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

Arjun's minimum wage is fixed by the hour at a normal rate of Rs 100 per hour. His normal working day is 8 hours. On one day he works 10 hours. Applying the Code on Wages, 2019, what is the minimum total pay for that day?

The minimum pay is Rs 1,200. Eight normal hours at Rs 100 give Rs 800, and the two excess hours must be paid at not less than twice the normal rate, Rs 200 each, giving Rs 400. Section 14 sets this overtime floor.

  1. ARs 1,000
  2. BRs 1,200
  3. CRs 1,400Correct
  4. DRs 1,600

Explanation

Normal 8 hours at Rs 100 = Rs 800. The 2 excess hours must be paid at not less than twice the normal rate, i.e. Rs 200 per hour = Rs 400. Total = Rs 800 + Rs 400 = Rs 1,200? Check: 800 + 400 = 1,200. Working back: 1,200 = 8x100 + 2x200. So the minimum is Rs 1,200.

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