Let’s discuss on Major Impacts of the Code on Wages Act’2019 instead of Earlier laws of Wages.
From India, Kolkata
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4From India, Kolkata
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Definition of wages under the Code:
As per the Code – (i) basic pay, (ii) dearness allowance and (iii) retaining allowance have been included as components of 'wages'.
Further, the Code excludes the following components from the definition of wages: (a) bonus payments;
(b) value of the house-accommodation, supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by an order of the appropriate Government;
(c) employer contributions to any pension or provident fund;
(d) conveyance allowances;
(e) sums paid to the employee to defray special expenses on him by the nature of his employment;
(f) house rent allowance;
(g) remuneration payable under award or settlement between the parties or order of court or tribunal;
(h) overtime allowance;
(i) commission payable to employee;
(j) gratuity payments; and,
(k) retrenchment compensation or other retirement benefit payable to the employee or any ex-gratia payment made to the employee on the termination of his employment.
It is to be noted that for the purpose of equal wages to all genders and for the purpose of payment of wages, the emoluments specified in clauses (d), (f), (g) and (h) (specified above), should also be considered for computation of wages.
The Code prescribes that if the sum-total of the excluded components (apart from gratuity and retrenchment compensation) exceeds 50% (Fifty Percentage) (or such other percentage notified by the Central Government) of the total remuneration, then that portion of the amount exceeding 50% (Fifty percentage) (or such other percentage notified by the Central Government) is also to be calculated as 'wages' under the Code. Employers should be particularly wary of such a stipulation in devising salary structures for their employees.
From India, New Delhi
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As per the Code – (i) basic pay, (ii) dearness allowance and (iii) retaining allowance have been included as components of 'wages'.
Further, the Code excludes the following components from the definition of wages: (a) bonus payments;
(b) value of the house-accommodation, supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by an order of the appropriate Government;
(c) employer contributions to any pension or provident fund;
(d) conveyance allowances;
(e) sums paid to the employee to defray special expenses on him by the nature of his employment;
(f) house rent allowance;
(g) remuneration payable under award or settlement between the parties or order of court or tribunal;
(h) overtime allowance;
(i) commission payable to employee;
(j) gratuity payments; and,
(k) retrenchment compensation or other retirement benefit payable to the employee or any ex-gratia payment made to the employee on the termination of his employment.
It is to be noted that for the purpose of equal wages to all genders and for the purpose of payment of wages, the emoluments specified in clauses (d), (f), (g) and (h) (specified above), should also be considered for computation of wages.
The Code prescribes that if the sum-total of the excluded components (apart from gratuity and retrenchment compensation) exceeds 50% (Fifty Percentage) (or such other percentage notified by the Central Government) of the total remuneration, then that portion of the amount exceeding 50% (Fifty percentage) (or such other percentage notified by the Central Government) is also to be calculated as 'wages' under the Code. Employers should be particularly wary of such a stipulation in devising salary structures for their employees.
From India, New Delhi
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Dear Ranjeet,
As the Code on Wages, 2019 subsumes the existing Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976, it acts as a single monetary legislation relating to employment. Broadly speaking, it has the following merits in a nutshell over the existing laws which stand subsumed:
1) Removal of multiplicity of definitions promoting ease of understanding and interpretative convenience.
2) Removal of multiplicity of authorities.
3) Ensuring timely payment of wages to all employees.
4) Ease of compliance and
5) Modification of the role of the inspector to that of a facilitator.
To be specific, the following provisions of the Code on Wages, 2019 can be described as improvements over the subsumed four laws:
1) The definition of the term wages under Section 2(y) of the Code removes the confusion over the components of the wage structure, thereby eliminating disproportionate apportionment of components to reduce the fringe benefits of employment like statutory bonus, gratuity, retrenchment compensation.
2) The Code empowers the Central Government to fix National Floor Wages universally or region-wise and imposes restrictions on the fixation of minimum wages by the appropriate Governments not less than the NFW.
3) Conviction for sexual harassment has been included as a disqualification for eligibility for statutory bonus.
