Categories: Business

know what is the government formula for minimum wages

Photo: PTI

government formula for minimum wages

new Delhi. The Central Government is trying to make the Law Code of Wages (Bill on Code) 2019 passed last year into a law. The central government has asked people to provide suggestions and objections to the proposed legislation by 24 August. Thus, 12 more days will be taken. The government has come out with a special formula for fixing the minimum wage on a daily basis in this draft. After coming to the ground of the law related to minimum wages, about 50 crore workers in the country are said to be benefitted.

"After taking suggestions and objections, the government will consider them on merit basis," said an official of the Ministry of Labor and Employment. If any stakeholder has to make objections and suggestions, then he can make available to Deputy Director MA Khan, Assistant Director Rachna at Ministry of Labor and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi.

This will calculate the minimum wage

The proposed draft of the Wages Code Act 2019 sets out the formula for fixing the minimum wage on a daily basis. It considers husband, wife and their two children as the norm of a working family. It has been estimated to consume 27 hundred calories of food per day per member, use of 66 meters of clothes in a year, ten percent of total expenditure on food and clothing on residential rentals.

At the same time fuel, electricity and other items will be 20 percent of the minimum wage. Apart from this, the expenses of education of children, medical requirements, entertainment and other contingencies have been described as 25 percent of the minimum wage. Based on all this, the minimum wage and salary will be calculated. The proposed draft states that while fixing the minimum rate of wages under Section 6 of the Pay Code, the Central Government will divide the respective geographical area into three classes Metropolitan, Non-Metropolitan and Rural area.

What is the Pay Code ActThe

In August 2019, the Wages Code Act was passed by both houses of parliament. Suggestions and objections have been invited to publish its draft in July this year till 24 August 2020. The Act guarantees minimum wages to workers. The special thing is that last year, the Central Government passed this bill as a major step towards labor reforms. This one law will be replaced by a total of four laws. In place of Minimum Wages Act 1948, Wage Payment Act 1936, Bonus Payment Act 1965, Uniform Compensation Act 1976, it is becoming the Wage Code.

This post was published on August 12, 2020 8:24 pm

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