Benefits of The Code on Wages Act 2019

Introduction of The codes on wages act 2019

The Code on Wages Act 2019 will help in promoting transparency and predictability in wage determination and will also help in ensuring timely payment of wages.
The Code on Wages Act 2019will help in ensuring uniformity and application of minimum wages across the country.
The Code on Wages Act 2019will help in protecting the interest of workers and will also promote social security and the welfare of workers. The Code on Wages act 2019 will help in promoting transparency and predictability in wage determination and will also help in ensuring timely payment of wages. The Code on Wages will help in ensuring uniformity and application of minimum wages across the country. The Code on Wages will help in protecting the interest of workers and will also promote social security and the welfare of workers. The Code on Wages will help in ensuring transparency and predictability in wage determination and will also help in ensuring timely payment of wages. The Code on Wages will help in ensuring uniformity and application of minimum wages across the country. The Code on Wages will help in protecting the interest of workers and will also promote social security and the welfare of workers.
The Code of Wages is passed in the year 2019 in August month. This Wages act strengthens the requirements of four labour laws relating to bonuses, and wages for all labour /workers all over India.

The following Acts unified to form The Code of Wages, 2019 are:

Payment of Wages Act, 1936
Minimum Wages Act, 1948,
Payment of Bonus Act, 1965
Equal Remuneration Act, 1976.
The Code of Wages is organized to treat all the employees working irrespective of their numbers. This act is implemented on all the employees or labourers working in both the organized and the unorganized sector. The description of all the acts united to form a new code of wages act for employees are as follows:-

.Payment of wages Act, 1936

The Payment of Wages Act, 1936 related to the payment of wages to employees in direct and indirect ways. The act is considered the solution against unauthorized deductions and delays in the payment of wages.

.Minimum Wages Act, 1948

The Minimum Wages Act 1948 is an Act of Parliament that establishes the minimum wages given to skilled and unskilled labour to maintain their living standards including good health, basic needs, enjoyment, education, etc.

.Payment of Bonus Act, 1965

At least an 8.33% bonus is payable by every industry under section 10. The maximum bonus including a productivity-linked bonus that can be paid in any estimated year will not surpass 20% under section 31 A of the Act.

.Equal Remuneration Act, 1976

An Act that gives a payment of equal remuneration to men and women workers without any discrimination, on the ground of sex.

.What is the meaning of the ‘The Code on Wages act 2019’?

The Code on Wages act 2019 was instructed by the Minister of Labour, Mr Santosh Gangwar on July 23, 2019, in Lok sabha. It aims to maintain a wage and bonus system in all employment areas where any industry, trade, business, or manufacture is produced. The Code replaces the four laws discussed above. Wages comprise salary, allowance, or any other component expressed in monetary terms except bonus payable to employees or any travelling allowance.
Coverage of the act is applied to all types of employment in organised and organised sectors. the state government will make decisions on all types of employment. Wages include salary, pension, gratuity and all monetary terms related to the employment. According to the Code, the central government will stabilize a floor wage, to the living standards of workers. And it may establish different floor wages for different geographical areas. Modes of payment for Wages will be in coins, currency notes, cheques, and a bank account.

The Benefits of Code on Wages act 2019

. Universal Minimum Wage

According to the law, the amended code will widen to all workers. All employees will get their wages according to the geographical area, not depend on employment work. Workers in the different sectors will be covered under Employee State Insurance.PF and gratuity will lead to stress-free life for the person working in an organised sector.

. A History of Exploitation

This new law is to make employees protected from unnecessary deduction of salary for small unnecessary reasons. The government under the new code has also established that the salary reduction in numerous forms, including housing rent, loans, or penalties, should not exceed 50% of wages to prevent employees’ exploitation.

. Boost to Contractual Employees

The new wage code will further guarantee that the workers employed on a contract basis are not abused by the contractor. The new wage code will also confirm that any arbitrary, circumlocution, and malpractices during labour assessment are underrated.

. Empowering Women along with Non-discrimination

The new labour law will ensure that no injustice occurs on the grounds of gender during employee hiring. It provides that women can work in all types of exchange. The new wage code will assure that employees will be hired based on their skills and abilities not on gender basis. It maintains healthy competition between the employees. and what they can bring to the table if hired rather than giving preference to a particular on any gender.

. Flexible Working Hours

The new labour law allows people to select between three shifts, including 4-days a week where they have to work for 12 hours a day, 5-days a week where they have to work 9.5 hours a day, and 6-days a week working 8 hours a day. Thus, employees will have the advantage of choosing the shift according to their requirements. And the Overtime will also pay the employee.

Conclusion

Here in the article, we have discussed the meaning of the code on wages act and how it benefits the employees of organised and organised sectors. The new law replaces the four laws of government discussed above. The people can go through the article and can understand the concept of the current code on wages act with its advantages easily.

FAQs

1)Is the Code on Wages applicable?

Ans. The Code on Wages, 2019 received the assent of the president on September 28, 2020. The Code focuses on simplifying the existing labour laws dealing with payment of wages, overtime, bonus, minimum wages etc.

2)What are the benefits of the Payment of wages Act 1936?

Ans. Regulate payment of wages to a specific class of workers employed in the industry without any wrongful deductions apart from what is mentioned in the Act. Define regulations around fixing of wage period, time and mode of payment of wages. Regulates the rights of the workers covered under this Act.

3)How do consumers benefit from the implementation of minimum wages?

Ans. The more people earn, the more they are inclined to spend not only on the basics such as housing and food but also on entertainment, travel and consumer goods. Companies prosper when consumers feel confident enough to make purchases. In addition, prosperous businesses typically have to hire more workers.

4)What are the advantages of minimum wage?

Ans.Advantages of minimum wage following:-

Higher labour costs for companies labour higher motivation of work higher loss of competitiveness
Better working quality Replacement of workers with machines
Better chances to get out of poverty
5)Why should the government not raise the minimum wage?

Ans. Some policymakers are proposing to raise the minimum wage, but that policy would be harmful. Research shows businesses would respond to the increased costs by reducing employment, particularly for low-skilled workers. Some businesses may pass the higher costs on to consumers.

6)What are the disadvantages of minimum wage?

Ans. The disadvantages of the minimum wage are:-

Higher labour costs for companies
Loss of competitiveness
Replacement of workers with machines
Higher unemployment