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    Code On Wages

    Uploaded by

    vinay kumar singh
    The document discusses the Code on Wages Act 2019, which consolidates four labor laws in India - the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act. It received presidential assent in August 2019 but has not been notified. The Code repeals and subsumes the four acts. It defines key terms, sets provisions around minimum wages, payment of wages, and payment of bonus. It also outlines general provisions like establishment of advisory boards and appellate authorities as well as penalties for offenses.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Code On Wages

    Uploaded by

    vinay kumar singh
    48 views55 pages
    The document discusses the Code on Wages Act 2019, which consolidates four labor laws in India - the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act. It received presidential assent in August 2019 but has not been notified. The Code repeals and subsumes the four acts. It defines key terms, sets provisions around minimum wages, payment of wages, and payment of bonus. It also outlines general provisions like establishment of advisory boards and appellate authorities as well as penalties for offenses.

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    Code on Wages

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    The document discusses the Code on Wages Act 2019, which consolidates four labor laws in India - the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act. It received presidential assent in August 2019 but has not been notified. The Code repeals and subsumes the four acts. It defines key terms, sets provisions around minimum wages, payment of wages, and payment of bonus. It also outlines general provisions like establishment of advisory boards and appellate authorities as well as penalties for offenses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    48 views55 pages

    Code On Wages

    Uploaded by

    vinay kumar singh
    The document discusses the Code on Wages Act 2019, which consolidates four labor laws in India - the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act. It received presidential assent in August 2019 but has not been notified. The Code repeals and subsumes the four acts. It defines key terms, sets provisions around minimum wages, payment of wages, and payment of bonus. It also outlines general provisions like establishment of advisory boards and appellate authorities as well as penalties for offenses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 55

    The Code on Wages, 2019.

    Institute of Company Secretaries of


    India
    -The Catalyst for Good Governance
    Anand Gopalan
    T.S.Gopalan & Co
    The Code on Wages, 2019.
    Timeline of the Code:
    • Passed in the Lok Sabha on 30.07.2019

    • Passed in the Rajya Sabha on 02.08.2019

    • Got President’s assent on 08.08.2019

    • Published in Gazette dated: 08.08.2019


    The Code on Wages, 2019.

    HAS THE CODE ON WAGES 2019


    COME INTO FORCE?

    NO
    IT IS YET TO BE NOTIFIED
    The Code on Wages, 2019.

    This Code repeals and subsumes the following Acts:


    • The Minimum Wages Act, 1948.
    • The Payment of Wages Act, 1936.
    • The Payment of Bonus Act, 1965.
    • The Equal Remuneration Act, 1976.
    The Code on Wages, 2019.
    Name of the Act No of Sections
    The Minimum Wages Act, 1948 31
    The Payment of Wages Act, 1936 26
    The Payment of Bonus Act, 1965 40
    The Equal Remuneration Act, 18
    1976
    Total 115

    The Code on Wages Act 2019 69


    The Code on Wages, 2019.
    Topic Old Act Code of Wages

    Minimum Wages 31 10

    Payment of Wages 26 11

    Payment of Bonus 40 16

    Equal
    18 2
    Remuneration
    DEFINITIONS
    Chapter - I
    Sections 2(a) to 2(z)
    DEFINITIONS

    Appropriate Government
    DEFINITIONS
    DEFINITIONS

    CONTRACT LABOUR
    DEFINITIONS

    WAGES
    DEFINITIONS
    WAGES – Part 1
    • (y) "wages" means all remuneration whether by way of salary,
    allowances or otherwise, expressed in terms of money or
    capable of being so expressed which would, if the terms of
    employment, express or implied, were fulfilled, be payable
    to a person employed in respect of his employment or of
    work done in such employment, and includes,—
    (i) basic pay;
    (ii) dearness allowance; and
    (iii) retaining allowance, if any,
    WAGES – Part 2
    but does not include––
    (a) any bonus payable under any law for the time being in force, which
    does not form part of the remuneration payable under the terms of
    employment;
    (b) the value of any house-accommodation, or of the supply of light,
    water, medical attendance or other amenity or of any service
    excluded from the computation of wages by a general or special
    order of the appropriate Government;
    (c) any contribution paid by the employer to any pension or provident
    fund, and the interest which may have accrued thereon;
    (d) any conveyance allowance or the value of any travelling concession;
    WAGES – Part 3
    but does not include––
    (e) any sum paid to the employed person to defray special expenses
    entailed on him by the nature of his employment;
    (f) house rent allowance;
    (g) remuneration payable under any award or settlement between the
    parties or order of a court or Tribunal;
    (h) any overtime allowance
    (i) any commission payable to the employee;
    (j)any gratuity payable on the termination of employment;
    (k) any retrenchment compensation or other retirement benefit
    payable to the employee or any ex gratia payment made to him on the
    termination of employment:
    WAGES – Part 4
    Provided that, for calculating the wages under this clause, if payments made by the
    employer to the employee under clauses (a) to (i) exceeds one-half, or such other
    per cent. as may be notified by the Central Government, of the all remuneration
    calculated under this clause, the amount which exceeds such one-half, or the per
    cent. so notified, shall be deemed as remuneration and shall be accordingly added
    in wages under this clause:
    Provided further that for the purpose of equal wages to all genders and for the
    purpose of payment of wages, the emoluments specified in clauses (d), (f), (g) and
    (h) shall be taken for computation of wage.
    Explanation.––Where an employee is given in lieu of the whole or part of the
    wages payable to him, any remuneration in kind by his employer, the value of such
    remuneration in kind which does not exceed fifteen per cent. of the total wages
    payable to him, shall be deemed to form part of the wages of such employee;
    DEFINITIONS
    Component Quantum
    Basic Wages 5000
    Dearness Allowance 4500
    Total 9500

