Section 6 of COW : Section 6: Fixation Of Minimum Wages

Explanation using Example

Example Application of Section 6 of The Code on Wages, 2019

Imagine that a state government in India is reviewing the minimum wage for workers in the textile industry. The government, as the appropriate authority, decides to update the minimum wage rates to ensure fair compensation for the employees.

Following the provisions of Section 6:

• The government conducts a study to determine the skill levels of workers in the textile industry, categorizing them as unskilled, semi-skilled, skilled, and highly-skilled.
• Considering the findings, the government sets a minimum hourly wage rate for unskilled workers and a higher rate for skilled workers to reflect the difference in skill requirements.
• Additionally, since some workers are exposed to high temperatures in the mills, an extra wage component is added for those working under such arduous conditions.
• The government also decides that the minimum wage will be specified on a daily basis for full-time workers and on an hourly basis for part-time workers or those who work overtime.
• Finally, the government publishes the new minimum wage rates, ensuring that they are in line with the norms prescribed and that the number of different wage rates is kept to a minimum to avoid confusion.

This change in minimum wage rates helps ensure that employees in the textile industry receive fair compensation for their labor, skill level, and working conditions, as mandated by the Code on Wages, 2019.