Labor Law, 2020 Updates

On Tuesday the Ministry of Labor and Employment released the draft rules for introducing a Code on Wages for 2019, which grants minimum wages to everyone, sets down the estimation of wages and lays down for everyone States national floor wages. The Ministry invited public opinions and recommendations for 45 days from the date of publication-July 7, by way of a Gazette Notice. The Wage Code was the first of the Government’s four laws, which were adopted by Parliament in August 2019 as part of the labor law reforms. It subsumes the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976.
The draft regulations will create a typical working class family with one earning employee, a partner and two children as a criterion for the measurement with minimum wages, a net consumption in the order of 2,700 calories a day each, a rental cost equal to 10% of the expenditures of food and clothes, coal, energy and the other diverse expenditures in the amount of 20% of minimum wage.

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