New Delhi, Nov 23 (NationPress) The newly implemented Code on Wages is designed to enhance fairness, equity, and inclusivity within India's labour market. By establishing standardized wage norms and social security, it not only protects the rights of workers but also considers the interests of employers. This initiative aims to bolster economic justice, foster formal employment, and elevate the dignity of labor, as stated in an official announcement made on Sunday.

According to Section 5 of the Code on Wages, 2019, a legal right to minimum wages is now granted to all employees, broadening its scope to encompass every sector, including both organized and unorganized. Previously, minimum wage regulations were limited to scheduled employment, impacting about 30% of the workforce.

The Code guarantees minimum remuneration for all workers, regardless of industry, type, or employment nature. It offers a consistent legal framework across the nation, diminishing wage inequalities and benefiting vulnerable groups such as casual workers, daily laborers, and migrant workers, as highlighted in the statement.

This legislation standardizes the definitions of critical terms and simplifies processes, thereby reducing confusion and ensuring quicker, time-bound justice for employers. The overarching goal of these labor reforms is to stimulate economic growth through the creation of quality employment opportunities for everyone, as outlined in the official statement.

The second National Commission on Labour recommended that existing labor laws be consolidated into four or five functional labor codes. As a result, the Code on Wages, 2019 is one of the four enacted labor codes.

This Code protects employee rights through fair wages, social security, and safeguards against exploitation, ensuring dignity and stability in the workplace. It also advocates for women in the workforce by promoting equal pay and representation, thus encouraging inclusive participation. By guaranteeing equitable wages and social security for all workers, it enhances productivity and overall labor welfare.

The Labour Reforms streamline the registration and licensing process by introducing a Single Registration, Single License, and Single Return, significantly minimizing compliance burdens to enhance employment.

The Code on Wages, 2019 has notably reduced the number of rules from 163 to 58, forms from 20 to 6, and registers from 24 to 2.

This provision aims to mitigate regional wage disparities, promote social justice, prevent wage undercutting by states, and foster equity throughout the country.

Section 9, in conjunction with Rule 11 of the Code, establishes floor wages as a statutory requirement. The baseline wages will be determined by the Central Government based on the minimum living standards of employees, including provisions for food, clothing, and more. These wages will be adjusted periodically. State governments are mandated to ensure their minimum wages do not fall below this floor level.

This new law is expected to decrease labor migration between states due to diminished wage differentials and prevent wage undercutting, thereby advancing equity and growth nationwide.

Minimum wage rates for various work types—whether paid by the hour, day, or month—will be established by the appropriate government, taking into account employee skill levels, geographical location, and the difficulty of the work. The government is required to revise the minimum wage rates at intervals not exceeding five years.

The Code also enforces limits on working hours to protect employee health, avert over-exploitation, promote a work-life balance, and enhance productivity.

Provisions concerning timely wage payments and unauthorized deductions, which previously applied only to employees earning up to Rs 24,000 per month, are now applicable to all employees, regardless of their salary. This provision ensures wage fairness, as it encompasses every employer under the law equally.

Additionally, the wage code mandates that employers provide wage slips, either electronically or physically, prior to wage payments, promoting transparency and minimizing disputes. This protection is extended to workers in both organized and unorganized sectors, including daily wage earners and contract employees.