Source | The Economic Times
NEW DELHI: Union cabinet cleared the first of the four labour codes on wages, paving way for consolidation of more than a dozen different central labour laws dealing with wages of labourers.
The cabinet also raised the ceiling for gold deposits under the sovereign gold bonds (SGB) scheme to make it more attractive. It also gave ex-post facto approval to an order to roll out goods and services tax in Jammu and Kashmir.
The labour bill, marking the first major initiative of this government in amalgamating labour laws thereby significantly improving the ease of doing business as well as ensuring universal minimum wage to all, will now be laid in Parliament in the ongoing monsoon session. The proposed legislation is expected to benefit over 4 crore employees.
“It has been approved,” a source told ET.
The Code on Wages Bill also seeks to empower the Centre to set a minimum wage across sectors, and states will have to maintain that. However, states will be able to provide higher minimum wage in their jurisdiction than fixed by the central government since labour is in the concurrent list.
Once approved by Parliament, even workers getting monthly pay of higher than Rs 18,000 would be legally entitled to a minimum wage.