(1) In fixing minimum rates of wages for the first time or in revising minimum rates of wages under this Code, the appropriate Government shall either—
(a) appoint as many committees as it considers necessary to hold enquiries and recommend in respect of such fixation or revision, as the case may be; or
(b) by notification publish its proposals for the information of persons likely to be affected thereby and specify a date not less than two months from the date of the notification on which the proposals shall be taken into consideration.
(2) Every committee appointed by the appropriate Government under clause (a) of sub-section (1) 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 committee.
(3) After considering the recommendation of the committee appointed under clause (a) of sub-section (1) or, as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate Government shall by notification fix, or as the case may be, revise the minimum rates of wages and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue:
Provided that where the appropriate Government proposes to revise the minimum rates of wages in the manner specified in clause (b) of sub-section (1), it shall also consult concerned Advisory Board constituted under section 42.
(4) The appropriate Government shall review or revise minimum rates of wages ordinarily at an interval not exceeding five years.
Legal Commentary & Landmark Judgments: Section 8
Section 8 of the Code on Wages establishes the statutory procedure and institutional consultation framework for fixing and periodically revising minimum rates of wages.
This statutory timeframe prevents wage stagnation during inflationary periods and ensures that real wages keep pace with macroeconomic shifts.
Section 8 mandates tripartite consultation: minimum wage committees must maintain equal representation between employers and employees. Revisions must adjust both basic rates and cost of living allowances (VDA) every six months based on the Consumer Price Index.