Bill to fix minimum wage for unorganised sector introduced in Lok Sabha

The govt. has introduced The Code on Wages Bill in Lok Sabha that seeks to fix a national minimum wage for all categories of over 40 crore unorganised sector workers and provide a fixed timeline for their payment – in some cases only through electronic means or cheque.


  • The Code provides for the government to determine the minimum wages every five years using factors like skills required for the job, arduousness of work, geographical location of work place and other aspects.

  • Such wages are to be fixed on recommendation of panels comprising an equal number of representatives of employers and employees, and independent persons.

  • The Code stipulates that the wages are to be paid in coin or currency notes or by cheque or through digital or electronic mode or by crediting the wages in the bank account of the employee and the government may specify industrial or other establishment where the salary will be paid only through cheque or digital mode.

  • The bill seeks to amalgamate four laws — Payment of Wages Act 1936, Minimum Wages Act 1948, Payment of Bonus Act 1965 and Equal Remuneration Act 1976.

  • The government will fix the number of hours of work that would include a day of rest every seven days. The payment for work on a day of rest will not be less than overtime rate.

  • The wages payable shall be paid within two working days where an employee is removed or dismissed from service as also when he or she resigns.

  • The Code provides employers with authority to make deductions from the wages only in case of fines imposed, absence from duty, damage or loss of goods expressly entrusted with the employee custody, housing accommodation and amenities and services.

Source: Economic Times

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