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      Question

      Under Section 9 of the Code on Wages, 2019, which of the

      following statements about the National Floor Wage is correct?
      A Both the Central and State Governments have the power to fix the floor wage Correct Answer Incorrect Answer
      B The Central Government fixes the floor wage, and State Governments may fix minimum wages below the floor wage if economic conditions warrant Correct Answer Incorrect Answer
      C The Central Government fixes the floor wage taking into account minimum living standards, and different floor wages may be fixed for different geographical areas Correct Answer Incorrect Answer
      D The floor wage is automatically revised every year based on the Consumer Price Index Correct Answer Incorrect Answer

      Solution

      Section 9 of the Code on Wages, 2019 empowers only the Central Government not State Governments to fix the National Floor Wage, taking into account the minimum living standards of workers. A key feature is that different floor wages may be fixed for different geographical areas, acknowledging regional cost-of-living variations across India. Once the floor wage is fixed, no State Government can fix its minimum wages below the floor wage and critically, if the existing State minimum wage is already higher than the floor wage, the State cannot reduce it to the floor wage level. Before fixing the floor wage, the Central Government may consult the Central Advisory Board and State Governments this consultation is advisory, not mandatory. Minimum wages under the Code are to be revised at intervals not exceeding five years, ensuring periodic updates aligned to economic conditions.

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