In its first step towards reviving the labour law reform process, the Union Cabinet on Wednesday approved a draft legislation, which seeks to mandate minimum wages fixed by the central government.
The Union Cabinet approved the Code on Wages Bill, Information and Broadcasting Minister Prakash Javadekar said in a press conference after the meeting on Wednesday.
The Code on Wages Bill was tabled in Lok Sabha during the previous tenure of the government in August 2017, and it was referred to the standing committee that had given its comments to the labour ministry, but the Bill lapsed after the dissolution of the 16th Lok Sabha.
The Bill had proposed empowering the states to fix different minimum wages based on geography, skill and occupation, along with a national-level minimum wage which will act as a floor.
At present, the Centre fixes a National Floor-Level Minimum Wage – a non-statutory measure to ensure that states fix their minimum wages beyond this floor level.