Question
Under Section 6 of the Code on Wages, 2019, which of the
following factors must the appropriate Government primarily take into account while fixing minimum wages?Solution
Section 6(6) of the Code on Wages, 2019 provides that while fixing minimum wages, the appropriate Government shall primarily take into account: (i) the skill of workers required categorised as unskilled, semi-skilled, skilled, and highly skilled; (ii) the arduousness of the work assigned whether the nature of work involves difficulty, hazard, or physical strain; and (iii) the geographical area in which the employment is carried out, acknowledging regional differences in cost of living. Unlike the old Minimum Wages Act, 1948 which applied only to scheduled employments covering roughly 30% of the workforce, the Code on Wages now mandates minimum wages for all employees across all sectors, both organised and unorganised. The Code also mandates that minimum wages may include a basic rate of wages and a special allowance linked to the cost of living index. Further, the Code on Wages (Central) Rules, 2025 prescribe that minimum wages must be calculated considering a standard working-class family comprising an employee, spouse, and two children equivalent to three adult consumption units. Minimum wages must be revised at intervals not exceeding five years.
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