The minimum wage policy is regarded as an essential tool for improving the welfare of low-paid workers, reducing inequality and poverty within the labour market. The Government of India recently reformed the country’s wage policy and enacted the Code on Wages in August 2019. To give effect to the code, the government has now outlined the implementation mechanism by notifying the draft Code on Wages (Central) Rules in July 2020. This paper examines some of the key reform measures undertaken in the wage code and the implementation mechanism, as provided in the draft wage rules, identifies shortcomings therein, and provides suggestions for improvement.
