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Section 9: Power of Central Government to fix floor wage

The Code on Wages, 2019 (Act No. 29 of 2019) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter II: Minimum Wages
Competent Labour Forum
Act No. 29 of 2019
Section 8 All 67 Sections of Code on Wages, 2019 Section 10

Legal Commentary & Landmark Judgments: Section 9

Section 9 of the Code on Wages empowers the Central Government to fix a mandatory national 'Floor Wage' below which no State Government can fix or reduce minimum wages.

  • Core Legal Standard: Section 9 introduces a historic statutory innovation: the National Floor Wage.
  • Sub-Section (1): Central: Under sub-section (1), the Central Government shall fix the floor wage taking into account the minimum living standards of a worker, and may fix different floor wages for different geographical areas.
  • Sub-Section (2): State: Under sub-section (2), the minimum rate of wages fixed by any State Government under Section 6 shall not be less than the floor wage fixed by the Central Government.

If the existing minimum wage fixed by a State is higher than the floor wage, sub-section (3) prohibits the State from reducing it below its current level.

Key Landmark Precedents:
  • Workmen of The Associated Cement Companies Ltd. v. The Management (1964) 5 SCR 648: The Supreme Court affirmed that living wage and fair wage benchmarks must guide statutory authorities in eliminating regional wage disparity and ensuring a baseline standard of civilized life for industrial labour.
Legal Commentary:

Section 9 prevents a 'race to the bottom' where states artificially depress minimum wages to attract industrial capital. The national floor wage operates as an irrefragable constitutional benchmark that legally binds every State Government.

Section 8 All 67 Sections of Code on Wages, 2019 Section 10