The code on wages 2019

Compliance on Wage Code

1. THE CODE ON WAGES 2019 Khaliqur Rahman Advocate [phone] Khaliqur Rahman(Advocate) [phone]

2. THE CODE ON WAGES, 2019 Khaliqur Rahman(Advocate) [phone]

3. A Code on Wages 2019 A bill was introduced by both houses of the Parliament on 8 th August 2019. Code on Wage bill 2019 Khaliqur Rahman(Advocate) [phone]

4. The Code amends and consolidates the following four laws: The Payment of Wages Act, 1936 (POWA) The Minimum Wages Act, 1948 (MWA) The Payment of Bonus Act, 1965 (POBA) The Equal Remuneration Act, 1976 (ERA) Khaliqur Rahman(Advocate) [phone]

5. Advisory boards: The central and state governments will constitute advisory boards.  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.  The Boards will advise the respective governments on various issues including: ( i ) Fixation of minimum wages, and (ii) Increasing employment opportunities for women. Khaliqur Rahman(Advocate) [phone]

6. Coverage and Applicability: The code on wages will apply to employees in the organized and un-organized sectors. While the central Government will continue making wage-related decisions for employments such as railways, mines, oil fields, cerntral public sector undertaking etc., the State Governments shall make such decisions for all other employments including for private sector establishments. Unlike the POWA which applied to only those employees who drew monthly wages of up to INR 24000 and the MWA which applied only to scheduled employments, the provisions of the Code on Wages to payment of Wages shall extend to all employees irrespective of their wage ceiling and type of employment. Khaliqur Rahman(Advocate) [phone]

7. Definition of Wages: Wages include Basic, Dearness Allowance and Retaining Allowance if any And Excluded :- Any Bonus payable; any value house-accommodation, water, supply of light, medical attendance or other amenity; Any contribution paid by the employer in PF, Pension if any; Conveyance or Travelling allowance; HRA; Overtime Allowance; Any other commission; Gratuity or Retrenchment Compensation or Retirement Benefit; Floor wage:  According to the Code, the central government will fix a floor wage, taking into account living standards of workers.  Further, it may set different floor wages for different geographical areas.  Before fixing the floor wage, the central government may obtain the advice of the Central Advisory Board and may consult with state governments.   The Minimum wages decided by the central or state governments must be higher than the floor wage. In case the existing minimum wages fixed by the central or state governments are higher than the floor wage, they cannot reduce the minimum wages. Khaliqur Rahman(Advocate) [phone]

8. WAGES EMPLOYEE A EMPLOYEE B EMPLOYEE C Basic 15000 50000 15000 DA 6000 Retaining Allowance Exclusion HRA 6000 25000 10000 Advance Bonus (Monthly 583 583 Conveyance 2000 3000 2000 Sales Commission 3000 3000 PF Employer Share 2520 1800 Overtime 3000 5000 3000 Sum of exclusions 14103 36000 20383 Sum of Remuneration 35103 86000 35383 50% of Limit 17551.50 43000 17691.50 Exclusions Exceeds 50% No No Yes Add to Wages Nil Nil 2691.5 In Case of Employee C , Basic Wage =15000+2691.5 =17691.5 DA =2691.5 or RA = 2691.5 or Basic = 2691.5 Khaliqur Rahman(Advocate) [phone]

9. Definition of Employee: Employee means: any person (other than an apprentice engaged under the Apprentices Act,1961)(52 of 1961) Any skilled, semi-skilled or unskilled,Mannual & operational Supervisorory , Managerial, Administrative Technical or Clerical worker Contract worker Excluded = Member of Armed Force Khaliqur Rahman(Advocate) [phone]

10. Fixing the minimum wage: The Code prohibits employers from paying wages less than the minimum wages.  Minimum wages will be notified by the central or state governments.  This will be based on time, or number of pieces produced.  The minimum wages will be revised and reviewed by the central or state governments at an interval of not more than five years.  While fixing minimum wages, the central or state governments may take into account factors such as: ( i ) Skill of workers, and (ii) Difficulty of work.  Khaliqur Rahman(Advocate) [phone]

11. Overtime:   The central or state government may fix the number of hours that constitute a normal working day.  In case employees work in excess of a normal working day, they will be entitled to overtime wage, which must be at least twice the normal rate of wages Khaliqur Rahman(Advocate) [phone]

12. Payment of wages: 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.  The wage period will be fixed by the employer as either: Daily, Weekly, Fortnightly, or Monthly. Khaliqur Rahman(Advocate) [phone]

13. Deductions: Under the Code, an employee’s wages may be deducted on certain grounds including: Fines, Absence from duty, Deduction for damage or loss Deduction for recovery of advances Accommodation given by the employer, or Recovery of advances given to the employee, among others.  “ These deductions should not exceed 50% of the employee’s total wage” Khaliqur Rahman(Advocate) [phone]

14. Determination of Bonus: All employees whose wages do not exceed a specific monthly amount, notified by the central or state government, will be entitled to an annual bonus.  The bonus will be at least: 8.33% of his wages, or Rs 100, whichever is higher.  “An employee can receive a maximum bonus of 20% of his annual wages ” Khaliqur Rahman(Advocate) [phone]

15. Gender Discrimination: The Code prohibits gender discrimination in matters related to wages and recruitment of employees for the same work or work of similar nature.  Work of similar nature is defined as work for which the skill, effort, experience, and responsibility required are the same. The code make any discrimination on the ground of sex while recruiting any employee for the same work or work of similar nature and in the ccondition of employment, except where the employment of women inn such work is prohibited or restricted by or under any law for the time being in force Khaliqur Rahman(Advocate) [phone]

16. Records, Returns & Notices Mustor Roll Cum Wage Register Display of Abstract Categories wise Wage Rate Rate of Wages Wage Period Day or Date and time of payment of wages Name & address of the Inspector-cum-Facilitator having Jurisdiction Wage Slip Return on Shram Suvidha Portal Khaliqur Rahman(Advocate) [phone]

17. Offences The Code specifies penalties for offences committed by an employer, such as :- Paying less than the due wages, or For contravening any provision of the Code.  Penalties Penalties vary depending on the nature of offence:- Punishment with fine which may extend to fifty thousand rupees; Offence again found on guilty of similar activity (Within years from the date of commission of the first or subsequent offence) :- the maximum penalty being imprisonment for three months along with a fine of up to one lakh rupees. Khaliqur Rahman(Advocate) [phone]

18. Thanking you Khaliqur Rahman Advocate Khaliqur Rahman(Advocate) [phone]