(1) Subject to the provisions of section 9, the appropriate Government shall fix the minimum rate of wages payable to employees in accordance with the provisions of section 8.
(2) For the purposes of sub-section (1), the appropriate Government shall fix a minimum rate of wages—
(a) for time work; or
(b) for piece work.
(3) Where employees are employed on piece work, for the purpose of sub-section (1), the appropriate Government shall fix a minimum rate of wages for securing such employees a minimum rate of wages on a time work basis.
(4) The minimum rate of wages on time work basis may be fixed in accordance with any one or more of the following wage periods, namely—
(i) by the hour; or
(ii) by the day; or
(iii) by the month.
(5) Where the rates of wages are fixed by the hour or by the day or by the month, the manner of calculating the wages shall be such, as may be prescribed.
(6) For the purpose of fixation of minimum rate of wages under this section, the appropriate Government,—
(a) shall primarily take into account the skill of workers required for working under the categories of unskilled, skilled, semi-skilled and highly-skilled or geographical area or both; and
(b) may, in addition to such minimum rate of wages for certain category of workers, take into account their arduousness of work like temperature or humidity normally difficult to bear, hazardous occupations or processes or underground work as may be prescribed by that Government; and
(c) the norms of such fixation of minimum rate of wages shall be such as may be prescribed.
(7) The number of minimum rates of wages referred to in sub-section (6) may, as far as possible, be kept at minimum by the appropriate Government.
Legal Commentary & Landmark Judgments: Section 6
Section 6 of the Code on Wages, 2019 mandates the Appropriate Government to fix the minimum rates of wages payable to all employees across organized and unorganized sectors, establishing an absolute statutory wage floor.
The obligation to pay minimum wages is absolute, unconditional, and independent of employer profitability.
Section 6 universalized minimum wages for over 500 million Indian workers. An employer who pays less than the minimum wage fixed under Section 6 commits a criminal offense under Section 54 and is liable to pay the arrears along with compensation up to ten times the unpaid amount under Section 45.