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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Wages, 2019

A State had earlier fixed a minimum daily wage of Rs 700 for a category of workers. The Central Government later fixes a floor wage of Rs 600 for the same area. What must the State do under the Code on Wages, 2019?

The State must keep the Rs 700 rate. Where an earlier minimum rate is higher than the floor wage, the Code bars the appropriate Government from reducing it, so the floor wage acts only as a lower limit and not as a target.

  1. AReduce its rate to Rs 600 to align with the floor wage
  2. BKeep Rs 700 and not reduce it, since it exceeds the floor wageCorrect
  3. CRaise its rate to Rs 1,200 as double the floor wage
  4. DWithdraw its notification until the Centre approves it

Explanation

Section 9(2) provides that if the minimum rates fixed earlier are more than the floor wage, the appropriate Government shall not reduce them. So Rs 700 stays. Reducing to Rs 600 is the mistake the proviso forbids.

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