Consolidates four laws relating to wages and remuneration.
- Aim: To strengthen workers' rights while promoting simplicity and uniformity in wage-related compliance for employers.
- Key Provisions
- Universal Minimum Wages: The Code establishes a statutory right to minimum wages for all employees across both organized and unorganized sectors.
- Criteria for Wage Fixation: skill levels, geographic areas, and job conditions such as temperature, humidity, or hazardous environments.
- Introduction of Floor Wage: A statutory floor wage shall be set by the Government based on minimum living standards, with scope for regional variation.
- No state can fix minimum wages below this level, ensuring uniformity and adequacy nationwide.
- Compensation: Mandates timely payment and provides for overtime compensation at least 2x the normal rate.
- Simplification: Standardises key definition e.g. 'wages',' employee', across the entire legislative framework, reducing compliance confusion.
- Universal Minimum Wages: The Code establishes a statutory right to minimum wages for all employees across both organized and unorganized sectors.
Merits/significance | Concerns/Demerits |
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