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

Ravi works on piece work in a factory in Pune. The State has fixed only a minimum time rate of Rs 800 per day, and no minimum piece rate, for his category. Under the Code on Wages, 2019, the employer must pay Ravi:

The employer must pay Ravi at not less than the minimum time rate. When only a time rate and no piece rate has been fixed for piece work, the Code requires wages to be no lower than that minimum time rate.

  1. AWhatever the piece rate agreed with him, even if it is lower
  2. BWages at not less than the minimum time rateCorrect
  3. CTwice the minimum time rate for each day
  4. DThe floor wage only, regardless of the time rate

Explanation

Section 12 states that where a person is on piece work and only a minimum time rate has been fixed, the employer shall pay not less than the minimum time rate. An agreed lower piece rate cannot defeat this. Doubling applies to overtime, not here.

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