Impact Of Code On Wages, 2019 On The Private Sector

The Code on Wages, 2019 ("Code"), which was enacted on August 8, 2019, will become effective from the date to be notified by the Central Government. The Government aims to implement the Code, along with the other three labour codes, by year end or early next year. The draft rules under the Code ("Rules") were published on July 7, 2020 to seek public feedback.

The Code will consolidate four Central labour enactments on wages, viz. the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 ("Bonus Act"), and the Equal Remuneration Act, 1976. As its title suggests, it incorporates all the essential elements related to wages and, to an extent, even regulates the wages of highly remunerated, managerial, and supervisory employees.