Major Changes in the Provisions:

(a) Minimum Wages – [Chapter II, Sections 5–9]

• • The Central and State Governments shall fix floor wages and minimum wages based on different geographical areas.
  • Employers are prohibited from paying wages less than the notified minimum wages under Section 6.

(b) Payment of Wages – [Chapter III, Sections 15–25]

• • Wages shall be paid in current coin, currency notes, by cheque, or by credit to the employee’s bank account.
  • The time limit for wage payment:
    • Daily wage workers – at the end of the shift/day;
    • Weekly – last working day of the week;
    • Monthly – before the expiry of the seventh day of the succeeding month.
    • Fortnightly– within 2 days after the end of the period
  • Unauthorized deductions are prohibited except as permitted which shall not exceed 50% (currently in case of co-operative society-75%).

(c) Equal Remuneration – [Section 3]

• • The word “gender” has been introduced under Section 3 to promote gender equality.
  • Employers must ensure no gender-based discrimination in wages and recruitment for work of similar nature.

(d) Payment of Bonus – [Sections 26–41]

• • Every establishment covered under this code shall pay an annual bonus subject to prescribed eligibility criteria.
  • Bonus shall be at least 8.33% of the wages earned or ₹100, whichever is higher, and may extend up to 20% if the allocable surplus exceeds the minimum bonus payable.
  • The allocable surplus shall be calculated as per the code which shall be equal to 60% for banking company and 67% for other establishments of the available surplus. the available surplus shall be the amount
  •  calculated in accordance with section 33
  • Certain criteria have been listed under Section 28 which disqualifies an employee from receiving bonus under the code.

(e) Advisory Boards- [Section 42]

• • Central Government shall constitute the Central Advisory Board which shall consist of persons to be nominated by the Central Government—

(a) representing employers;

(b) representing employees which shall be equal in number of the members specified in clause (a);

(c) independent persons, not exceeding one-third of the total members of the Board; and

(d) five representatives of such State Governments as may be nominated by the Central Government.

• • Every State Government shall constitute a State Advisory Board for advising the State Government—

(a) in fixation or revision of minimum wages and other connected matters;

(b) for the purpose of providing increasing employment opportunities for women;

(c) with regard to the extent to which women may be employed in such establishments or employments as the aState Government may, by notification, specify in this behalf; and

(d) in any other matter relating to this Code, which the State Government may refer from time to time to the Board

• • The State Advisory Board and each of the committees and sub- committees thereof shall consist of persons representing employers, employees, independent persons as per sub section (6). One-third of the members referred to in sub-section (6) shall be women

(f) Inspector-cum-Facilitators – [Chapter IV, Section 51]

• • The Code introduces a system of Inspector-cum-Facilitators, tasked with advising employers on compliance and conducting inspections.

(g) Claims – [Sections 45–54]

• • Claims arising under the Code shall be addressed by an Authority notified by the Government.
  • The period of limitation for filing of claims for minimum wages, bonus, equal remuneration, etc by workers shall be 3 years.

The maximum penalty shall be limited to imprisonment up to 3 months and fine up to 1.00.000