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ARTICLE · 18 OCTOBER 2017

Labor & Employment Laws – Updates (September 2017)

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To begin with, wages include salary, allowance, or any other component expressed in monetary terms and generally does not include bonus payable to employees or any travelling allowance, among others.

IndiaEmployment and HR

The Code on Wages 2017

To begin with, wages include salary, allowance, or any other component expressed in monetary terms and generally does not include bonus payable to employees or any travelling allowance, among others.

The Code on Wages, 2017 ('Wages Code')1 was introduced in Lok Sabha by the Minister of Labour on August 10, 2017 seeking consolidation of laws relating to wages by replacing: (i) the Payment of Wages Act, 1936, (ii) the Minimum Wages Act, 1949, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal Remuneration Act, 1976.

The Wages Code shall be extended to establishments, including government establishments, where any industry, trade, business, manufacturing or occupation is carried out. The central government will make wage-related decisions for its authorities, and establishments related to railways, mines, and oil fields, among others whereas the state governments will make decisions for any other establishments.

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