New Wage Code

  • This code applies to all establishments, employees and employers unless exempted explicitly in the code
  • Uniformity in the Definition like Employer, Employee, Establishment, Wages and Worker
  • The new definition of establishment covers any place where any industry, trade, business, manufacture, or occupation is carried on, including Government establishment
  • The Equal Remuneration Act was earlier Applicable only to workers. Now, the scope has been widened, and it covers all Employees and Employers in any establishment 
  • Minimum Wages scope has been widened, the concept of scheduled employment has been eliminated, and now the provision applies to all employees and employers 
  • Overtime rates shall not be less than twice the normal rate of wages. Earlier overtime of twice the normal rate was mandatory only with respect of workers covered under the Factory Act
  • Full wages are payable to part-time employees to avoid payment of full wages by showing the employee as part-time
  • No change in time limit of payment of wages, i.e., 7th or 10th as the case may be
  • Deduction from wages maximum up to 50%
  • The upper limit of 21000 from Bonus eligibility will be removed from the definition, and a new limit will be specified
  • Contractor and subcontractor have been specifically included in the definition of employer
  • The officer of state govt can impose penalties. not below the rank of Under Secretary

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