Under Section 42 of the Code on Wages, 2019, the Central

Solution

Section 42 of the Code on Wages, 2019 provides for the constitution of the Central Advisory Board by the Central Government for the purpose of advising on matters relating to fixation and revision of minimum wages and other matters under the Code. The Board consists of persons nominated by the Central Government representing employers and employees in equal numbers, along with independent persons whose number shall not exceed one-third of the total number of members. The independent members represent the public interest and act as neutral arbiters between employer and employee representatives. The Central Advisory Board has two key functions: (i) advising the Central Government on fixation and revision of minimum wages, including the floor wage; and (ii) coordinating the work of the State Advisory Boards constituted under Section 42(2) by respective State Governments. A significant reform is that the Central Government must consult the Central Advisory Board before fixing the floor wage under Section 9(3), though such consultation is advisory and not binding. At the State level, each State Government constitutes a State Advisory Board with a similar composition to advise on minimum wages within its jurisdiction.