Implementation of “Minimum Wages” under the Code on Wages, 2019

The Labour department is in-process to implement the revised minimum wages as published by the respective state governments.

It is advised to ensure the following compliances as per the requisite of the Code on Wages, 2019 & Code on Social Security, 2020:

1. payment of minimum wages as per Employee Category in your establishment and also for contractual employees (if any) working with you.
2. no bifurcation of Minimum Wages of the respective state are allowed under the New wage code.
3. distribution of wages slip between 1^st to 5^th of every month.
4. ensure distribution of payment of salary on or before 7^th of every month.
5. ensure to issue Letter of Appointment to each employee
6. ensure to process Full & Final within 2 Working days from the Last Working day of the employee at the time of employee exit.
7. Gratuity may be paid within 30 days from day of exit.
8. Statutory Bonus may be paid within 8 months of closing of Financial Year.
9. deduction of EPF contribution on Minimum wages (without bifurcation) of the state or UPTO threshold limit of Wage ceiling i.e. Rs.15,000/- .
10. deduction of ESI contribution on “wages” definition as per the CoSS,2020.
11. basic + DA + Retaining Allowance(if any) i.e. applicable Minimum Wages of the respective states, OR
12. on “wages” definition as per the CoSS,2020 i.e. 50% of the total remuneration  subject to threshold limit of “wages” i.e. Rs.21,000/- as per the ESIC.