Code on Wages lacks clear policy outcome
- Essential Services
- by Taapsi Kohli
- 19 Sep, 2019
India is recognised to be one of the first developing countries to have introduced minimum wage policies through the Minimum Wages Act in 1948. Several more Bills and Acts contributed to refining the policies aimed at wage workers. However, due to diverse socio-economic conditions across several states, the implementation process was complicated and led to the existence of 1709 rates in India.
The Code on Wages 2019 (Bill No. 184) introduced in the Lok Sabha by the Minister of Labour, Mr. Santosh Gangwar, acts as a ray of hope for the 195 million wage workers in India. The Bill seeks to regulate wage and bonus payments in all employment where any activity of trade, business or manufacturing is carried out. The Government has acknowledged and accepted 17 out of 24 recommendations presented by the Standing Committee which had previously scrutinised the Code on Wages introduced in the Lok Sabha in 2017.
The Code on Wages subsumes four previously existing laws: the Payment of Wages Act (1936), Minimum Wages Act (1984), Payment of Bonus Act (1965), and, Equal Remuneration Act (1976). It is set to be applicable for all employees across different industries. While the Centre will be responsible for making decisions for employments such as Railways and Mines among others, the State Governments will make decisions for all other employments. There has been a debate on what qualifies as ‘wage’ and what does not as this grey area has given employers an upper hand and caused them to treat employees unfairly.
This Code of Wages specifies that wages include salary, allowance or any other element expressed in monetary terms. It would not include any bonuses owed to employees or travelling allowance among others. Furthermore, the Code on Wages also specifies penalties for offences committed by employers like paying less than the set wages or for breaching any provision of the Code. The penalties differ depending on the nature of offence with the maximum penalty being sentenced to jail for three months along with a fine of Rs.1 lakh.
We can appreciate the Standing Committee as well as the Lok Sabha for being conscious of the loopholes and grey areas that are used by employers to exploit workers, and therefore drawing up a Bill that enforces laws to strengthen employees. Two specific clauses, moreover, focus on gender equality and inclusiveness. The Code forbids gender discrimination in matters concerning wages and recruitment of employees for the same or similar sort of work. Work of similar nature is characterised by the skill, effort, experience and responsibility required for the same work regardless of the gender.
Another aspect that the Code of Wages indirectly addresses is the sustainability of this project. It proposed that a tripartite committee comprising of representatives of employers, trade unions and state governments would be included and given the responsibility to fix a floor wage for workers throughout the country. The representation of diverse groups brings stability into the decision that is being made which will affect all employees at large.
While the Code on Wages is a step towards the right direction, it comes with its own pitfalls and unanswered questions. In India, it is estimated that small and unorganised businesses employ around 500 million people. While the new Bill seeks to cover all employees, there would be issues of compliance. Firstly, implementing and maintaining surveillance over small and unorganised businesses across different States is a task that would not only require great planning but also the investment of resources and energy by the Centre and States. Secondly, in a situation where businesses are reeling under the bearing of a speedily passed Goods and Services Tax (GST) system, the implementation of this new requirement will impose higher costs for businesses to bear.
Furthermore, on the one hand, the Code on Wages Bill is hoping to correct a diverse range of issues for the employees. However, scholars have argued that in a public policy setting, an instrument must have one clear goal. The Code ambitiously seeks to resolve issues related to all essential elements related to wages, equal remuneration, timely payments and bonuses and brings together the four aforementioned Acts together into one. To add to that, the Centre is to fix a floor wage, somehow factoring in the differing living standards of workers across the country.
While the Centre is processing and tackling the task of implementation, businesses and the general public need to start understanding the complicated system of wages set by the Code that will depend on facets like geographical areas. Industry bodies such as CII continue to argue in favour of States having the power to decide minimum wages. However, this would contribute to the complexities of the wage structure. The International Labour Organization argues that greater institutional capacity is the foremost requirement for more complex structures to be implemented.
It is difficult to comprehend the major agenda of this Bill as it fails to focus on one issue and explain what the government wishes to do. Is the code supposed to tackle increasing inequality? Can we expect the code to improve living conditions through increased wages and increased employability? It appears that only time will tell.
