Vidhi Codex

The Code on Wages, 2019

The Code on Wages, 2019

Labour201969 sections9 chapters

The Code on Wages, 2019, simplifies and consolidates India's labor laws regarding employee compensation. It regulates the fixation of minimum wages, the distribution of annual bonuses, overtime pay, and wage payment schedules, while strictly prohibiting gender discrimination in salary decisions. The law applies to almost all employees and workers nationwide across diverse industries and commercial establishments, excluding the armed security forces. This legislation matters because it establishes a mandatory national floor wage to economically uplift vulnerable workers, protects employees from unauthorized salary deductions, guarantees timely payouts, and simplifies regulatory compliance by replacing four outdated laws with one unified national framework.

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Chapter I PRELIMINARY →

  1. 1Short title, extent and commencement
  2. 2Definitions
  3. 3Prohibition of discrimination on ground of gender
  4. 4Decision as to disputes with regard to same or similar nature of work

Chapter II MINIMUM WAGES →

  1. 5Payment of minimum rate of wages
  2. 6Fixation of minimum wages
  3. 7Components of minimum wages
  4. 8Procedure for fixing and revising minimum wages
  5. 9Power of Central Government to fix floor wage
  6. 10Wages of employee who works for less than normal working day
  7. 11Wages for two or more classes of work
  8. 12Minimum time rate wages for piece work
  9. 13Fixing hours of work for normal working day
  10. 14Wages for overtime work

Chapter III PAYMENT OF WAGES →

  1. 15Mode of payment of wages
  2. 16Fixation of wage period
  3. 17Time limit for payment of wages
  4. 18Deductions which may be made from wages
  5. 19Fines
  6. 20Deductions for absence from duty
  7. 21Deductions for damage or loss
  8. 22Deductions for services rendered
  9. 23Deductions for recovery of advances
  10. 24Deductions for recovery of loans
  11. 25Chapter not to apply to Government establishments

Chapter IV PAYMENT OF BONUS →

  1. 26Eligibility for bonus, etc.
  2. 27Proportionate reduction in bonus in certain cases
  3. 28Computation of number of working days
  4. 29Disqualification for bonus
  5. 30Establishments to include departments, undertakings and branches
  6. 31Payment of bonus out of allocable surplus
  7. 32Computation of gross profits
  8. 33Computation of available surplus
  9. 34Sums deductible from gross profits
  10. 35Calculation of direct tax payable by employer
  11. 36Set on and set off of allocable surplus
  12. 37Adjustment of customary or interim bonus against bonus payable under this Code
  13. 38Deduction of certain amounts from bonus payable
  14. 39Time limit for payment of bonus
  15. 40Application of this Chapter to establishments in public sector in certain cases
  16. 41Non-applicability of this Chapter

Chapter V ADVISORY BOARD →

  1. 42Central Advisory Board and State Advisory Boards

Chapter VI PAYMENT OF DUES CLAIMS AND AUDIT →

  1. 43Responsibility for payment of various dues
  2. 44Payment of various undisbursed dues in case of death of employee
  3. 45Claims under Code and procedure thereof
  4. 46Reference of disputes under this Code
  5. 47Presumption about accuracy of balance sheet and profit and loss account of corporations and companies
  6. 48Audit of account of employers not being corporations or companies
  7. 49Appeal
  8. 50Records, returns and notices

Chapter VII INSPECTORY-CUM-FACILITATOR →

  1. 51Appointment of Inspector-cum-Facilitators and their powers

Chapter VIII OFFENCES AND PENALTIES →

  1. 52Cognizance of offences
  2. 53Power of officers of appropriate Government to impose penalty in certain cases
  3. 54Penalties for offences
  4. 55Offences by companies
  5. 56Composition of offences

Chapter IX MISCELLANEOUS →

  1. 57Bar of suits
  2. 58Protection of action taken in good faith
  3. 59Burden of proof
  4. 60Contracting out
  5. 61Effect of laws agreements, etc., inconsistent with this Code
  6. 62Delegation of powers
  7. 63Exemption of employer from liability in certain cases
  8. 64Protection against attachments of assets of employer with Government
  9. 65Power of Central Government to give directions
  10. 66Saving
  11. 67Power of appropriate Government to make rules
  12. 68Power to remove difficulties
  13. 69Repeal and savings

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