4 Labour Codes: Current Status

Labours CodeDraft Realise for
HouseDate of IntroductionPassed in LoksabhaPassed in Rajya SabhaReferred to Committee Assent Date | Gazette Notification | Act No
Code on Wages 2019
The Draft Code on Wages(Central) Rules 2019
1st Nov 2019Loksabha23rd July 201930th July 20192nd Aug 2019 8th Aug 2019 Passed
Code on Social Security 2019 9th Dec 2019Loksabha11th Dec 20191st Jan 2020Awaiting
Code on Industrial Relations 2019 28th Nov 2019Loksabha28th Nov 20191st Jan 2020Awaiting
Code on Occupational Safety, Health and Working Conditions 2019 10th July 2019Loksabha23rd July 20197th Oct 2019Awaiting

Code on Wages – 2019

The Code on Wages Bill includes four acts

  • Minimum Wages Act, 1948
  • Payment of Wages Act, 1936
  • Equal Remuneration Act, 1976
  • Payment of Bonus Act, 1965

The code gives common definitions for all acts mentioned above and so the effective sections are merged for compliance management.
The following rules which will complement the code have not yet been released. These rules will have the forms and compliances, which can be common across the acts.


  • Employee definition has been amended to include Managers, Supervisors and Administrative persons.
  • No discrimination among male, female and transgender employees on the grounds of sex in the matter of wages
  • Disputes to be decided by the authority notified

Minimum Wages:

  • The minimum wages for different Scheduled Employments will be ended. There could also be one common wage for all employments which can also include previously not included employments
  • The Central Government shall fix floor wage considering the minimum living standards of a worker and in this regard, different floor wages may be fixed for different geographical areas. The minimum rates of wages fixed by the appropriate Government shall not be but the ground wage and if the minimum rates of wages fixed by the appropriate Government earlier is quite the ground wage, then, the Central/State Government shall not reduce such minimum rates of wages fixed by it earlier

Payment of Wages:

  • Wages will be deposited in the bank account of the employees, electronically or by cheque. Wages are often paid in cash, up to an amount which can be notified by the acceptable government
  • Payment of wages has been made applicable to all classes of establishments and employees. Previously only employees earning but INR 24,000 per month were covered and establishments defined or notified were covered

Equal Remuneration:

-The Act has been summarized in the code, there are no changes to the provisions.
Payment of Bonus

-Only employees earning monthly salaries below the amount notified by the appropriate Government will be eligible for the bonus

– An employee will be disqualified for a bonus if he/she is dismissed from service on conviction of sexual harassment

– The bonus shall be paid by crediting the sum eligible in the bank account of the employee

– The bonus linked to productivity has been discontinued. Performance-based bonus without ceiling limit has been introduced, rules are yet to be prescribed

Code on Social Security 2019:

Ministry of Labour and Employment has prepared a preliminary draft of the Code on Social Security & Welfare by merging all existing Labour Laws related to Social Security (Total 15 Labour Laws including Employees Provident Fund Act, Employees State Insurance Act, Maternity Benefit Act, Payment of Gratuity Act, Employees Compensation Act, Unorganised Social Security Act and various Welfare Cess / Fund Acts).

Labour Code on Industrial Relations:

Code on Industrial Relations was earlier drafted and put on the Website of the Ministry of Labour & Employment inviting comments of the stakeholders/public. These Codes are under consideration of the Government at present.

Labour Code on Occupational Safety, Health and Working Conditions:

The Ministry of Labour and Employment has prepared a preliminary draft on Code on Occupational Safety, Health and Working Conditions, 2018, by merging 13 labour laws relating to safety and health standards, health and working conditions, welfare provisions for the employees and leave and hours of work. Some important labour laws among the 13 include The Factories Act, 1948; The Mines Act, 1952; The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996; The Contract Labour (Regulation and Abolition) Act, 1970; The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; Sales Promotion Employees (Condition of Service) Act, 1976.

Notifications:HR Ignite

HR Ignite Services:-

HR Practical Training


Click on the link to Join Our WhatsApp Groups for HR updates & HR Jobs:

-The Moment you think you are out of Resources; you still have one thing, Will to Win.Ignite it

Leave a Reply

%d bloggers like this: