On Tuesday, the Lok Sabha has passed the Wages Code Bill that will ensure the minimum wage for workers. It will also be addressing issues like delay in payments to employees.

The Code on Wages Bill, 2019 aims to revise and strengthen the laws relating to wages and bonus and matters.  Labour Minister Santosh Kumar Gangwar termed the bill as a “historic step” and claimed that it will benefit 50 crore workers.

The Bill was passed by voice vote and is comprised of the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act and Equal Remuneration Act. After its enactment, all these four Acts would be repealed.

The labor minister while drafting the bill stated that the government has accepted 17 out of the 24 recommendations which were put up by the Standing Committee. It was the committee which scrutinized the same kind of bill introduced in the previous Lok Sabha.

Mr. Gangwar further claimed that the bill claims that the tripartite committee comprising representatives of trade unions, employers and state government would fix a floor wage for workers throughout the country.

Additionally, the new bill will also effectively be addressing the problems relating to delay in payments of wages whether, on monthly, weekly or daily basis, the Minister said.

Workers who are working below a particular salary in Scheduled Employments will come under the provision of both the Minimum Wages Act and Payment of Wages Act. The basic wage will be decided on the basis of minimum living conditions. It is likely to say moreover 50 crore workers all over the country will be benefited by the scheme.

The move has been taken currently there are 12 definitions of wages in various labor laws which are causing difficulty in its implementation. The definition has been simplified in the Bill. It may reduce litigation and also reduce the complication of wages for employers.

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