Ministry of Labour and Employment issues clarification on Code on Wages Bill, 2017
The Ministry of Labour and Employment, Government of India (“Ministry”) on 6th September, 2017 has issued a clarification on the Code on Wages Bill, 2017 (“Code”). The Code, which will subsume the following four existing Laws, was introduced in Lok Sabha on 10.08.2017:
- Minimum Wages Act, 1948;
- Payment of Wages Act, 1936;
- Payment of Bonus Act, 1965; and
- Equal Remuneration Act, 1976.
Pursuant to some news reports being published regarding the fixation of national minimum wage as Rs. 18000/- per month by the Central Government, the Ministry has clarified that the Central Government has not fixed or mentioned any such amount as “national minimum wage” in the Code and also stated such news reports to be incorrect, false and baseless. Further to this, the Ministry clarified that the minimum wages will vary from place to place depending upon skill required, arduousness of the work assigned and geographical location.
The Ministry has also negated recent reports in the media regarding the revised methodology for calculation of minimum wages and also clarified that the same was purely a demand raised by Trade Unions in the recent meeting of the Central Advisory Board on Minimum Wages. Such proposal is not part of the Code.