The Code on Wages, 2019 merges four key wage laws into a single framework, introducing standardised definitions, wider employee coverage, a national floor wage, simpler payment rules, equal pay provisions, and updated bonus and overtime norms. It aims to create a transparent, uniform wage system while easing employer compliance. The key highlights include:
‣ One Consolidated Law – Replaces the Minimum Wages, Payment of Wages, Payment of Bonus, and Equal Remuneration Acts
‣ Universal Applicability – Minimum wages apply to all employments
‣ Standardised Definition of “Wages” – Uniform formula with a 50% cap on exclusions
‣ National Floor Wage – States cannot set wages below the notified floor wage
‣ Predictable Payment Timelines – Monthly wages must be paid by the 7th
‣ Overtime at Double Rate – At least twice the normal wage
‣ Simplified Bonus Rules – Clear eligibility, set-on/set-off, and uniform calculation standards
