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

The Central Government has fixed a floor wage for a particular geographical area. A State Government now proposes to notify minimum rates of wages for workers in that area. Under the Code on Wages, 2019, which statement is correct?

The State's minimum rates of wages cannot be lower than the floor wage fixed by the Central Government. The Code requires minimum rates fixed under section 6 to be at least the floor wage, and employer agreement or committee procedure cannot override this.

  1. AThe State may fix minimum rates below the floor wage if employers in the area agree
  2. BThe State's minimum rates of wages must not be less than the floor wageCorrect
  3. CThe floor wage applies only to establishments owned by the Central Government
  4. DThe State may ignore the floor wage if it has appointed a committee

Explanation

Section 9(2) says the minimum rates fixed by the appropriate Government under section 6 shall not be less than the floor wage. Employer consent or appointing a committee does not allow a lower rate. The floor wage is not limited to Central establishments.

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