Changes In Wage Code

PWA: Provisions of the Act are applicable to All employees are protected without any
those employees drawing less than Rs wage limit including supervisor and
24,000. It applies to Factory, Railway, Motor/Air managers. It applies to all Establishments
Transport Service , Dock, Mine, Plantation, including Factory.
Workshop, Construction Activities and
Central/State Government Notified
Establishments .
•Provisions of the Act are applicable only to the Applicable to all including organized and
SCHEDULED EMPLOYMENTS. •To fix minimum unorganized sector employees.
wages in an employment which has more than
1000 workers to be first included in the
SCHEDULE
Provisions of the Act are applicable to EVERY The provisions of this Chapter shall apply to
FACTORY and establishment employed more such establishment in which 20 or more
than 20 ( in Kar-10) persons. persons are employed or were employed on
any day during an accounting year.
An Act to Provide for the payment of equal Applicable to all employees irrespective of
remuneration to men and women workers and Gender
for the prevention of discrimination, on the
ground of sex, against women in the matter of
employment and for matters connected
therewith or incidental thereto

wages" means all remuneration whether by way of salaries, allowances or otherwise, expressed in
terms of money or capable of being so expressed

includes,— (i) basic pay; (ii) dearness allowance; and (iii) retaining allowance, if any,

if any, but does not include

bonus payable

value of any house-accommodation, or of the supply of light, water, medical attendance or other
amenity or of any service

any contribution paid by the employer to any pension or provident fund

conveyance allowance

special expenses entailed on him by the nature of his employment;

house rent allowance

remuneration payable under any award or settlement

overtime allowance;

commission payable to the employee;

any gratuity payable on the termination of employment

retrenchment compensation
 - Employee

Payment of Wages Minimum Wages Payment of Bonus Code on Wages-2019

Act1936 Act1948 Act1965
legal representative of any person who is employee” means any employee" means, any person
a deceased employed employed skilled or person (other than an employed on wages by an
person; drawing less unskilled, manual or apprentice) employed on establishment to do any skilled,
than Rs 24,000. clerical, in a scheduled a salary or wage not semi-skilled or unskilled,
employment exceeding Rs.21,000 per manual, operational,
month in any industry to supervisory, managerial,
do any skilled or unskilled administrative, technical or
manual, supervisory, clerical
managerial,
administrative, technical
or clerical work

Employer

employer" means a person who employs, whether directly or through any person, one or more employees in
his establishment, is carried on by any department of the Central Government or the State Government,-
Head Of The Department.
establishment carried on by a local authority- the chief executive of that authority
factory,- manager of the factory
any other establishment ultimate control over the affairs of the establishment a manager or managing
director; (iii) contractor; and (iv) legal representative of a deceased employer;

“Establishment" means any place where any industry, trade, business, manufacture or occupation is carried
on and includes Government establishment

worker" means any person (except an apprentice employed in any industry to do any manual, unskilled, skilled,
technical, operational, clerical or supervisory, working journalists, sales promotion employees
but does not include any such person Air Force Act, 1950, or the Army Act, 1950, or the Navy Act
who is employed in the police service or as an officer or other employee of a prison who is employed mainly in a
managerial or administrative capacity; supervisory capacity drawing wage of exceeding Rs.15,000.00 per month
The contractor", produce a given result for the establishment, other than a mere supply of goods or articles
of manufacture to such establishment, through contract labor;supplies contract labor for any work of the
establishment s mere human resource and includes a sub-contractor;

Contract labour when he is hired in or in connection with such work by or through a contractor, with or
without the knowledge of the principal employer and includes inter-State migrant worker but does not
include a worker (other than part-time employee) who

) "accounting year" means the year commencing on the 1st day of April ;

"same work or work of a similar nature" means work in respect of which the skill, effort, experience and
responsibility required are the same, when performed under similar working conditions by employees and the
difference if any, between the skill, effort, experience and responsibility required for employees of any gender, are
not of practical importance in relation to the terms and conditions of employment; employer shall, reduce the rate
of wages of any employee.
fixation of minimum rate of wages skill of workers required for working under the categories of unskilled,
skilled, semi-skilled and highly-skilled or geographical area certain category of workers, take into account
their arduousness of work like temperature or humidityThe appropriate Government shall review or revise
minimum rates of wages ordinarily at an interval not exceeding five years

S-9 Fixation of Floor Wages by Central Government (1) The Central Government shall fix floor wage taking into
account minimum living standards of a worker in such manner as may be prescribed: Provided that different
floor wage may be fixed for different geographical areas. (2) The minimum rates of wages fixed by the
appropriate Government under section 6 shall not be less than the floor wage and if the minimum rates of
wages fixed by the appropriate Government earlier is more than the floor wage, then, the appropriate
Government shall not reduce such minimum rates of wages fixed by it earlier.

S-17 Time limit for payment of wages (1) The employer shall pay or cause to be paid wages to the
employees, engaged on (i) daily basis, at the end of the shift; (ii) weekly basis, on the last working day of the
week, that is to say, before the weekly holiday; (iii) fortnightly basis, before the end of the second day after
the end of the fortnight; (iv) monthly basis, before the expiry of the seventh day of the succeeding month.
(2) Where an employee has been— (i) removed or dismissed from service; or (ii) retrenched or has resigned
from service, or became unemployed due to closure of the establishment, the wages payable to him shall
be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his
resignation.

