Section 8: Procedure for fixing and revising minimum wages

Overview

This section of the Code on Wages, 2019, focuses on how the government decides and changes the minimum wages that employers must pay their workers. It outlines the steps the government must take, including forming committees to help make these decisions.

Scope and Coverage

• This section applies to all employees covered under the Code on Wages, meaning most workers in organized and unorganized sectors.
• It covers all establishments where the Code applies, regardless of size or industry. There are no specific thresholds or exclusions mentioned within Section 8 itself regarding coverage; coverage is determined by the overall applicability of the Code.

Key Obligations and Rights

• Employer Duty: Employers are obligated to pay at least the minimum wage fixed by the appropriate Government as per the procedure outlined in this section.
• Employee Right: Workers have the right to be paid a minimum wage that ensures a basic standard of living, as determined by the government following the process described in Section 8.
• Government Duty: The appropriate Government must follow a structured process, including forming committees, to determine and revise minimum wages. This ensures fairness and considers various factors.

Compliance and Penalties

If an employer fails to pay the minimum wage fixed under this section, they can face penalties. These penalties can include fines, imprisonment, or both, as specified elsewhere in the Code on Wages, 2019. Government inspectors can conduct inspections to ensure compliance, and workers can also report violations.

Practical Examples

• Example 1: Garment Factory A garment factory worker is entitled to the minimum wage fixed for the textile industry in their state. The government, following the procedure in Section 8, has set the minimum wage at ₹175 per day. The employer must pay at least this amount, regardless of the worker’s skill level or experience.
• Example 2: Small Retail Shop A small retail shop owner employs a sales assistant. The government has fixed different minimum wages for different categories of work. If the sales assistant’s job falls under a specific category (e.g., ‘Shop Assistant’), the employer must pay the minimum wage fixed for that category, determined through the process outlined in Section 8.