[vc_row][vc_column][vc_column_text]The new Code on Wages Bill proposed by the Centre should adopt a more benevolent and constructive attitude towards the MSME sector: PIA President R. Krishnamurthy
One of the major and long pending demands of MSMEs, viz. labour reforms is now on the radar of the central government. Taking a major step towards labour reform in the country, the Labour Ministry has reportedly sought Cabinet approval for the new labour code on wages. Once approved, it will be laid in Parliament during the upcoming Monsoon session.
According to media reports, the Labour Minister, Hon’ble Sri Bandaru Dattatreya has said that the final bill on labour code on wages, after being cleared by the inter-ministerial group, has been sent to the Cabinet and in all probability it will be introduced in the forthcoming Monsoon session of Parliament.
The Code on Wages Bill, which will ensure universal minimum wage for all industries and workers, has already been approved by the Finance Minister -led inter-ministerial panel on Labour.
The Code on Wages Bill also seeks to empower the Centre to set a minimum wage across sectors, and States will have to follow that. However, States will be able to provide higher minimum wage in their jurisdiction than fixed by the central government.
Under the Code on Wages, four wage-related statutes will be amalgamated including the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976. At present, there are about half a dozen definitions of wages in various Acts across the Centre and states.
Reacting to the development, PIA President Sri R. Krishnamurthy observed that while simplifying the wage-related statutes by amalgamating the various individual Acts was welcome so far as regulatory requirements was concerned, one will have to wait and see whether the minimum wage stipulation would be friendly to the micro and small entrepreneur or not. “At the State level, we have differences with the minimum wages stipulated by the State Government and have expressed our strong objections to it, while seeking a proper review taking into account the concerns of the small scale industries sector.
We hope that the new Code on Wages Bill proposed by the Centre will have a more benevolent attitude towards the MSME sector,” he said. At present, the states are free to fix wages for various categories of workers as there is no benchmark minimum wage which is applicable across the country.
After the amendment, the States will have to maintain a benchmark minimum wage fixed by the Centre.
The code will ensure universal minimum wage for all industries and workers. It will also cover those workers, who are getting monthly pay of higher than Rs 18,000. At present, laws on wages do not cover workers getting monthly wage of more than Rs 18,000.
Besides, the minimum wage will be applicable on all classes of workers. At present, it is applicable for scheduled industries or establishments in the law.
In July 2016, Rajasthan became the first state in India to introduce minimum wages for part time workers after which it became mandatory to pay 50 per cent of the prescribed a day minimum wage to a worker who works for less than four hours in a day. This brought even the part time workers under the Minimum Wages Act, 1948.[/vc_column_text][/vc_column][/vc_row]
