Code on Wages, 2019

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  • Code on Wages, 2019

Expert Compliance Support for the Code on Wages, 2019

The Code on Wages, 2019 brings significant reforms to India’s wage and compensation framework by replacing four key labour laws—Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act. The new code introduces uniform definitions of wages, new rules for minimum wages, bonus, overtime, working hours, and ensures fair & transparent wage practices across all sectors.

At Msure, we offer comprehensive Wages Code Compliance Services to help organisations realign payroll structures, HR policies, CTC breakups, and statutory practices to fully comply with the new provisions of the Code on Wages.

Why Wages Code Compliance is Critical

The Wage Code mandates:

  • Uniform wage structure (50% “Wages Rule”)
  • Clear guidelines for allowances and CTC components
  • New minimum wage framework
  • Strict timelines for salary payments
  • Mandatory bonus compliance
  • Penalties for non-payment or delayed payment of wages

Non-compliance can lead to penalties, disputes, employee claims, audits, and financial liabilities. Our team ensures seamless transition and zero-risk compliance for corporates, factories, and establishments across India.

Our Wages Code Compliance Services

We help organisations revise and redesign employee salary structures as per the new definition of “wages” under the Wage Code.
Services include:

  • Analysis of existing CTC components
  • Splitting of wages and allowances under the 50% rule
  • Designing compliant salary breakups
  • Restructuring for permanent, contract & fixed-term employees
  • Ensuring PF, ESIC, bonus & gratuity alignment
  • Review of central and state-specific minimum wages
  • Alignment with National Floor Wage (NFW) requirements
  • Support for multi-state organisations
  • Assistance with rate revisions & wage notifications
  • Monthly compliance checks
  • Setting up timely salary disbursement processes
  • Drafting SOPs for payment of wages
  • Support for deductions compliance (authorised deductions only)
  • Ensuring compliance with digital salary payment norms
  • Assistance during inspections & audits
  • Calculation of statutory bonus
  • Eligibility assessment
  • Bonus budget planning and employee categorisation
  • Preparation of bonus registers & records
  • Guidance on bonus settlements and dispute prevention
  • Review of pay parity across gender & categories
  • Drafting Equal Remuneration policy
  • Ensuring compliance in recruitment, wages & benefits
  • Documentation support for inspections & audits
  • Setting up compliant working hours and overtime rules
  • Drafting shift rules & weekly rest policies
  • Preparation and maintenance of statutory registers
  • Support for digital record keeping
  • Contractor & subcontractor compliance verification

A complete audit to verify adherence to the Code on Wages:

  • Wage structure review
  • Minimum wage compliance check
  • Overtime & working hour compliance
  • Payment of wages audit
  • Bonus compliance audit
  • Documentation & registers verification
  • Detailed compliance report with corrective actions