4) Resignation is also included in the final payment time limit for the settlement of dues.
5) The time limit for filing all claims under the Code has been extended to three years.
6) Inspectors are redesignated as facilitators with expanded jurisdiction. Web-based electronic inspections have been introduced to help employers with better compliance.
7) Penal provisions have been modified by providing for compounding of certain offenses and by an enhanced penalty of up to one lakh Rupees with imprisonment for up to 3 months in case of repeated offenses.
From India, Salem
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As the Code on Wages, 2019 subsumes the existing Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976, it acts as a single monetary legislation relating to employment. Broadly speaking, it has the following merits in a nutshell over the existing laws which stand subsumed:
1) Removal of multiplicity of definitions promoting ease of understanding and interpretative convenience.
2) Removal of multiplicity of authorities.
3) Ensuring timely payment of wages to all employees.
4) Ease of compliance and
5) Modification of the role of the inspector to that of a facilitator.
To be specific, the following provisions of the Code on Wages, 2019 can be described as improvements over the subsumed four laws:
1) The definition of the term wages under Section 2(y) of the Code removes the confusion over the components of the wage structure, thereby eliminating disproportionate apportionment of components to reduce the fringe benefits of employment like statutory bonus, gratuity, retrenchment compensation.
2) The Code empowers the Central Government to fix National Floor Wages universally or region-wise and imposes restrictions on the fixation of minimum wages by the appropriate Governments not less than the NFW.
3) Conviction for sexual harassment has been included as a disqualification for eligibility for statutory bonus.
4) Resignation is also included in the final payment time limit for the settlement of dues.
5) The time limit for filing all claims under the Code has been extended to three years.
6) Inspectors are redesignated as facilitators with expanded jurisdiction. Web-based electronic inspections have been introduced to help employers with better compliance.
7) Penal provisions have been modified by providing for compounding of certain offenses and by an enhanced penalty of up to one lakh Rupees with imprisonment for up to 3 months in case of repeated offenses.
From India, Salem
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Thanks to HR-Revolution & Mr. Umakanthan. M for your brief notes. However if any .pdf or .ppt file available kindly upload the same for details understanding.
From India, Kolkata
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From India, Kolkata
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@Ranjeetjha,
By reducing the number of prevailing Labour Laws and also by aiming labor reforms and far-reaching changes in the field of labor, out of the four Codes of Labor implemented by the Government of India, 3 Codes have been passed in Parliament. The Occupational Safety, Health and Working Conditions Code, 2020, the Industrial Relations Code 2020, and the Code on Social Security, 2020 are the three bills that have been approved in both Houses of Parliament. The Code of Wages, the fourth Code, was already passed in Parliament in the year 2019, and assent from the President was also received.
The definitions of words such as Employer, Employee, Establishment, and Wages are given equal definitions in all four Codes. Therefore, confusion and arguments arising out of these words shall come to an end. The process of registration is also simplified. An Establishment that is registered under one law need not apply for registration under the remaining laws.
From India, Aizawl
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By reducing the number of prevailing Labour Laws and also by aiming labor reforms and far-reaching changes in the field of labor, out of the four Codes of Labor implemented by the Government of India, 3 Codes have been passed in Parliament. The Occupational Safety, Health and Working Conditions Code, 2020, the Industrial Relations Code 2020, and the Code on Social Security, 2020 are the three bills that have been approved in both Houses of Parliament. The Code of Wages, the fourth Code, was already passed in Parliament in the year 2019, and assent from the President was also received.
The definitions of words such as Employer, Employee, Establishment, and Wages are given equal definitions in all four Codes. Therefore, confusion and arguments arising out of these words shall come to an end. The process of registration is also simplified. An Establishment that is registered under one law need not apply for registration under the remaining laws.
From India, Aizawl
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Hi Everyone,
Related to the topic of discussion - Impact of COW 2020 - while viewing a webinar on YouTube, I learned from one of the speakers that since "Occupier" and "Manager" have been clearly defined as "Employer" in the case of a factory, the owners of the factory who lease it are now protected from several vicarious liabilities, which was not the case earlier. However, upon further reading, it was found that the same definition is also present in the repealed act POW 1936.
