The Code on Wages 2019, which paves the way for the introduction of mandatory minimum wages at the national level for 50 crore workers, has become a reality with the Government notifying the Code after it received assent from the President of India on August 8. The Lok Sabha on July 30 had cleared The Code on Wages Bill, 2019, followed by the Rajya Sabha’s nod on August 2. The Bill enables the Government to introduce the minimum wages for workers besides addressing issues such as delay in payment of wages to employees.
The Bill was earlier introduced in Lok Sabha in August 2017, and was referred to the Parliamentary Standing Committee, which submitted its report in December 2018. However, owing to dissolution of 16th Lok Sabha, the Bill had lapsed. Therefore, a fresh Bill was drafted after considering the recommendations of the Parliamentary Standing Committee and other suggestions of the stakeholders.
Speaking about the impact of the bill, Mr Rajeev Sharma, MD, G4S India, said “The Code On Wages is a historical bill which will ensure statutory protection for minimum wages and timely payment of wages to approximately 50 crore workers of the organized as well as unorganized sector. We welcome the government’s initiative to have brought major labour reforms in the past couple of years, along with the Code on Wages and proposed future changes. It will eventually aid in creating lakhs of jobs. We also appreciate the intent of the government to execute these massive changes, through the use of digital solutions and change the role of authorities from only inspection to facilitation also. We expect it will prove to be a milestone as it will promote respectful life to every worker of the country and tremendously help companies and entrepreneurs in ease of doing business”