IAS Gyan

Daily News Analysis

Govt notifies draft rules for Code on Wages

10th July, 2020 Economy

Context:

  • The Labour and Employment Ministry has notified the draft Code on Wages (Central) Rules under the Code on Wages, 2019.

Objective:

  • Fix a national floor minimum wage based on minimum living standard including food, clothing, housing and any other factors prescribed by the government.

Rules:

  • The Centre has reduced normal working hours in a day to eight hours from nine proposed in the earlier version released last November.
  • Provisions of Factories Act will not be affected by this rule.
  • Net intake of 2,700 calories per day, 66 meters cloth per year per standard working class family, housing rent expenditure as 10 per cent of food and clothing expenditure, three adult consumption unit are some of the factors that would determine the fixation of the national minimum wage.
  • the Centre shall constitute a technical committee which would advise on the skill categories
  • An advisory board will recommend the minimum wage.

Reference: https://indianexpress.com/article/business/govt-notifies-draft-rules-for-code-on-wages-6498595/#:~:text=The%20Labour%20and%20Employment%20Ministry,factors%20prescribed%20by%20the%20government.