The ‘New Code of Wages’ comparison with Past Act’s

Table of Contents

Find below the comparison of the various past Acts with new ones-

Minimum Wages Act, 1948 :-
Past New
The Act was applicable only to Scheduled Employments Applicable to all employees including organized and unorganized sector
“Wages” was including house rent allowance and all other allowances Excludes house rent allowance in the definition of wages. However, all allowances put together cannot be more than 50% of the total remuneration
Minimum Basic wages must be revised by the central or state governments at least once in 5 year Minimum Basic wages must be revised every 5 years to compensate for inflation costs
There was no provision to fix floor wages The Central Government will set minimum floor wages with the probability of different minimum wages for different states and UT
Allowed the Central or State Governments to set overtime wages Working more than 15 minutes beyond the scheduled hours will be considered overtime. Sets overtime wages at two times the normal wage
Unscheduled Inspections Web based inspection schedule
Penalties faced was a fine upto Rs. 500 and upto 6 months imprisonment Fine upto Rs. 50,000. Repeat offences within 5 years get upto 3 months imprisonment or Rs. 1 Lacs fine, or both
Payment of Wages Act, 1936 :-
Past New
Applicable to those drawing Rs.24,000 for filing claims All employees are protected
Cessation of employment was done only within 2 working days of their termination of employment or closure of establishment While retaining earlier provisions of 2 working days in cessation of employment, there have been added provisions for retrenchment and resignation

Equal Remuneration Act, 1976 :-
Past New
Prohibited gender discrimination in wage payment Prohibits matters related to wages and Recruitment of employees for the same work or a similar nature
Fine of upto Rs.20,000 or 1 year imprisonment was the sentence. Fine upto Rs.20,000 and continuous offenders within 5 years will face imprisonment of 1 month or upto Rs.40,000 fine, or both
Payment of Bonus Act, 1965 :-
Past New
Applicable only to Scheduled Employments and wages till Rs.21,000 Applicable to all employees including organized and unorganized sector
Disqualification of an employee for dismissal misconducts i.e. fraud, riotous behavior, theft and misappropriation While retaining earlier provisions for Disqualification, additional point has been added which is on conviction for sexual harassment
No provision for higher bonus disputes Employers are liable to pay bonus @8.33% when a dispute is referred to the industrial tribunal for payment of higher bonus
Fine upto Rs.1000 or upto 6 months Imprisonment Fine upto Rs.20,000 and imprisonment of 1 month or fine upto Rs.40,000 or both for repeat offences in a 5 year period

Recent Updates