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Oct 24, 2019 | Avantika
'Initially the men opposed. They thought we women were being disruptive.'
Oct 1, 2019 | Avantika
Tax havens resist reforms one year on from Panama Papers exposé
Oct 1, 2019 | Avantika
इख़्तियार
Oct 24, 2019 | Avantika
Lessons from the Grassroots
Sep 10, 2019 | Avantika
This is What Child Marriage Looks Like
Nov 18, 2019 | Avantika
Oxfam India Held Youth Festivals In Lucknow And Raipur
Sep 9, 2019 | Avantika
Oxfam at the North-East Disaster Risk Reduction Conclave 2017
Sep 9, 2019 | Avantika
Finding Solutions to Early and Forced Marriage
Sep 27, 2019 | Avantika
Silence Has No Honour
Sep 27, 2019 | Avantika
Solidarity Is Our Weapon- The International Women’s Strike
Oct 24, 2019 | Avantika
4 reasons why Oxfam supports the International Women’s Strike on the 8th March
Oct 24, 2019 | Avantika
Union Budget 2017-18: Neglected Social Sector
Sep 10, 2019 | Avantika
Putting Data at the Heart of Business Responsibility
May 13, 2019 | Avantika
Mainstreaming DRR in Local Development Plans to Reduce Aid Dependency
Oct 1, 2019 | Avantika
Union Budget 2017-18: A Look at the Health Sector
Apr 5, 2019 | Avantika
खेल - जेण्डर आधारित असमानताओं को उजागर करने को एक सषक्त माध्यम
Apr 5, 2019 | oxfamadmin
Why Brazil should not take a U-turn on its health system
Oct 7, 2019 | Avantika
Your questions answered: Oxfam’s Inequality report
Oct 1, 2019 | Avantika
Unpacking the Risks of Doing Business in India
Nov 14, 2019 | Avantika
We Never Learn
Sep 27, 2019 | Ravi
Promote men’s involvement for changing social norms
Oct 24, 2019 | Avantika
Ten years of the Forest Rights Act: Opportunity lost?
Oct 1, 2019 | oxfamadmin
Meet the Bravehearts Standing Up Against Domestic Violence
May 27, 2020 | oxfamadmin
Addressing Violence Against Women and Girls the SAARC Way: Combat Human Trafficking
Sep 10, 2019 | oxfamadmin
Oxfam India’s journey from programme to campaign
Oct 24, 2019 | oxfamadmin
सामाजिक मान्यताओं को चुनौती देता संगठन
Dec 5, 2019 | oxfamadmin
Changing The World – One Couple At A Time
Oct 24, 2019 | oxfamadmin
A Lesson on Education from Uttar Pradesh
Oct 7, 2019 | oxfamadmin
Fair Sharing of Mining Revenue for the Tribals
Oct 24, 2019 | oxfamadmin
An Open Letter to Chhotu, Munna and Bachcha
Jun 12, 2020 | oxfamadmin
Educating the Educators
Sep 27, 2019 | oxfamadmin
10 Years of Domestic Violence Act: The Way Ahead
Oct 24, 2019 | oxfamadmin
Oxfam Best Film on Gender Equality Award Gets Grand Reception
Sep 27, 2019 | oxfamadmin
Wrestling Social Norms Out
Oct 3, 2019 | oxfamadmin
The Toilet Conundrum
Oct 24, 2019 | oxfamadmin
Inequality in India: what's the real story?
Sep 27, 2019 | oxfamadmin
Making surface water safe for drinking
Oct 1, 2019 | oxfamadmin
Quality Education- The unfinished agenda of RTE Act
Sep 27, 2019 | oxfamadmin
Tale of Two Women
Sep 27, 2019 | oxfamadmin
Prioritising the Health of our Children
Oct 24, 2019 | oxfamadmin
Violence in women’s own backyard
Sep 9, 2019 | oxfamadmin
We failed yet again
Sep 10, 2019 | oxfamadmin
Providing access to iron-free drinking water
Oct 7, 2019 | oxfamadmin
Her Series - Tale of Buguru Chitamma: How a cooperative transformed fisher women into leaders
Oct 24, 2019 | oxfamadmin
Why the CAF bill conflicts with the Forest Rights Act?
