The Code on Wage Bill, 2019

Examine the main provisions of the code on wage bill, 2019. Do you think deciding minimum wage through a legislation would ultimately destroy jobs ? Critically Analyse ?

Recently parliament passed Code on wage bill, 2019 which replaced the existing acts payment of wages act, 1936 , the minimum wages act, 1948, payment of Bonus Act, 1965 and the equal remuneration act ,1976.

According to our Constitution, Article 43 in the DPSP mentions that the State shall endeavor to secure a living wage, a decent Standard of life and soul and Cultural Opportunities for all workers Origin of Minimum wage traced from us federal minimum wage, it was 85 cents per day so years ago.

According to Economic survey 2018-19 , 1,915 minimum wages defined for various scheduled job categories across different states in our country 90% of workers don’t even know about minimum wage. To address these issues code on wage bill, 2019 passed


It will increase the disposable income of Workers.

These bill paves way for regulated working conditions and pay for overtime work.

With the introduction of floor wage, it would decrease rural-urban ban gap.

At present, 45%. women are paid less salaries compared to men.

This bill will reduce gender disparities.

Bill provides uniform wage across the country includes all sectors.

According to periodic labor force Survey 2017-18, 44% of workers are paid less than minimum wage.


Minimum wage of Rs 178 declared from this bill less than 4th pay Commission Rs 700 .

The provision of uniform wage though out the Country would undermine Federalism.

There are many objectives present in this bill. Achieving so many lead to no one.

Increase in minimum wage will lead to increase in unemployment as studied by many scholars.

It will also decrease profit of firms.

Capital might move away from formal sector.

Though, some disadvantages the bill is a sliver bullet for slew of challenges faced by labors. Some methods like wage Subsidy scheme , incentives -for firm will improve the condition of labor.

Leave a Reply

Your email address will not be published.