Lok Sabha Question No. 1221 (UNSTARRED), answered on 2022-07-25
Subject: New Wage Code
Ministry: LABOUR AND EMPLOYMENT
Asked by: Sarmistha Sethi, Sushil Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## UNSTARRED QUESTION NO. 1221 TO BE ANSWERED ON 25.07.2022

## NEW WAGE CODE

## 1221. SHRIMATI SARMISTHA SETHI:

## SHRI SUSHIL KUMAR SINGH:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether  the  Government  is  bringing  a  new  Wage  Code,  if  so,  the details thereof;
- (b)whether the proposed Wage Code will help in welfare of the working class;
- (c)the  intended  impact  of  the  new  Wage  Code  on  the  investor sentiments;
- (d)the time by which the four new labour codes will come into effect;
- (e)whether the Ministry, any bodies under its administrative control or any  other  Ministry  or  Government  body  has  tried  to  project  the impact of the implementation of the labour codes on employment, if
- so, the details thereof along with exact projections; and
- (f)the  possible  impact  of  implementation  of  codes  on  ease  of  doing
- business?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

- (a) & (b): The Code on Wages, 2019, has been notified on 08 August 2019,  and  the  provisions  of  the  Payment  of  Wages  Act,  1936,  the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976, have been rationalised and subsumed therein.  The  Code  provides  for  universal  minimum  wage  across employments in organized and unorganized sector. The Code mandates the Central  Government  to fix  floor  wage  and  that    the

minimum rates of wages fixed by the appropriate  Governments shall not be less than the floor wage. The Code prohibits gender discrimination in matters related to wages  and recruitment of employees  for  the  same  work  or  work  of  similar  nature  done  by  an employee.  Every employee, drawing wages not exceeding a monthly amount as notified by the Central or State Government, and having put in at least 30 days of work in an accounting year, will be entitled to an annual  bonus  at  the  rate  of  8.33%  of  wages  earned  or  Rs.  100, whichever is higher.

(c) to (f): 'Labour'  as  a  subject  is  in  the  Concurrent  List  of  the Constitution of India and under the Codes, the power to make rules is vested with the Central Government as well as the State Governments as appropriate Government. As a step towards implementation of the four Labour Codes, the Central Government has pre-published the draft Rules, inviting comments  of all stakeholders. As per available information,  31,  26,  25  and  25  States/Union  Territories  have  prepublished  the  draft  Rules  under  the  Code  on  Wages,  2019,  the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the  Occupational  Safety  Health  and  working  Conditions  Code,  2020 respectively.

The  Labour  Codes  were  drafted  after  wide  consultations including  nine  tripartite  meetings  involving  employers'  and  workers' representatives, regional Labour Conferences, inter-Ministerial consultations  and  based  on  reports  of  the  Parliamentary  Standing Committee  on  Labour.  The  endeavor  has  been  to  align  the  Labour Codes with the present economic scenario and technological advancements  along  with  reduction  in  multiplicity  of  definitions  & authorities. The Codes tend to ease compliance mechanism aiming to promote  ease  of  doing  business/setting  up  of  enterprises,  attract investment  and  catalyze  creation  of  employment  opportunities  while ensuring  safety,  health  and  social  security  of  every  worker.  Use  of technology  has  been  introduced  in  order  to  ensure  transparency  & accountability in enforcement. Decriminalization of minor offences has also been provided in the Labour Codes.

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