Minimum Wages Applies to All Industries – Code on Wages – Lets Talk Compliance

Exclusion portion of salary cannot go beyond 50%

“The Code on Wages, when getting implemented, is likely to bring in some significant changes in regards to minimum wages. Currently, the Minimum Wages Act will apply only to those industries which are listed in the Schedule attached to the Act. There is no obligation too on the employers to pay the National Floor Level Minimum Wages. Whereas, as per the new code, the minimum wages will apply to all types of industries. And, the Floor Wages will be fixed by the Central Government while the Appropriate Government will continue to fix the minimum wages. The catch is, the minimum wages cannot be less than the floor wages. The floor wages can also vary from one geography to another. Thus, the scope of minimum wages is getting widened and the employees will have a minimum guaranteed payment in the form of floor wages”.

K Varadan,

Chief Consultation Officer,
Aparajitha Corporate Services Private Limited

Disclaimer:  The article represents the opinions of the author and the author is solely responsible for the facts, cases, and legal or otherwise reproduced in the article.

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