    Component Quantum Component Quantum


    Basic Wages 4000 Basic Wages 4000
    Dearness 2500 House Rent Allowance 2500
    Allowance
    House Rent 3000 Washing Allowance 3000
    Allowance
    Total 9500 Total 9500
    Wages = 4000+750 4750
    DEFINITIONS

    EMPLOYEE
    &
    WORKER
    DEFINITIONS

    SAME WORK OR WORK OF SIMILAR


    NATURE
    DEFINITIONS
    MINIMUM WAGES
    Chapter - II
    Sections 5 to 14
    Minimum Wages
    NEW CODE OLD ACT NEW CODE OLD ACT
    (Section 5 to (Section 5 to
    Section 14) Section 14)

    Section 5 Section 12 Section 10 Section 15

    Section 6 Section 3 Section 11 Section 16

    Section 7 Section 4 Section 12 Section 17

    Section 8 Section 5 & 9 Section 13 Section 13

    Section 9 Section 14 Section 14


    MINIMUM WAGES

    SCHEDULED EMPLOYMENT
    MINIMUM WAGES

    FIXATION OF MINIMUM WAGES


    MINIMUM WAGES

    FLOOR WAGE
    MINIMUM WAGES

    OVERTIME WAGES
    NORMAL RATE OF WAGES
    PAYMENT OF WAGES
    Chapter III
    Sections 15 to 25
    PAYMENT OF WAGES
    NEW CODE OLD ACT NEW CODE OLD ACT

    Section 15 Section 6 Section 22 Section 11


    Section 23 Section 12
    Section 16 Section 4
    Section 24 Section 12A
    Section 17 Section 5
    Section 25 Section 22
    Section 18 Section 7
    Section 19 Section 8
    Section 20 Section 9
    Section 21 Section 10
    PAYMENT OF WAGES

    MODE OF PAYMENT
    PAYMENT OF WAGES

    WAGE PERIOD
    TIME LIMIT FOR PAYMENT OF WAGES
    PAYMENT OF BONUS
    Chapter – IV
    Sections 26-41
    PAYMENT OF BONUS
    NEW CODE OLD ACT

    Section 26 Section 8, Section 13,


    Section 10, Section11,
    Section 12
    Section 27 Section 13
    Section 28 Section 14
    Section 29 Section 9
    Section 30 Section 3
    Section 31 Section 15
    Section 32 Section 4
    Section 33 Section 5
    Section 34 Section 6
    PAYMENT OF BONUS

    Accounting Year
    PAYMENT OF BONUS

    Wage ceiling for bonus eligibility


    PAYMENT OF BONUS

    Wages for Bonus Calculation


    PAYMENT OF BONUS

    Bonus Proportionate to Attendance


    above 8.33%
    PAYMENT OF BONUS

    Dispute – 8.33% to be paid.


    PAYMENT OF BONUS

    Disqualification for Bonus


    -Conviction for Sexual harassment
    PAYMENT OF BONUS
    • Twenty or more persons. • Eligible if worked for 30 days
    • 5 years infancy protection. • Allocable and Available Surplus
    • 8.33% & 20%. calculation
    • 8 months time limit. • Set on and Set off of allocable
    Surplus
    • Exemptions.
    • Deduction- Loss
    • Adjustment of
    Advance/pooja/Customary
    bonus.
    GENERAL
    PROVISIONS
    CHAPTERS V to IX
    Section 42 to 69
    ADVISORY BOARDS
    APPELLATE AUTHORITY
    INSPECTORS cum
    FACILITATORS
    WEB BASED INSPECTION
    SCHEME
    COMPOUNDING OF OFFENCE
    COGNIZANCE OF OFFENCES
    OFFICER TO IMPOSE
    PENALTY
    PUNISHMENTS
    Offence 1st Time Repeated within 5 years

    Non Payment of any amount


    Rs.50,000 Rs.1,00,000 or 3 months
    to an employee in terms of
    this Code

    Any other provision of the


    Rs.20,000 Rs.40,000 or One month
    Code
    Non-Maintenance or
    Improper Maintenance of Rs.10,000 -
    Registers
    BURDEN OF PROOF
    LIMITATION
    Changes brought by the
    Code
    • Concept of Scheduled Industries dropped;

    • Floor wages introduced;

    • Number of minimum rates of wages to be kept at minimum;

    • No changes in the component of minimum wages;

    • Power of Govt to fix floor wages depending on the geographical


    area;
    THANK YOU
    ANAND GOPALAN
    Partner
    T.S.Gopalan& Co.,
    Advocates & Notaries,
    No. 17, Lakshman street, T.Nagar,
    Chennai – 600 017.
    Mobile-9940157326
    Email- anand@tsgandco.com

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