Four Labour Codes 2020 — Set 2
Labour Laws · चार श्रम संहिताएं 2020 · Questions 11–20 of 200
What is the key concept introduced by the Code on Wages regarding minimum wages?
Correct Answer: B. Universal minimum wage applicable to all employees
The Code on Wages introduces the concept of a universal minimum wage that applies to all employees regardless of sector, industry, or wage threshold. Under the earlier Minimum Wages Act 1948, only workers in scheduled employments were entitled to minimum wages. The new code ensures that every worker in India has a guaranteed minimum wage floor.
Who has the authority to fix the 'Floor Wage' under the Code on Wages?
Correct Answer: B. Central government
The Central Government has the authority to fix the floor wage under the Code on Wages. The floor wage acts as a national minimum below which no state can set its minimum wages. This provision ensures that workers across all states have a baseline level of minimum wage protection, though states can fix minimum wages above the floor.
Under the Code on Wages, what is the payment deadline for daily wage workers?
Correct Answer: B. Within 1 day
The Code on Wages stipulates that wages for daily-rated workers must be paid within 1 day of the wage period ending. This is a standardisation of payment timelines that previously varied across different laws. Timely payment prevents exploitation of daily wage workers who depend on immediate income for subsistence.
Under the Code on Wages, what is the payment deadline for weekly wage workers?
Correct Answer: C. 7 days
The Code on Wages requires that wages for weekly-rated workers must be paid within 7 days of the wage period ending. This ensures regular and timely payment to workers paid on a weekly basis. The standardised payment timelines under the code replace the varied timelines that existed across the four earlier laws.
Under the Code on Wages, wages for monthly workers must be paid within how many days?
Correct Answer: D. 30 days
The Code on Wages stipulates that wages for monthly-rated workers must be paid within 30 days of the wage period. This standardises the payment cycle for salaried employees. For fortnightly workers, the deadline is 14 days, creating a clear tiered payment schedule based on the wage period.
The Code on Wages mandates equal wages for men and women for the same work. This replaced which earlier law?
Correct Answer: B. Equal Remuneration Act 1976
The Equal Remuneration Act 1976 previously mandated equal pay for equal work between men and women. This provision has been incorporated into the Code on Wages 2019. The code prohibits gender-based discrimination in wage fixation and recruitment for the same or similar nature of work.
What is the role of 'Inspector-cum-Facilitator' introduced under the Code on Wages?
Correct Answer: B. To both inspect compliance and help employers understand the law
The Inspector-cum-Facilitator is a new role introduced across the Labour Codes, including the Code on Wages. Unlike the traditional inspector who was purely an enforcement officer, the Inspector-cum-Facilitator also has a facilitative role — helping employers understand and comply with the law. This dual role was aimed at improving the ease of doing business while maintaining worker protections.
Under the Code on Wages, which employees are entitled to receive bonus?
Correct Answer: B. All employees earning up to Rs 21,000/month
Under the Code on Wages (which incorporated the Payment of Bonus Act 1965), employees drawing wages up to Rs 21,000 per month are eligible for bonus. The minimum bonus is 8.33% and the maximum is 20% of wages. Employees must have worked for at least 30 working days in a year to be eligible.
What is the minimum bonus percentage payable under the Code on Wages?
Correct Answer: B. 8.33%
The minimum bonus payable under the Code on Wages (derived from the Payment of Bonus Act) is 8.33% of wages or Rs 100, whichever is higher. This minimum is payable even if the employer has no allocable surplus. The maximum bonus is 20% of annual wages when the employer has sufficient surplus.
The Code on Wages covers which category of employees?
Correct Answer: C. All employees regardless of wage threshold or industry
A key feature of the Code on Wages is that it covers all employees regardless of wage threshold, industry type, or nature of employment. Earlier, the Minimum Wages Act applied only to scheduled employments and the Payment of Wages Act applied only to workers earning below a certain threshold. The universal coverage under the new code is a significant expansion of protection.