Section 9 of COW : Section 9: Power Of Central Government To Fix Floor Wage

Explanation using Example

Imagine a scenario where the Central Government has decided to set a floor wage to ensure that workers across the country have a minimum income that supports a basic standard of living. After considering the cost of living, including food, shelter, and other essentials, the Central Government sets this floor wage at ₹500 per day.

In this context, a State Government in a region with a higher cost of living had previously established a minimum wage of ₹600 per day for construction workers. According to the Code on Wages, 2019, Section 9(2), the State Government cannot reduce this minimum wage below ₹600 to match the newly introduced floor wage of ₹500, as it is already above the floor wage threshold.

Furthermore, before the Central Government established the ₹500 floor wage, it sought the advice of the Central Advisory Board and consulted with State Governments to ensure that the floor wage was appropriate and considerate of various geographical conditions, as mentioned in Section 9(3).