I kindly request experts to shed some light on this.
Thanks and regards.
From India, Calcutta
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Related to the topic of discussion - Impact of COW 2020 - while viewing a webinar on YouTube, I learned from one of the speakers that since "Occupier" and "Manager" have been clearly defined as "Employer" in the case of a factory, the owners of the factory who lease it are now protected from several vicarious liabilities, which was not the case earlier. However, upon further reading, it was found that the same definition is also present in the repealed act POW 1936.
I kindly request experts to shed some light on this.
Thanks and regards.
From India, Calcutta
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Under the Code on Wages, scheduled employments have been abolished, and therefore all workers are covered under the Minimum Wages Act. The wage limit under the Payment of Wages Act is also removed to protect the wages of all 'employees'.
From India, Pune
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From India, Pune
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There is one point that I feel requires review. Settlement for exiting employees within 2 days from the last working day. I assume this is framed keeping in mind the Government sector. In the IT sector, there would be a number of assets and clearances that need to be done on the last working day before terminating the employee in the system. Given that the payroll has a defined pay cycle, this would lead to a daily process of settlements and can have an impact on the final pay as taxes would have to be recovered if the employee has not made his investments for the year at the time of exit.
From India, Bangalore
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From India, Bangalore
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Dear all,
Hoping to get some advice from experts as I am a bit confused. We have an employee whom we will be paying as below for 2020-21:
Monthly Basic: 14,450
Monthly HRA: 7,225
Monthly Conveyance: 1,600
Monthly special allowance: 14,150
TOTAL MONTHLY: 37,425
Yearly LTA+Medical (Fixed): 20,000
Yearly Bonus + Performance payment: 43,350 (ALMOST SIMILAR EVERY YEAR)
TOTAL ANNUAL: 512,450
Apart from this, we also pay gratuity in the group gratuity fund and employer PF.
What changes would we need to make to fit the new CODE OF WAGES?
From India, Aurangabad
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Hoping to get some advice from experts as I am a bit confused. We have an employee whom we will be paying as below for 2020-21:
Monthly Basic: 14,450
Monthly HRA: 7,225
Monthly Conveyance: 1,600
Monthly special allowance: 14,150
TOTAL MONTHLY: 37,425
Yearly LTA+Medical (Fixed): 20,000
Yearly Bonus + Performance payment: 43,350 (ALMOST SIMILAR EVERY YEAR)
TOTAL ANNUAL: 512,450
Apart from this, we also pay gratuity in the group gratuity fund and employer PF.
What changes would we need to make to fit the new CODE OF WAGES?
From India, Aurangabad
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Two points here - conveyance - 1600 and medical. Exemptions for these two components were replaced with a standard deduction. Most of the companies have removed these two components as part of the salary structure as there is no tax benefit. If these two components still are part of your compensation structure, ensure they are taxed.
From India, Bangalore
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From India, Bangalore
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Dear HBJ,
The monthly gross salary payable, which comprises of basic, HRA, and Special Allowance, is Rs. 37,425.00. The only inclusive component is basic, which falls short of 50% of the gross. Therefore, that amount should be taken out from the Special Allowance and added to the basic as wages for all purposes of calculation under the Code.
From India, Salem
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The monthly gross salary payable, which comprises of basic, HRA, and Special Allowance, is Rs. 37,425.00. The only inclusive component is basic, which falls short of 50% of the gross. Therefore, that amount should be taken out from the Special Allowance and added to the basic as wages for all purposes of calculation under the Code.
From India, Salem
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Thank you for the replies.
Mr. Venkatraman, yes, these allowances are given as wages and are taxed. We have just retained the old nomenclature.
Mr. Umakanthan, thanks for your inputs. We shall modify the salary structure accordingly.
From India, Aurangabad
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Mr. Venkatraman, yes, these allowances are given as wages and are taxed. We have just retained the old nomenclature.
Mr. Umakanthan, thanks for your inputs. We shall modify the salary structure accordingly.
