Ministry of Labour & Employment vide press release dated 20 March, 2023 has clarified that Code on Wages, 2019 makes minimum wages universally applicable across employments. As per Section 4 of the Minimum Wages Act, 1948, the minimum rate of wages may consist of:
(i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the “cost of living allowance”) ; or
(ii) a basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concessional rates, where so authorised; or
(iii) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.
