The changes under the Code on Wages, 2019, mark a notable evolution in India's labour legislation, aiming to address long-standing gaps and extend protections to a broader segment of the workforce. By removing wage ceilings, broadening the definition of employees, and introducing gender-neutral provisions, the Code seeks to create a more inclusive framework.
The Code on Wages, 2019, is a significant legislative reform that consolidates and rationalizes wage-related laws in India. This Code will replace four existing labour laws: the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. By streamlining wage regulations, the Code aims to ensure uniformity in wage policies and promote fair and transparent compensation practices across various sectors.
1. A Step Towards Inclusive Labour Protection
- Majority of labour laws in India primarily apply to the organized workforce, covering approximately 9-10% of the total workforce. This leaves nearly 90% of the workforce without legislative protection.
- The Minimum Wages Act, 1948, applies only to scheduled industries, mainly benefiting the organized sector. In contrast, the Code on Wages will apply to all sectors without specific inclusion or exclusion criteria, extending its coverage to areas such as domestic service.
- Similarly, the Payment of Wages Act, 1936, applies...
