The Code on Wages, 2019 aims to simplify wage structures by consolidating minimum wage laws.
Key Regulations:
- Uniform Wage Definition: A standard definition of ‘wages’ includes basic pay and allowances, affecting calculations for provident fund and gratuity.
- National Floor Wage: The central government sets a national minimum wage floor, and states cannot set wages below this level.
- Wage Revision: Wages must be revised at least every five years based on the cost of living index.
Impact on Businesses:
- Wage Adjustments: Employers need to adjust salary structures in line with state notifications and the national floor wage.
- Compliance and Penalties: Non-compliance with minimum wage provisions can attract penalties, making it important for businesses to stay updated on wage revisions.
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It is important to note that labour laws can be complex and subject to change. Please consult with lawyer to ensure that you are complying with all applicable laws and regulations.