From India, Aurangabad
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Dear HBJ,
Based on the data you have provided, it appears that the total cash payable to the employee is $512,450.00 per year, and the Employer's PF contribution is $20,808.00 per year. Therefore, the total cash is $533,258.00. 50% of this amount, which is $266,629.00, should be the wage (Basic + DA) per year. This translates to $22,219.00 per month, which can be rounded off to $22,300.00 per month. The rest of the amount will consist of monthly and yearly components other than Basic & DA as per the wage code.
Thanks & regards,
S K Bandyopadhyay (Howrah, WB)
From India, New Delhi
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Based on the data you have provided, it appears that the total cash payable to the employee is $512,450.00 per year, and the Employer's PF contribution is $20,808.00 per year. Therefore, the total cash is $533,258.00. 50% of this amount, which is $266,629.00, should be the wage (Basic + DA) per year. This translates to $22,219.00 per month, which can be rounded off to $22,300.00 per month. The rest of the amount will consist of monthly and yearly components other than Basic & DA as per the wage code.
Thanks & regards,
S K Bandyopadhyay (Howrah, WB)
From India, New Delhi
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Dear Mr. Bandyopadhyay,
According to Mr. Umakanthan, the basic needs to be 50% of the monthly salary of 37,425, which would amount to about Rs. 18,800 per month. However, you have also included annual allowances, bonus, and PF, making the monthly basic come to Rs. 22,300 per year. This shows a significant difference.
Can anyone please confirm which is the correct calculation as per the new Code of Wages? Should annual allowances, incentives, and PF also be considered as wages? If so, we would face a substantial burden of gratuity difference as well.
Thank you.
From India, Aurangabad
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According to Mr. Umakanthan, the basic needs to be 50% of the monthly salary of 37,425, which would amount to about Rs. 18,800 per month. However, you have also included annual allowances, bonus, and PF, making the monthly basic come to Rs. 22,300 per year. This shows a significant difference.
Can anyone please confirm which is the correct calculation as per the new Code of Wages? Should annual allowances, incentives, and PF also be considered as wages? If so, we would face a substantial burden of gratuity difference as well.
Thank you.
From India, Aurangabad
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Dear HBJ,
The confusion is about the quantum of wage (Basic & DA) - whether it is 50% of monthly gross or 50% of total remuneration payable to any employee, including the employer's PF contribution, bonus, etc.
For argument's sake, let us consider the wage as 50% of monthly gross. Now, in the exclusion list, there are employer's PF contribution, statutory bonus, etc.
In the proviso, it has been mentioned that "if the payments made by the employer to the employee under sub-clauses (a) to (i) exceed 50% of all the remuneration calculated under the clause, the amount which exceeds such 50% shall be deemed as remuneration and shall be accordingly added in wages under this clause." The employer's portion of PF, statutory bonus, etc. fall under sub-clauses (a) to (i).
Therefore, in your existing issue, if we add back the employer's portion of PF, bonus, etc. to the other side (other than Basic & DA), the Basic and DA will not be 50% of the monthly gross, thus not fulfilling the definition of wage as per the wage code.
Therefore, in my opinion, Basic & DA should be 50% of all the remuneration calculated under the clause.
You may cross-check with Tax Guru (ITAX), Mercer, Deloitte, etc., for the interpretation of wage as per the wage code.
Thanks & Regards,
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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The confusion is about the quantum of wage (Basic & DA) - whether it is 50% of monthly gross or 50% of total remuneration payable to any employee, including the employer's PF contribution, bonus, etc.
For argument's sake, let us consider the wage as 50% of monthly gross. Now, in the exclusion list, there are employer's PF contribution, statutory bonus, etc.
In the proviso, it has been mentioned that "if the payments made by the employer to the employee under sub-clauses (a) to (i) exceed 50% of all the remuneration calculated under the clause, the amount which exceeds such 50% shall be deemed as remuneration and shall be accordingly added in wages under this clause." The employer's portion of PF, statutory bonus, etc. fall under sub-clauses (a) to (i).
