How To Stay Compatible With Your New Minimum Wages Act?

The new wage act has come with a lot of changes, which are difficult to be compatible with, especially for new businesses and people working in the private sector. But at the same time, the state governments will bring their own rules and regulations to implement the laws. According to which it will be necessary to take decisions, for all the businesses and the working class.

How To Stay Compatible With Your New Minimum Wages Act?

Introduction 

According to tradingeconomics.com, the minimum wages in India will remain constant at 178 INR/Day in 2022 from 178 INR/Day in 2021.
 

The NFLMW(National Floor Level Minimum Wage) is the minimum wage lower than no state government can finalise minimum salary This is a non-statutory estimation to corroborate upward revision of minimum wages in different states. The central government introduced the National Floor Level Minimum Wage in 1996.

The Minimum Wages Act applies all over India to safeguard the rights of labourers who seek to earn a decent standard of living. The inviolability of this act was proved by the landmark case of Sanjit Roy vs the State of Rajasthan.
 

According to the supreme court’s decision that non-payment of the minimum wage, the result will be  “forced labour”, which is interdicted under Article 23 of The Indian Constitution.
 

According to the records, India consists of around 487 million workers which are the second largest after China and so it is necessary to handle the people accordingly by maintaining their wellbeings of these people.

According to the Indian Constitution, the ‘minimum wage’ is defined as the income level for both non-skilled skilled employees, which makes sure some level of concession in addition to supporting living standards for all classes of workers. This article deals with the information that one needs to know about the new minimum wages act and after knowing all about it, will it be easy for anyone to stay compatible with it? 

 

Result of Infringement of laws 

In case of infringement of laws, such as refraining to pay the minimum wage or nonpayment of monthly dues will result in committing a punishable offence according to the orders proclaimed by the Indian Central Act.

Consistent action like this will lead to both monetary compensation and imprisonment. As a penalty, the party, who has committed the non-compliance can be fined an amount of ₹10000/- along with up to 5 years of imprisonment. But the fine cannot be imposed on any employed person until he has been with the reason against the fine or following such procedure as may be prescribed for the imposition of fines. 

Appealing against the authority’s order, that should be made within 30 days of the date of the concern direction, which can be before the Court of Small Causes and otherwise before the District Court.

 

The reasons for implementing the minimum wages act and authorization 

● To provide the working class, working in the organized sectors the minimum wages. 

● To encourage equal representation of employers and workers in the advisory committees and advisory board

● To ensure that the employers are not exploiting the employees by providing them with insufficient wages. 

● As this act applies to all types of industries, places of business and factories, all these sectors enjoy the privileges but except the unauthorised industries 

● It can help the industries in determining the maximum hours to a lot for working. 

● This helps in the interference of the central government in the decision-making process of the individual state government. 

● It allows for setting up a department where the victims can seek redressal. 

It is the responsibility of the individual state government to fix the minimum wages, which are to be paid to employees in a stipulated time. According to section 27 of the Act, an official notice will be published to notify the same as a declaration to the public. 

 

Details you will want to know about the new minimum wages act

The Central Government proclaimed that the new rates will be effective from the beginning of the financial year 2022, i.e., April 1, 2022. The Indian states have decided to follow in their footsteps and execute the Act as an integral part of their legislature.

For instance, Andhra Pradesh  from April 1, 2022; Andaman & Nicobar Islands from January 1, 2022; Chandigarh from April 1, 2022; Bihar from April 1, 2022; Chhattisgarh from April 1, 2022; Haryana from January 1, 2022; Goa from April 1, 2022; Delhi from April 1, 2022; Gujarat from April 1, 2022; Himachal Pradesh from April 1, 2022; Karnataka from April 1, 2022; Maharashtra from January 1, 2022; Jharkhand from April 1, 2022; Kerala from May 1, 2022; Madhya Pradesh from April 1, 2022; West Bengal​July 1, 2022; Meghalaya from April 1, 2022; Odisha from April 1, 2022; Rajasthan from July 1, 2021; Uttarakhand from April 1, 2022; Tripura from April 1, 2022; Tamil Nadu from  April 1, 2022; Uttar Pradesh from April 1, 2022;  Telangana from April 1, 2022. Some of the states and Union Territories have not declared their dates for the incorporation of the minimum wages act for the fiscal year of 2022. Some of the states as, Assam, Rajasthan, Sikkim, Punjab, Mizoram, Nagaland, Manipur, Jammu & Kashmir, Daman & Diu, Dadra & Nagar haveli, and Arunachal Pradesh. 

 

Some changes will take place in the payroll process due to the new wage code

● 12 per cent of the basic salary will contribute to the provided fund 

● Gratuity rules have been changed through changes. According to the Act, employees are entitled to receive gratuity after 5 years of continuous work. But, as per the New wage code 2021, employees will be entitled to receive gratuity even if they have worked for just 1 year. 

● The salary structure has changed and in this case, the CTC or cost to the company will be affected by the increase in the basic salary. If the basic salary of an employee has been less than 50%, it has to be increased. 

 

Conclusion 

In conclusion, the new wage act has come with a lot of changes, which are difficult to be compatible with, especially for new businesses and people working in the private sector.

But at the same time, the state governments will bring their own rules and regulations to implement the laws. According to which it will be necessary to take decisions, for all the businesses and the working class. 

 

References:-

1) https://tradingeconomics.com/india/minimum-wages

2) https://www.simpliance.in/minimum-wages

3) https://www.indiafilings.com/learn/minimum-wages-act/

Written by:

 Sohankita Mukherjee.

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