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Relationship Between New And Old Wages Code And Its Impact In Society




Prem Kumar S, Dhanalakshmi Srinivasan University

Nanthaa N, Dhanalakshmi Srinivasan University


ABSTRACT


India's wage regulation system has transitioned from a fragmented framework to a more unified structure with the introduction of the Code on Wages, 2019. This new code consolidates four earlier legislations—Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965, and Equal Remuneration Act, 1976—into a single, comprehensive law. The reform aims to simplify compliance, ensure uniformity in wage policies, and extend coverage to all employees across sectors. Under the old laws, different definitions of wages and sector-specific applicability led to confusion and inconsistent implementation. The new code introduces a standard definition of wages, ensures minimum wages for all types of employment, mandates equal pay for equal work, and requires timely payment. It also emphasizes digital compliance and introduces the role of Inspector-cum-Facilitator for advisory-led inspections. This reform is expected to strengthen workers’ rights, enhance ease of doing business, and align India’s labor laws with international standards. Although passed in 2019, full implementation is pending as many states have yet to finalize their respective rules. The Code on Wages reflects a progressive move toward a more equitable and transparent labor law regime in India.


Keywords: Code on Wages, 2019, Labour law reform, Minimum wages, Equal remuneration, Timely wage payment, Unified wage framework, Standard wage definition, Digital payment system, Inspector-cum- Facilitator, Wage transparency, Worker rights, Legal simplification, Unorganized sector protection, Employee benefits, Compliance mechanism.



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Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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