The total amount of deductions which may be made under subsection (2) in any wage period from the wages
of an employee shall not exceed fifty per cent. of such wages.
No fine imposed on any employee shall be recovered from him by instalments or after the expiry of ninety
days from the day on which it was imposed.3%

Any demand for bonus in excess of the bonus referred to in sub-section (1), either on the basis of production or
productivity in an accounting year for which the bonus is payable shall be determined by an agreement or
settlement between the employer and the employees, subject to the condition that the total bonus including the
annual minimum bonus referred to in sub-section (1) shall not exceed twenty per cent. of the wages earned by
the employee in the accounting year

Disqualification for bonus. Notwithstanding anything contained in this Code, an employee shall be
disqualified from receiving bonus under this Code, if he is dismissed from service for
(a) fraud;
(b) or (b) riotous or violent behaviour while on the premises of the establishment
(c) ; or © theft,
(d) misappropriation or sabotage of any property of the establishment; or
(e) conviction for sexual harassment
Time limit for payment of bonus (1) All amounts payable to an employee by way of bonus under this Code
shall be paid by crediting it in the bank account of the employee by his employer within a period of eight
months from the close of the accounting year. Provided that if, there is a dispute for payment at the higher
rate, the employer shall pay eight and one-third per cent. of the wages earned by the employee as per the
provisions of this Code within a period of eight months from the close of the accounting yea

CHAPTER-6 PAYMENT OF DUES, CLAIMS AND AUDIT Under PWA Responsibility for payment of various dues. (1)
Every employer shall pay all amounts required to be paid under this Code to every employee employed by
him: Provided that where such employer fails to make such payment in accordance with this Code, then, the
company or firm or association or any other person who is the proprietor of the establishment, in which the
employee is employed, shall be responsible for such payment.

Claims under Code and procedure there of. S-45(1) The appropriate Government may, by notification,
appoint one or more authorities, not below the rank of a Gazetted Officer, to hear and determine the claims
which arises under the provisions of this Code. Decide the claim within a period of 3 months

CLAIM FILING BEFORE THE AUTHORITY S-45 (4) Any application before the authority for claim referred to in
sub-section (1) may be filed by,–– (a) the employee concerned; or
(b) any Trade Union registered under the Trade Unions Act, 1926 of which the employee is a member; or
(c) the Inspector-cumFacilitator. Within a period of 3 Year

P.W.A -1936 M.W.A-1948 P.B.A-1965 E.R.A-1976 Code On Wages-

2019
DISTRICT J.M.F.C DISTRICT S-33 (C) OF ID ACT DISTRICT
COLLECTOR COLLECTOR COLLECTOR

P.W.A -1936 M.W.A-1948 P.B.A-1965 E.R.A-1976 Code On Wages-

2019
DISTRICT COURt ALC Holding the post at
least one rank
higher than the
authority referred.
Disposal of the Disposal of the Disposal of the Disposal of the Disposal of the
Case: No period Case: No period Case: No period Case: No period Case: Decide
mentioned mentioned mentioned mentioned within a period of
3 months
Appellant has to NIL NIL NIL NIL
deposit ordered
amount before
filing Appeal

Records, returns and notices. very employer of an establishment person employed, muster roll,
wage Every employer shall display a notice on the notice board g the abstract of this Code,
category-wise wage rates of employees, wage period, day or date and time of payment of wages,
and the name and address of the Inspector-cumFacilitator Every employer shall issue wage slips
The Inspector-cum-Facilitator generation of a web-based inspection and calling of information relating to
the inspection under this Code electronically.

No court shall take cognizance of any offence punishable under this Code, save on a complaint made by or
under the authority of the appropriate Government or an officer authorised in this behalf, or by an
employee or a registered Trade Union registered under the Trade Unions Act, 1926 or an Inspector-cum-
Facilitator.

pays to any employee less than the amount due to such employee under the provisions of this Code shall
be punishable with fine which may extend to 50,000.00 rupee. within five year imprisonment for a term
which may extend to three months or with fine which may extend to 1 lakh rupees,
contravenes any other provision of this Code or any rule made or order made or issued 20,000.00 rupees
within five year 40,000.00 rupees
non-maintenance or improper maintenance of records 10,000.00 rupees;

Manner of calculating the minimum rate of wages The minimum rate of wages shall be fixed on
the day basis keeping in view the following criteria , namely:- (I) the standard working class family
which includes a spouse and two children apart from the earning worker; an equivalent of three
adult consumption units; (II) A net intake of 2700 calories per day per consumption unit; (III) 66
meters cloth per year per standard working class family; (IV) Housing rent expenditure to
constitute 10 per cent of food and clothing expenditure; (V) Fuel, electricity and other
miscellaneous items of expenditure to constitute 20 percent of minimum wage; and (VI)
Expenditure for children education, medical requirement, recreation and expenditure on
contingencies