Code on Wages Act,2019 Flashcards
What is source of new definition of wages?
new definition of wages is part of the Code on Wages, 2019 passed by Parliament last year.
The new definition would result in a major cut in take-home salaries and also place a burden on employers.
About the Code on Wages Act?
The wage code universalises the provisions of minimum wages and timely payment of wages to all employees, irrespective of the sector and wage ceiling.
It ensures the “right to sustenance” for every worker and intends to increase the legislative protection of minimum wage from existing about 40% to 100% workforce.
It also introduces the concept of statutory floor wage which will be computed based on minimum living conditions and extended qualitative living conditions across the country for all workers.
While fixing the minimum rate of wages, the central government shall divide the concerned geographical area into?
three categories – metropolitan area, non-metropolitan area and the rural area.
What is included in wages?
salary, allowance, or any other component expressed in monetary terms. This does not include bonus payable to employees or any travelling allowance, among others.
Provision related to floor wage?
The minimum wages decided by the central or state governments must be higher than the floor wage.
Payment of wages can be done through?
Wages will be paid in (i) coins, (ii) currency notes, (iii) by cheque, (iv) by crediting to the bank account, or (v) through electronic mode.
Wge period can be fixed as?
(i) daily, (ii) weekly, (iii) fortnightly, or (iv) monthly.
The Central Advisory Board will consist of?
(i) employers, (ii) employees (in equal number as employers), (iii) independent persons, and (iv) five representatives of state governments.
State Advisory Boards will consist of?
employers, employees, and independent persons. Further, one-third of the total members on both the central and state Boards will be women.
Boards will advise the respective governments on which issues?
(i) fixation of minimum wages, and (ii) increasing employment opportunities for women.
