Minimum wages will be revised at least every five years. This is an improvement over the previous laws, where the revision period could be much longer, leading to wages falling far behind inflation. The Code also mandates the inclusion of a Variable Dearness Allowance (VDA) in minimum wages, which is adjusted periodically based on the Consumer Price Index (CPI) to account for inflation. This ensures that wages retain their purchasing power over time.

The Code expands the scope of timely wage payment. Wages must be paid within 7 days of the last day of the wage period (monthly, weekly, etc.). Earlier, the Payment of Wages Act, 1936, had different timelines for different wage periods. This tighter timeline ensures workers receive their hard-earned money promptly, preventing financial distress.

It introduces a new category of 'fixed-term employment' and ensures that fixed-term employees receive wages and benefits on par with regular employees, including pro-rata benefits. This addresses the growing trend of contractual employment and aims to provide better protection to these workers.

The Code consolidates provisions related to bonus payments. It retains the statutory bonus payment for employees earning up to a certain wage ceiling (which is to be determined by the government) and a percentage of profit, similar to the Payment of Bonus Act, 1965. This ensures that workers continue to receive a share of the company's profits.

The Code introduces provisions for 'Inspector-cum-Facilitators' who will be responsible for inspection and enforcement. Unlike traditional inspectors who might focus solely on penalizing violations, these facilitators are expected to guide employers and workers towards compliance, promoting a more cooperative approach to labor law enforcement.

Penalties for non-compliance have been rationalized and increased. For first-time offenses, fines can go up to ₹50,000. For repeat offenses within five years, the fine can be up to ₹1,00,000 and/or imprisonment up to three months. This increased penalty aims to deter employers from violating wage laws.

The Code extends coverage to part-time employees, ensuring they receive wages on a pro-rata basis according to the hours worked. This is a progressive step, recognizing the increasing prevalence of part-time work and ensuring that these workers are not paid less than their full-time counterparts for the work done.

The Code mandates that the basic wage plus dearness allowance must constitute at least 50% of the total remuneration paid to an employee. Any allowances that push the non-basic portion above 50% will be reclassified as wages, increasing liabilities for PF, gratuity, and bonus. This provision aims to prevent employers from artificially inflating allowances to reduce their statutory contributions.

The Code specifies that all wage-related dues must be cleared within 48 hours of an employee's last working day, regardless of the reason for separation (resignation, dismissal, etc.). This is a significant change from previous practices where settlements could take much longer, often leading to worker grievances.

Minimum wages will be revised at least every five years. This is an improvement over the previous laws, where the revision period could be much longer, leading to wages falling far behind inflation. The Code also mandates the inclusion of a Variable Dearness Allowance (VDA) in minimum wages, which is adjusted periodically based on the Consumer Price Index (CPI) to account for inflation. This ensures that wages retain their purchasing power over time.

The Code expands the scope of timely wage payment. Wages must be paid within 7 days of the last day of the wage period (monthly, weekly, etc.). Earlier, the Payment of Wages Act, 1936, had different timelines for different wage periods. This tighter timeline ensures workers receive their hard-earned money promptly, preventing financial distress.

It introduces a new category of 'fixed-term employment' and ensures that fixed-term employees receive wages and benefits on par with regular employees, including pro-rata benefits. This addresses the growing trend of contractual employment and aims to provide better protection to these workers.

The Code consolidates provisions related to bonus payments. It retains the statutory bonus payment for employees earning up to a certain wage ceiling (which is to be determined by the government) and a percentage of profit, similar to the Payment of Bonus Act, 1965. This ensures that workers continue to receive a share of the company's profits.

The Code introduces provisions for 'Inspector-cum-Facilitators' who will be responsible for inspection and enforcement. Unlike traditional inspectors who might focus solely on penalizing violations, these facilitators are expected to guide employers and workers towards compliance, promoting a more cooperative approach to labor law enforcement.

Penalties for non-compliance have been rationalized and increased. For first-time offenses, fines can go up to ₹50,000. For repeat offenses within five years, the fine can be up to ₹1,00,000 and/or imprisonment up to three months. This increased penalty aims to deter employers from violating wage laws.

The Code extends coverage to part-time employees, ensuring they receive wages on a pro-rata basis according to the hours worked. This is a progressive step, recognizing the increasing prevalence of part-time work and ensuring that these workers are not paid less than their full-time counterparts for the work done.

The Code mandates that the basic wage plus dearness allowance must constitute at least 50% of the total remuneration paid to an employee. Any allowances that push the non-basic portion above 50% will be reclassified as wages, increasing liabilities for PF, gratuity, and bonus. This provision aims to prevent employers from artificially inflating allowances to reduce their statutory contributions.

The Code specifies that all wage-related dues must be cleared within 48 hours of an employee's last working day, regardless of the reason for separation (resignation, dismissal, etc.). This is a significant change from previous practices where settlements could take much longer, often leading to worker grievances.