Therefore, in your existing issue, if we add back the employer's portion of PF, bonus, etc. to the other side (other than Basic & DA), the Basic and DA will not be 50% of the monthly gross, thus not fulfilling the definition of wage as per the wage code.
Therefore, in my opinion, Basic & DA should be 50% of all the remuneration calculated under the clause.
You may cross-check with Tax Guru (ITAX), Mercer, Deloitte, etc., for the interpretation of wage as per the wage code.
Thanks & Regards,
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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Dear HBJ,
So far as I am given to understand, "wages" or "salary" is the monetary compensation or that which can be computed in terms of money payable regularly in a certain periodicity as agreed in the contract of employment. Section 16 of the Code on Wages, 2019 also stipulates that no wage period shall exceed a month in any case. As such, it is distinctly different from "remuneration" or "income" for other statutory purposes like taxation, calculation of certain fringe benefits, etc.
Thus, the periodicity in which wages/salary could be payable to a paid employee or wage period is only a month at the maximum under any contract of employment. If we analyze the excluded components enumerated under sub-clauses (a) to (i) of section 2(y) of the Code in this backdrop, they are in the nature of additional financial payouts statutorily imposed on the employer proportionately based on the included components for the purpose of computation of bonus, contribution to EPF, and terminal benefits mentioned under sub-clauses (j) and (k). This premise of wages or salary to be computed per month only is also fortified by the definition of "wage worker" occurring under clause 2(90) of the Code on Social Security, 2020.
I suppose that under this context only you have mentioned the monthly gross salary in the example as Rs. 37,425.00 with the componential structure of Basic, Special Allowance, HRA, and Conveyance Allowance and raised the query. Of course, I do admit that in its attempt to simplify the definition of the term wages as uniformly applicable to all the four Labor Codes, the Code on Wages, 2019 has actually given room for interpretational tussle or hassle. I think that's how our learned friend Mr. Bandyopadhyay has interpreted the term in a way more or less analogous to C.T.C - well, perceptions can differ!
From India, Salem
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So far as I am given to understand, "wages" or "salary" is the monetary compensation or that which can be computed in terms of money payable regularly in a certain periodicity as agreed in the contract of employment. Section 16 of the Code on Wages, 2019 also stipulates that no wage period shall exceed a month in any case. As such, it is distinctly different from "remuneration" or "income" for other statutory purposes like taxation, calculation of certain fringe benefits, etc.
Thus, the periodicity in which wages/salary could be payable to a paid employee or wage period is only a month at the maximum under any contract of employment. If we analyze the excluded components enumerated under sub-clauses (a) to (i) of section 2(y) of the Code in this backdrop, they are in the nature of additional financial payouts statutorily imposed on the employer proportionately based on the included components for the purpose of computation of bonus, contribution to EPF, and terminal benefits mentioned under sub-clauses (j) and (k). This premise of wages or salary to be computed per month only is also fortified by the definition of "wage worker" occurring under clause 2(90) of the Code on Social Security, 2020.
I suppose that under this context only you have mentioned the monthly gross salary in the example as Rs. 37,425.00 with the componential structure of Basic, Special Allowance, HRA, and Conveyance Allowance and raised the query. Of course, I do admit that in its attempt to simplify the definition of the term wages as uniformly applicable to all the four Labor Codes, the Code on Wages, 2019 has actually given room for interpretational tussle or hassle. I think that's how our learned friend Mr. Bandyopadhyay has interpreted the term in a way more or less analogous to C.T.C - well, perceptions can differ!
From India, Salem
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Thank you, sirs, for your learned advice and interpretation. I think, at the moment, I will consider the definition of wages as a monthly payment and adjust the payment heads accordingly. With bonuses and yearly incentives considered, the gratuity contribution increases beyond a reasonable amount and does not seem justified in any way.
I appreciate the time taken by everyone to reply. Thank you once again.
From India, Aurangabad
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I appreciate the time taken by everyone to reply. Thank you once again.
