Govt notifies draft rules for Code on Wages

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News: The Labour and Employment Ministry has notified the draft Code on Wages (Central) Rules under the Code on Wages,2019.

Facts:

  • Code on wages, 2019: It has amended and consolidated laws relating to wages, bonus and related matters.The Code subsumed four labour laws – a) Payment of Wages Act,1936, b) Minimum Wages Act,1948 c) Payment of Bonus Act,1965 and the d) Equal Remuneration Act,1976.

Key Provisions of Draft Wage Rules:

  • Working hours: The normal working day shall comprise eight hours of work and one or more intervals of rest which in total shall not exceed one hour. 
  • Central Advisory Board: Government will set up a Central advisory board to fix the floor-level minimum wages.
  • Calculation of minimum wage: The criteria for fixing the minimum rate of wages per day for employees include: (i) standard family of four (self, spouse and two children) (ii) daily intake of 2700 calories per consumption unit, (iii) 10% expenditure on rent, (iv) 20% expenditure of fuel, electricity, and miscellaneous items, and (v) 25% expenditure on education, medical requirements and contingencies.
  • Norms for fixing minimum wage:Minimum wages will be calculated on the basis of the geographical area of employment and the skill category of an employee.  
    • For this purpose, the central government will divide the geographical area into three categories: metropolitan,, non-metropolitan and rural areas.
    • The occupations are also divided into four skill categories: unskilled, semi-skilled, skilled and highly skilled.
  • Technical committee: A Technical Committee will be formed to suggest, modify, add or delete particular occupations in the tentative list of four categories: unskilled, semi-skilled, skilled and highly skilled.