Oct 7, 2019 | oxfamadmin
Renew to Live Anew
Sep 9, 2019 | oxfamadmin
What do we want: Health as a ‘Right’ or just an ‘Assurance’
Nov 18, 2019 | oxfamadmin
Oxfam International signs historic deal to move to Nairobi, Kenya
Oct 24, 2019 | oxfamadmin
Why is passing the Women’s Reservation Bill urgent?
Nov 18, 2019 | oxfamadmin
BREXIT & What It Means for Humanitarian Aid
Oct 7, 2019 | oxfamadmin
Rahul Bose: Films should be gender sensitive
Oct 24, 2019 | oxfamadmin
Portrait of a Teacher: Successful introduction of multi-lingual education for Odisha’s tribal communities
Nov 6, 2019 | oxfamadmin
Tax dodging is a crime against developing countries
Sep 10, 2019 | oxfamadmin
Signs of social risks impacting Indian businesses
Oct 7, 2019 | oxfamadmin
Tikamgarh revisited, what’s happened to the amazing fishing communities I visited in 2006?
Jan 9, 2020 | oxfamadmin
Where school means freedom
Sep 10, 2019 | oxfamadmin
Yes, Prime Minister
Oct 30, 2019 | oxfamadmin
India’s National Budget 2016-17: Missed Opportunity to Address Inequality?
Oct 1, 2019 | oxfamadmin
Free The Night
Sep 9, 2019 | oxfamadmin
Woman, Open Your Eyes…
Oct 24, 2019 | oxfamadmin
From Darbhanga to Davos: Access to Affordable Medicine Still Remains a Key Question
Dec 16, 2019 | oxfamadmin
Hoping for a Second Chance: Punita Devi
Sep 27, 2019 | oxfamadmin
Activating Youth in Lucknow to Promote Girls’ Education
Sep 27, 2019 | oxfamadmin
Change is Coming: Rani Bitti’s Story
Sep 10, 2019 | oxfamadmin
Rachna’s Fight for Justice
Oct 7, 2019 | oxfamadmin
3 Key Observations from #WEF2016 that Indian Businesses Must Take Note Of
Sep 27, 2019 | oxfamadmin
Here’s Why States Need to Provide Free Basic Medicines
Nov 18, 2019 | oxfamadmin
Update: Oxfam to Provide Shelter to 300 Households Hit by The Manipur Earthquake
Apr 5, 2019 | oxfamadmin
In El Salvador, a struggle to survive El Niño
Oct 24, 2019 | oxfamadmin
Bihar designs a 15-year roadmap to reduce risk of disaster
Feb 20, 2020 | ursila
Violence as an Effective Mode of “Indian” Communication
Apr 5, 2019 | oxfamadmin
Because it’s 2015!
Sep 27, 2019 | oxfamadmin
Let’s welcome a new dawn, minus domestic violence
Oct 24, 2019 | oxfamadmin
Data and Discrimination: Women’s Ownership of Assets in India
Oct 24, 2019 | oxfamadmin
“No Woman, No Cry!”
Sep 27, 2019 | oxfamadmin
Pushing, pulling and the power of people: new horizons for corporate responsibility?
Jan 9, 2020 | oxfamadmin
Yes bank - say to inclusive and social banking and inclusive business model
Sep 27, 2019 | oxfamadmin
Creating shared value through inclusive business
Oct 7, 2019 | oxfamadmin
TATA consultancy services – empowering farmers with mobile technology
Sep 27, 2019 | oxfamadmin
What the CSR numbers don’t tell
Oct 1, 2019 | oxfamadmin
6 important things companies need to do to be inclusive
Nov 21, 2019 | oxfamadmin
Why businesses need to invest in creating a productive population for a sustainable future
Sep 10, 2019 | oxfamadmin
Jaipur rugs – weaving the lives of the poor into the global markets. an inclusive business model.