From India, Aurangabad
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Monthly Gross 37,425/- and 50% of that is Basic & DA = 18,713/-. Therefore, other allowances are 18,713/-. Now in the exclusion list (a) & (c) - Statutory Bonus and Employer's portion of PF will be considered with other allowances. Let's say those amounts are 1000/- per month as statutory Bonus @8.33% (based on minimum wages of 12,000/-) and PF contribution, let's say on 15,000/- Basic & DA is 1800/- per month.
Therefore, the other allowances will be 18,713 + 1000 + 1800 = 21,513/- more than Basic and DA (18,713/-), not fulfilling the 50:50 condition of wage vs other allowances as per the definition of wage under codes. This is mathematics - no magic.
What will be the fate of my interpretation, only the future can say, but the above calculation cannot be changed until the Wage definition is changed.
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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Therefore, the other allowances will be 18,713 + 1000 + 1800 = 21,513/- more than Basic and DA (18,713/-), not fulfilling the 50:50 condition of wage vs other allowances as per the definition of wage under codes. This is mathematics - no magic.
What will be the fate of my interpretation, only the future can say, but the above calculation cannot be changed until the Wage definition is changed.
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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Hi Everyone,
Regarding the topic of the New-Wage Code 2019 implementation, I have a few questions:
a. With 50% being set up as the Basic for EPF compliance, is the ₹15,000/- limit still relevant?
b. What about the EPF contribution for those employees who had a higher basic, and both the employee and the employer were making EPF contributions based on the higher basic?
These points need clarification.
From India, Pune
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Regarding the topic of the New-Wage Code 2019 implementation, I have a few questions:
a. With 50% being set up as the Basic for EPF compliance, is the ₹15,000/- limit still relevant?
b. What about the EPF contribution for those employees who had a higher basic, and both the employee and the employer were making EPF contributions based on the higher basic?
These points need clarification.
From India, Pune
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Dear Ranjeet,
The answer to your 1st question is YES.
Regarding your 2nd question, the employer may or may not contribute a higher amount on the basic salary, typically restricted up to 15,000/-. However, employees can choose to contribute more voluntarily.
Thanks & Regards,
S. K. Bandyopadhyay (WB, Howrah)
From India, New Delhi
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The answer to your 1st question is YES.
Regarding your 2nd question, the employer may or may not contribute a higher amount on the basic salary, typically restricted up to 15,000/-. However, employees can choose to contribute more voluntarily.
Thanks & Regards,
S. K. Bandyopadhyay (WB, Howrah)
From India, New Delhi
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Hi all Do we have to consider contract labour as an 'employee' under Code on wages ? Thanks and regards
From India, Calcutta
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From India, Calcutta
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In the Code on Wages, there are two separate definitions of 'Contract Labour' and 'Employee.' The Contract Labour definition is the same as mentioned in the earlier Contract Labour (R & A) Act. However, the definition of Contract Labour in the Code on Wages has excluded workers from the definition of Contract Labour who are in regular appointments and receive increments and social security benefits. The said contract labours who are regularly appointed, receive increments, and social security are employees of the contractor, not contract labours.
To explain further with an example, companies like IBM or other large corporations take contracts from banks for the development of their software and deploy 300 to 500 employees at the bank premises under a contract. Based on the earlier definition of contract labour, they would fall under the definition of 'contract labour.' But with the exclusion mentioned in the current definition of 'contract labour,' such large companies do not need a labour license and are not required to follow the sections/rules applicable to contract labours.
From India, Pune
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To explain further with an example, companies like IBM or other large corporations take contracts from banks for the development of their software and deploy 300 to 500 employees at the bank premises under a contract. Based on the earlier definition of contract labour, they would fall under the definition of 'contract labour.' But with the exclusion mentioned in the current definition of 'contract labour,' such large companies do not need a labour license and are not required to follow the sections/rules applicable to contract labours.
From India, Pune
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Thanks actually I meant that at the end of Principal Employer whether the contract labour will be considered to treated as one of employee? regards
From India, Calcutta
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From India, Calcutta
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Penalty under Industrial Code 2020 for unlawful lay-off or retrenchment is Rs. 1,00,000/- to Rs. 10,00,000/-. For a subsequent offense, the penalty is Rs. 5,00,000/- to Rs. 20,00,000/- and imprisonment up to 6 months.
