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Chapter V · Code on Wages

Advisory Board

This chapter sets up a Central Advisory Board and a State Advisory Board in every state. They advise the government on fixing and revising minimum wages, on job opportunities for women, and on any other matter under the Code. Employers and workers sit on these boards in equal numbers, so both sides have a voice in that advice.

1 section ~3 min read Official text, PDF p. 18
HR managersEmployer associationsTrade unionsCompliance officers

Key points

  1. 1Every State Government must set up a State Advisory Board, and the Central Government must set up a Central Advisory Board. §42
  2. 2The boards advise on fixing or revising minimum wages, more job opportunities for women, how far women may be employed in the establishments or employments the government notifies, and any other matter under the Code. §42
  3. 3Employer and employee members must be equal in number, with independent members capped at one-third of the board. §42
  4. 4One-third of the members of every board, committee and sub-committee must be women. §42
  5. 5The boards only advise: the government decides, and may issue directions after considering the advice. §42
  6. 6Before the State Government issues a direction, it invites and considers representations from establishments, employees or anyone else it thinks fit. §42

At a glance

One-thirdWomen members on every board and committeeSection 42One-thirdMaximum share of independent membersSection 425State Government representatives on the Central boardSection 42Equal in numberEmployer members vs employee membersSection 42
Earlier law:Minimum Wages Act, 1948Equal Remuneration Act, 1976
42

Central Advisory Board and State Advisory Boards

In plain words

The Central and State Governments must each set up an Advisory Board, with equal employer and employee members plus independent members (at most one-third), to advise on minimum wages, women's employment and other matters under the Code. A State board may form committees and sub-committees. Each board regulates its own procedure in the manner set by rules, and terms of office are also set by rules.

(1)

The Central Government shall constitute the Central Advisory Board which shall consist of persons to be nominated by the Central Government—

(a)

representing employers;

(b)

representing employees which shall be equal in number of the members specified in clause (a);

(c)

independent persons, not exceeding one-third of the total members of the Board; and

(d)

five representatives of such State Governments as may be nominated by the Central Government.

(2)

One-third of the members referred to in sub-section (1) shall be women and a member specified in clause (c) of the said sub-section shall be appointed by the Central Government as the Chairperson of the Board.

(3)

The Central Advisory Board constituted under sub-section (1) shall from time to time advise the Central Government on reference of issues relating to––

(a)

fixation or revision of minimum wages and other connected matters;

(b)

providing increasing employment opportunities for women;

(c)

the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf; and

(d)

any other matter relating to this Code,

and on such advice, the Central Government may issue directions to the State Government as it deems fit in respect of matters relating to issues referred to the Board.

(4)

Every State Government shall constitute a State Advisory Board for advising the State Government—

(a)

in fixation or revision of minimum wages and other connected matters;

(b)

for the purpose of providing increasing employment opportunities for women;

(c)

with regard to the extent to which women may be employed in such establishments or employments as the State Government may, by notification, specify in this behalf; and

(d)

in any other matter relating to this Code, which the State Government may refer from time to time to the Board.

(5)

The State Advisory Board may constitute one or more committees or sub-committees to look into issues pertaining to matters specified in clauses (a) to (d) of sub-section (4).

(6)

The State Advisory Board and each of the committees and sub- committees thereof shall consist of persons––

(a)

representing employers;

(b)

representing employees which shall be equal in number of the members specified in clause (a); and

(c)

independent persons, not exceeding one-third of the total members of the Board or committee or sub-committee, as the case may be.

(7)

One-third of the members referred to in sub-section (6) shall be women and one among the members specified in clause (c) of the said sub-section shall be––

(a)

appointed by the State Government as the Chairperson of the Board;

(b)

appointed by the State Advisory Board as the Chairperson of the committee or sub-committee, as the case may be.

(8)

In tendering its advice in the matters specified in clause (b) or clause (c) of sub-section (4), the State Advisory Board shall have regard to the number of women employed in the concerned establishment, or employment, the nature of work, hours of work, suitability of women for employment, as the case may be, the need for providing increasing employment opportunities for women, including part time employment, and such other relevant factors as the Board may think fit.

(9)

The State Government may, after considering the advice tendered to it by the State Advisory Board and after inviting and considering the representations from establishment or employees or any other person which that Government thinks fit, issue such direction as may be deemed necessary.

(10)

The Central Advisory Board referred to in sub-section (1) and the State Advisory Board referred to in sub-section (4) shall respectively regulate their own procedure including that of the committees and sub-committees constituted by the State Advisory Board, in such manner as may be prescribed.

(11)

The terms of office of the Central Advisory Board referred to in sub-section (1) and the State Advisory Board referred to in sub-section (4) including that of the committees and sub-committees constituted by the State Advisory Board, shall be such as may be prescribed.

Source: The Code on Wages, 2019, official gazette copy, page 18

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