Key Provisions - Code on Wages

No employer shall discriminate between employees on grounds of gender in matters relating to wages.

• Equal remuneration for same work or work of similar nature
• Experience can be a ground for discrimination
• Applies to ALL genders (male, female, transgender)
• No discrimination in recruitment except where employment of women is prohibited
• Prohibition of discrimination in conditions of employment
• Certain wage components shall not form part of the wages, while computing equal wages

The appropriate Government shall fix minimum wages for different classes of employees.

• Minimum wages applicable to all employments (organized and unorganized sectors)
• Components include basic rate of wages and allowances
• Different minimum wages may be fixed for different classes of work, age groups, and regions
• Review of minimum wages at intervals not exceeding 5 years

The Central Government shall fix the floor wage taking into account living standards of workers.

• No state government can fix minimum wage below the floor wage
• Floor wage may be different for different geographical areas
• Factors considered include minimum living standards of workers
• Binding on all states - creates national minimum benchmark

If exclusions from wages exceed 50% of total remuneration, the excess is added back to wages.

• Critical for calculating PF, ESI, gratuity, and bonus
• Prevents manipulation of wage structures to minimize contributions
• Employers must track all allowances and exclusions
• May require restructuring of compensation packages

Only specified deductions are permitted from wages, with a 50% cap.

• Maximum total deductions: 50% of wages
• Fines for acts or omissions specified by the employer
• Deductions for absence from duty
• Deductions for damage or loss caused by negligence
• Deductions for house accommodation and amenities
• Recovery of advances and loans
• Income tax and statutory deductions

Claims for unpaid wages must be filed within specified period.

• Limitation period: 3 years from date wages become due
• Single application can cover multiple employees
• Inspector-cum-Facilitator receives complaints
• Simplified claim procedure introduced

Appointment of Inspector-cum-Facilitators to ensure compliance.

• Dual role: enforcement AND advisory
• Powers of inspection and examination
• Web-based inspection scheme
• Advisory role to help employers comply with provisions
• Power to institute prosecutions
• Philosophy: Compliance facilitation over penalization