All About Minimum Wages Notifications (Central & States)

By Bhuvana Anand

2 minute read ● August 12, 2020

All About Minimum Wages Notifications (Central & States)

As per the Minimum Wages of the employees/workers Code, employers shall not pay the ‘Wages’ less than the ‘Minimum Wages’ notified by the Central or State Governments.

The Minimum Wages of the employees/workers are governed by the Code on Wages, 2019 (“Code”).

This Code replaces four labour laws, viz.,

(i) the Payment of Wages Act, 1936

(ii) the Minimum Wages Act, 1948

(iii) the Payment of Bonus Act, 1965

(iv) the Equal Remuneration Act, 1976

The Central or State Governments consider the skill of the workers and the nature of the work in terms of its difficulties and on the basis of time rate or piece rate. This Minimum Wages must be higher than the ‘Floor Wages’ determined by the Central or State Government which is generally calculated considering the living standards of employees/workers, advice of the Central Advisory Board and if required consult with the respective State Governments.

About the Minimum Wages Notifications Code

All About Minimum Wages Notifications (Central & States

The term ‘Wages’ include salary, allowance, or any other component that are expressed in monetary terms but does not include bonus or any travelling allowance payable to the employees. The Minimum Wages Notifications Code prohibits prohibits gender discrimination in matters related to wages and recruitment of employees for the same work or work of similar nature. Work of similar nature is defined as work for which the skill, effort, experience, and responsibility required are the same.

The Minimum Wages Notifications Code specifies penalties for offence committed by an employer, such as paying less than the due wages, or for contravening any provision of the Code. Penalties vary depending on the nature of offence, with the maximum penalty being imprisonment for three months along with a fine of up to one lakh rupees.

greytHR provides its customer and audience a consolidated list of latest Minimum Wages Notifications published by the States for quick reference.