Constitutionality Of Minimum Wage

Vaishali Jaiswal & Madhav Bansal, UPES School of Law

Introduction:

The Minimum Wage Act of 1948 doesn't define minimum wage this act has been repealed by the Code on wages act of 2019 and this act has specified or defined Minimum wage in section 2(s) as wages fixed under section 6 of the act. This code was passed by the Indian Parliament’s assent on August 8, 2019.

The Code on wages act 2019 has repealed or subsumed the following acts:

• Minimum Wage Act 1948

• Payment of Wages Act 1936

• Act on Bonus Payment 1965

• Equal Remuneration Act 1976

The goal of this code was to make changes to the aforementioned laws and eliminate any existing complications and ambiguities.

A minimum wage depends on basic sustenance it is the lowest wage rate that an employer is obligated by law to pay to their employees for the work they perform or the services they provide is referred to as the minimum wage. Government legislation often sets the minimum wage, which protects workers from receiving insufficient compensation for their labour.

Depending on the jurisdiction, the precise meaning of minimum wage may change, but generally speaking, it refers to the lowest hourly or daily rate that employers are obligated to pay their employees. The purpose of the minimum wage is to guarantee that workers receive a fair income that is enough to fulfil their basic requirements, such as clothing, housing, and food. Minimum wage rules may take into account things like the cost of living in a specific area, the going rate for jobs that are similar to the one being done, and the amount of expertise needed for the job, Different minimum pay rates for various industries or job kinds may apply in some countries.