Good Morning,
Query 1: I would like to confirm if the Code of Wages has been passed as law and if the date of applicability has been given in the Gazette.
Query 2: Does it say anything about the split percentage between Basic+DA, HRA, and other allowances?
Looking forward to the reply.
From India, Mumbai
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51Query 1: I would like to confirm if the Code of Wages has been passed as law and if the date of applicability has been given in the Gazette.
Query 2: Does it say anything about the split percentage between Basic+DA, HRA, and other allowances?
Looking forward to the reply.
From India, Mumbai
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Dear Deena,
The Code on Wages, 2019 has already been passed as law, and the Central Rules have been published. However, the date of notification for application is yet to be issued.
I suggest that you go through section 2(y) of the Code on Wages, 2019, which defines the term "wages." Under this definition, the components that are typically included in wages are: (1) Basic Pay, (2) Dearness Allowance, and (3) Retaining Allowance. All other items categorized as allowances, such as HRA and Conveyance Allowance, and other payments listed under clauses (a) to (k), are usually excluded.
Nevertheless, the first proviso to the section limits the share of such allowances to 50% of the total remuneration; any excess should be added to the wages. Similarly, the second proviso allows for the inclusion of certain excluded allowances for the purpose of calculating equal remuneration regardless of sex.
Thank you.
From India, Salem
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The Code on Wages, 2019 has already been passed as law, and the Central Rules have been published. However, the date of notification for application is yet to be issued.
I suggest that you go through section 2(y) of the Code on Wages, 2019, which defines the term "wages." Under this definition, the components that are typically included in wages are: (1) Basic Pay, (2) Dearness Allowance, and (3) Retaining Allowance. All other items categorized as allowances, such as HRA and Conveyance Allowance, and other payments listed under clauses (a) to (k), are usually excluded.
Nevertheless, the first proviso to the section limits the share of such allowances to 50% of the total remuneration; any excess should be added to the wages. Similarly, the second proviso allows for the inclusion of certain excluded allowances for the purpose of calculating equal remuneration regardless of sex.
Thank you.
From India, Salem
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Dear Umakanthan Sir,
I think, to date, the Central Government has not finalized the rules.
Vide notification dated 07.07.2020, the draft rules were published for the second time for objections and suggestions, and the said draft rules were to be taken into consideration after the expiry of a period of forty-five days from 07.07.2020. Forty-five days are over, but to my knowledge, to date, there is no final notification on it.
Though the CoW is a law of our country, it has no enforceability until such time as the rules are not notified.
The unfortunate part is, most of the State Governments have not even done any homework on rules to be framed under their jurisdiction, including the State of Maharashtra, as told to me by someone. Under these circumstances, the question will arise whether central rules will be applied to every State or we will have to wait for an indefinite amount of time, similar to the experience we had in implementing the BOCW Act.
I would like to have your valuable comments on this.
From India, Mumbai
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I think, to date, the Central Government has not finalized the rules.
Vide notification dated 07.07.2020, the draft rules were published for the second time for objections and suggestions, and the said draft rules were to be taken into consideration after the expiry of a period of forty-five days from 07.07.2020. Forty-five days are over, but to my knowledge, to date, there is no final notification on it.
Though the CoW is a law of our country, it has no enforceability until such time as the rules are not notified.
The unfortunate part is, most of the State Governments have not even done any homework on rules to be framed under their jurisdiction, including the State of Maharashtra, as told to me by someone. Under these circumstances, the question will arise whether central rules will be applied to every State or we will have to wait for an indefinite amount of time, similar to the experience we had in implementing the BOCW Act.
I would like to have your valuable comments on this.
From India, Mumbai
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Dear Akhil,
I also share your concern. I am told that in Tamil Nadu, recently the State Labor Department Officers have been asked to offer their suggestions/remarks on the proposed Central Rules in order to draft the State Rules. Of course, it is a laborious task if one sincerely makes a comparative assessment of the Code and its proposed Rules with the existing laws on the subjects included in the Code. However, I hope that the majority of the States will soon simply adopt the central Rules by shuffling rule numbers, format of notices, and the like.
From India, Salem
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I also share your concern. I am told that in Tamil Nadu, recently the State Labor Department Officers have been asked to offer their suggestions/remarks on the proposed Central Rules in order to draft the State Rules. Of course, it is a laborious task if one sincerely makes a comparative assessment of the Code and its proposed Rules with the existing laws on the subjects included in the Code. However, I hope that the majority of the States will soon simply adopt the central Rules by shuffling rule numbers, format of notices, and the like.
From India, Salem
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Code on wages (TN) rules 2022.pdf