From India, Faridabad
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From India, Faridabad
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Under the IR Code 2020, the process of adjudication of disputes is complicated. The decision of the Tribunal shall be by consensus of the members. If there is a difference of opinion between the members, the matter will be referred to the appropriate government. The appropriate government shall appoint a judicial member of the other Tribunal, who shall hear the point(s) himself, and such points shall be decided according to the majority of the members of the Tribunal who have first heard the case, including the judicial member of the other Tribunal who heard the case thereafter.
From India, Faridabad
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From India, Faridabad
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Important changes in the Code on Wages:
1. Wider definition of appropriate government.
2. 50% allowances to be part of wages for Gratuity/PF.
3. Removal of the ceiling limit of wage for claiming unpaid wages under the Payment of Wages Act. Earlier, it was restricted to Rs. 24,000. Many employees whose wages were not paid by the employer were unable to file a claim case under the Payment of Wages Act.
4. Limitation period for filing a claim is increased from six months to three years.
5. National Floor Wage.
6. Appellate Authority provision included in the hearing of claim cases under the Minimum Wages Act and Payment of Wages Act. Earlier, the appeal was to be filed before the High Court.
7. Powers to officers of the Labour Department to impose a fine in the first offense after the hearing of parties.
8. Compounding of offenses before filing prosecution or after filing prosecution. Employers need not appear before court. Cases can be disposed of by paying a fine at the Labour office.
From India, Pune
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1. Wider definition of appropriate government.
2. 50% allowances to be part of wages for Gratuity/PF.
3. Removal of the ceiling limit of wage for claiming unpaid wages under the Payment of Wages Act. Earlier, it was restricted to Rs. 24,000. Many employees whose wages were not paid by the employer were unable to file a claim case under the Payment of Wages Act.
4. Limitation period for filing a claim is increased from six months to three years.
5. National Floor Wage.
6. Appellate Authority provision included in the hearing of claim cases under the Minimum Wages Act and Payment of Wages Act. Earlier, the appeal was to be filed before the High Court.
7. Powers to officers of the Labour Department to impose a fine in the first offense after the hearing of parties.
8. Compounding of offenses before filing prosecution or after filing prosecution. Employers need not appear before court. Cases can be disposed of by paying a fine at the Labour office.
From India, Pune
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Dear All,
As per the new wage code bill, what will be the new salary structure if someone is currently drawing this salary structure/package monthly, with a CTC of 60k per month?
- Basic: 24000
- HRA: 12000
- City Comp Allowance: 7200
- Uniform: 3000
- Special Allowance: 10146
- Variable Pay: 2500
Kindly share the new structure so that the take-home pay will not decrease or be affected as per the new wage code bill.
Gratuity: 1154
Thank you.
From India
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As per the new wage code bill, what will be the new salary structure if someone is currently drawing this salary structure/package monthly, with a CTC of 60k per month?
- Basic: 24000
- HRA: 12000
- City Comp Allowance: 7200
- Uniform: 3000
- Special Allowance: 10146
- Variable Pay: 2500
Kindly share the new structure so that the take-home pay will not decrease or be affected as per the new wage code bill.
Gratuity: 1154
Thank you.
From India
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Dear All,
Will the COW 2020 Impact start from April 1st? I cannot find any notification; instead, a draft code notification is available on the website. Can anyone help me out? Should we calculate the salary structure accordingly, or should I wait for the final notification?
Thank you.
From India, Indore
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Will the COW 2020 Impact start from April 1st? I cannot find any notification; instead, a draft code notification is available on the website. Can anyone help me out? Should we calculate the salary structure accordingly, or should I wait for the final notification?
Thank you.
From India, Indore
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Comparison and Analysis of Minimum Wages Revision in Delhi-01.04.12. pdf
FORM.V-format WAGE SLIPS (Rule 39-CODE ON WAGES RULES 2021).docx