Impact of the Definition of ‘Wages’ on Statutory Benefits

Introduction The Code on Wages, 2019 has introduced a universal definition of wages that has been incorporated across the three other labour Codes as well. This definition is a marked departure from the multiple varied definitions of the term across different enactments. While the attempt to universalize the definition of such a key term is commendable, much remains to be seen with regards to its effects on wage structuring, payroll, and statutory benefits. The new…

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The Problem With a Universal Definition of Wages

Introduction The Code on Wages has been brought in as a part of the Government’s efforts to untangle India’s complex regulatory framework pertaining to labour. As part of the Code, the Government has introduced a new definition of the term ‘wages’ that is uniform across the four Labour Codes. The uniform definition comprises three parts – an inclusive portion, specified exclusions and conditions that place a limit on the quantum that may be claimed as…

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‘Wages’ Under Payment of Wages Act & Code on Wages: A Comparative Analysis

Introduction The Code on Wages, 2019 has been passed by the Parliament and with the draft Central rules awaiting Parliament’s approval, India’s biggest overhaul of labour laws is imminent. The Code on Wages, 2019 subsumes four labour legislations, namely:- 1.  The Payment of Wages Act, 1936 2.  The Minimum Wages Act, 1948 3.  The Payment of Bonus Act, 1965 4.  The Equal Remuneration Act, 1976 Several changes were brought in through the Code to facilitate…

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Changes to VDA Under Minimum Wages

The Minimum Wages Act, 1948 is a social-welfare legislation that aims to regularize the payment of wages for certain classes of employments known under the Act as scheduled employments. The objective is to ensure that workers are not exploited by being forced to work for wages below the specified threshold set by either the Central or State Government. The ‘appropriate government’ under the Act fixes minimum wages by way of notification in the Official Gazette…

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Labour Law for Beginners: Minimum Wages

Introduction/Author’s Note: Series – Production of goods and provision of services constitute the cornerstone of any economy, and its labour is the driving force behind the provision of such goods and services. Therefore, it is crucial for an employer to ensure that labour is being compensated adequately for services rendered, in order to maintain a cordial relationship at the workplace and ensure employee satisfaction. The compensation does not only involve remuneration in the form of…

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