The Transition from the Minimum Wages Act, 1948 to the Code on Wages, 2019
The Minimum Wages Act of 1948 has historically served as a crucial framework for ensuring that workers receive fair compensation, incorporating a cost of living allowance known as the Variable Dearness Allowance (V.D.A).
This allowance is adjusted biannually, on April 1 and October 1, based on the Consumer Price Index for Industrial Workers, effectively shielding minimum wages from the erosive effects of inflation.
In a significant legislative shift, the provisions of the Minimum Wages Act have been rationalized and integrated into the Code on Wages, 2019. This new Code not only continues to ensure the inclusion of a cost of living allowance but also expands the applicability of minimum wages across all employment sectors, moving beyond the previous limitations to scheduled employments set forth by the 1948 Act. This universal approach reflects an evolving understanding of labor rights and economic conditions, aiming to provide equitable protections for all workers in India.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 4060
TO BE ANSWERED ON 18.08.2025
MINIMUM WAGE
SHRI RAO RAJENDRA SINGH:
state: Will the Minister of LABOUR AND EMPLOYMENT be pleased to
(a)whether the Government proposes to replace minimum wages enforced by law with living wages; and
(b)if so, the number of workers expected to impact with such a move and the nature of impact shall have on working/living conditions of workers in the country?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
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