New Labour Codes

Context: Ministry of Labour and Employment introduced Bills on three Labour Codes in the Lok Sabha.


  • These Bills are:
  1. Industrial Relations Code, 2020,
  2. Code on Occupational Safety, Health & Working Conditions Bill, 2020
  3. Social Security Code, 2020. 
  • The Code on Wages has already been approved by Parliament in August 2019 and has already become the law of the land. 
  • It was one of the recommendations of the second National Commission on Labour that the existing Labour Laws to be merged into fewer Labour Codes.
  • As a result, 29 Central Labour Laws are proposed to be reduced to just 4 Labour Codes.
  • A statutory right has been created for minimum wages and timely payment of wages to all workers whether in organized or unorganised sector. 

Some Important Features:

  • Method of fixation of minimum wage rates simplified. 
  • Factors to be taken into account are skills and geographical location as against the present system of wage being fixed employment-wise.
  • The number of minimum wage rate would be around 200 in the entire country as against 10000, at present.
  • Revision of minimum wages every 5 years.
  • statutory concept of ‘Floor Wage’ introduced.

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