What are the determining factors of the new version of the Code on Wages Bill, cleared by the Union Cabinet?

Published: July 4, 2019

The Union Cabinet of India has recently cleared the latest version of the Code on Wages Bill, which defines the guidelines for fixing of minimum wages which will be applicable to both the organized and the unorganized sectors excluding the government employees and MGNREGA workers.

  • The Bill states that the all kinds of minimum wages are connected to all the factors like skills and geographical regions and not the current categories like skilled, unskilled, semi-skilled, and nature of work. It is expected that the wages will drop down to 300 from 2500 minimum wage rates.
  • The National Floor Level Minimum Wage which will be defined by the Centre will be revised every five years. When states fix the minimum wages for their respective regions it cannot be below the floor wage.
  • Union Cabinet will soon release the Code on Occupational Safety, Health and Working Conditions. NDA in its first term had codified the labour laws into four codes.

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