Oct 24, 2019 | oxfamadmin
The next 15 years: highlighting the role of the private sector in development
Oct 7, 2019 | oxfamadmin
Emphasizing a human rights-based approach to inclusiveness in business
Oct 30, 2019 | oxfamadmin
Privatising Forests: A Bad Idea
Oct 30, 2019 | oxfamadmin
Adoption of Agenda 2030: 17 SDGs for 15 years
Nov 15, 2019 | oxfamadmin
Five questions about the #GlobalGoals you were too embarrassed to ask
Oct 7, 2019 | oxfamadmin
Last mile smile
Oct 7, 2019 | oxfamadmin
Social responsibility of companies should not stop at 2%
Sep 27, 2019 | oxfamadmin
In ‘campaign mode’, states flout FRA rules
Sep 27, 2019 | oxfamadmin
“I will not leave my forest. I will keep my jungle”
Oct 1, 2019 | oxfamadmin
Healthcare for all in India: When, How, and Why RSBY?
Oct 24, 2019 | oxfamadmin
Where is the nutrition? Ask pregnant women in a village of Bihar
Jan 9, 2020 | oxfamadmin
Learning to read at schools, but where are the textbooks?
Oct 24, 2019 | oxfamadmin
Progressive tax norms must underlie financing of the Sustainable Development Goals
Sep 27, 2019 | oxfamadmin
Teachers needed! Government schools are falling behind due to lack of funds
Oct 24, 2019 | oxfamadmin
Protect and expand India’s public healthcare system: The inequality imperative
Dec 16, 2019 | oxfamadmin
“On My Second Day At School, A Kid Asked Me What Caste I Was”
Oct 7, 2019 | oxfamadmin
India’s missing girls: A tale of healthcare neglect faced by girls
Sep 9, 2019 | oxfamadmin
Should we only give attention to women’s health on International day of action?
Nov 18, 2019 | oxfamadmin
No respite for 72-year-old Sitaram, a month after #NepalEarthquake
Oct 7, 2019 | oxfamadmin
One month on, education of children still jolted by Nepal earthquake
Oct 24, 2019 | oxfamadmin
New worry for Nepal; landslides, floods may block relief work
Oct 7, 2019 | oxfamadmin
Monsoon preview in Kathmandu blows away shelters in relief camp
Oct 1, 2019 | oxfamadmin
Last mile distribution of relief supplies is biggest challenge in Nepal: Indian ambassador
Oct 7, 2019 | oxfamadmin
When Delhi’s Streets Buzzed with ‘Haq Banta Hai’
Oct 7, 2019 | oxfamadmin
Lack of water, toilets making things worse for women in Nepal
Oct 7, 2019 | oxfamadmin
Oxfam India gets government approval to respond to #NepalEarthquake in 28 hours
Apr 5, 2019 | oxfamadmin
Desperation creeping in, people in Nepal wait for aid
Oct 7, 2019 | oxfamadmin
#OxfaminNepal: “More than 60,000 litres of water has been provided till now”
Oct 7, 2019 | Avantika
Political (and some other) priorities in Nepal as of 28 April 2015
Oct 30, 2019 | oxfamadmin
#Nepal Earthquake: “The death toll has crossed 2000 and this is just the beginning”
Jan 9, 2020 | oxfamadmin
#NepalEarthquake: It is going to be a long road to recovery
Oct 24, 2019 | oxfamadmin
Money Matters!
Oct 24, 2019 | oxfamadmin
All for Education, Education for All
Oct 7, 2019 | oxfamadmin
When schools continue to exclude, can education reduce caste discrimination in India?
Feb 20, 2020 | oxfamadmin
Ensuring the right to education, forming bonds for life
Oct 1, 2019 | oxfamadmin
How can India send a spaceship to Mars but not educate its children?
Sep 30, 2019 | oxfamadmin
India wins in cricket, but losing out on education
Sep 30, 2019 | oxfamadmin
Oxfam's 'Even it up' report a must read lesson on Inequality
Oct 24, 2019 | oxfamadmin
It’s time to understand ‘womanhood is beyond maternity’
Oct 7, 2019 | oxfamadmin
The True Measure of Land's Value
Oct 7, 2019 | oxfamadmin
The “Ten-thousand Committee”: Reviving VHSNCs in Jharkhand
Oct 1, 2019 | oxfamadmin
Singing their way out of child marriage
Sep 10, 2019 | oxfamadmin
Land Acquisition bill tests government’s pro-poor stance
Oct 1, 2019 | oxfamadmin
Breaking the silence, standing tall
Sep 27, 2019 | oxfamadmin
Making a Song and Dance about Child Marriage
Oct 7, 2019 | oxfamadmin
Let’s Talk About Sex
Sep 10, 2019 | oxfamadmin
Mobile technology solutions could be a game changer for maternal health: Scribes
Sep 27, 2019 | oxfamadmin
Missing Girls: The Puzzling Domestic Violence Agenda
Oct 3, 2019 | oxfamadmin
Her Ghar: A right to residence for every woman
Oct 7, 2019 | oxfamadmin
Considering Gender: A Mediaperson’s Guide to Covering Disasters
Dec 16, 2019 | oxfamadmin
True Grit
Apr 5, 2019 | oxfamadmin
Violence against women and star power: Does their magic wand work?
Oct 24, 2019 | oxfamadmin
Having Those Difficult Conversations
Oct 24, 2019 | oxfamadmin
Day of the Man: guarding the china shop
Oct 7, 2019 | oxfamadmin
Gender parity needs to begin at home with mother’s guardianship rights!
Sep 9, 2019 | oxfamadmin
It’s a Girl!
Oct 1, 2019 | oxfamadmin
Let’s Help End Domestic Violence!
Oct 24, 2019 | oxfamadmin
A Few Good Men
Oct 7, 2019 | oxfamadmin
Promises to keep—Implementation of PWDV Act in Odisha
Sep 27, 2019 | oxfamadmin
Make 16 Days of Activism an Everyday Practice
Oct 30, 2019 | oxfamadmin
Witch-Hunting: A less talked about form of Violence Against Women
Oct 24, 2019 | oxfamadmin
Markets Also Discriminate
Oct 7, 2019 | oxfamadmin
Let’s Talk About Domestic Violence!
Oct 7, 2019 | oxfamadmin
Getting Serious about Ending Violence against Women and Girls
Oct 3, 2019 | oxfamadmin
Right to a Violence Free Life
Sep 10, 2019 | oxfamadmin
It’s all about the money
Sep 10, 2019 | oxfamadmin
‘It’s No Longer Funny': The Funding Wars That’ll Dictate Our Future
Oct 7, 2019 | oxfamadmin
Girl, Interrupted
Oct 1, 2019 | oxfamadmin
16 Pictures From Imagining Inequality That WiIl Tell You The Truth #evenitup
Oct 24, 2019 | oxfamadmin
These 8 Goals Were Set To Develop The World, But 14 Years Since, This Is Where We Stand
Dec 5, 2019 |
A Look At The Year 2029: What Kind Of Legacy Will We Leave Behind For Our Future Generations?
Nov 18, 2019 |
These 8 Goals Were Set To Develop The World, But 14 Years Since, This Is Where We Stand
Oct 24, 2019 | oxfamadmin
BRICS bank a necessary step, but needs more transparency
Sep 9, 2019 |
Short term memory and Long term needs!
Oct 7, 2019 |
A people’s budget has to go beyond...
Oct 24, 2019 |
National Shame, National Failure
Sep 27, 2019 | oxfamadmin
Oxfam India pledges its support to #BringBackOurGirls
Oct 1, 2019 | oxfamadmin
Closing the Gap on Gender: Is India up for the challenge?
Nov 15, 2019 | oxfamadmin
She tills, she sows, but she does not own
Oct 7, 2019 | oxfamadmin
Take a pause: what do the Uttrakhand floods tell us about India’s development model?
Sep 10, 2019 | oxfamadmin
Saving lives on sharp turning roads
Oct 1, 2019 | oxfamadmin
They do mind the gap
Oct 7, 2019 | oxfamadmin
Right to Education, still a long way to go.
Oct 1, 2019 | oxfamadmin
Can We Close the Gap on Women's Inequality in India?
Oct 30, 2019 | oxfamadmin
Breaking Old Barriers and Building New Alliances for Food Justice in India and Globally
Oct 24, 2019 | oxfamadmin
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