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Central Govt Notifies Final Rules for 4 Labour Codes, Drops Minimum Wage Calculation Formula from Code on Wages Rules 2025

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
09 May 2026
~2 min
Source: Indian Express
Key Data:Code on Wages 2019Section 948 hours weekly cap8 hours normal day45 days approval time1991 Reptakos Brett case
Bodies:Central Government
Practice MCQs from today's news ▸
What This Article Covers

1.Final rules for all four labour codes notified, including national floor wage, 48-hour weekly work cap, and social security for gig workers.

2.Key omission: The scientific formula for minimum wage calculation, based on the 1991 Reptakos Brett SC judgement, has been dropped from the final Code on Wages Rules.

3.This removal may lead to unscientific wage fixation, higher wage disparities across states, and weaken collective bargaining power of workers.

The Big Picture
Prelims · HighMains · High

The Central Government has notified final rules for all four labour codes, a major structural reform for India's workforce. However, it has dropped the scientific criteria for calculating minimum wage from the final Code on Wages Rules, 2025, a move experts warn could lead to lower wages and increased interstate disparities for workers.

Exam Lens

Quick Exam Facts From News

Code on Wages Enacted2019
Draft Rules PublishedJanuary 2026
Final Rules NotifiedMay 2026
Normal Working Day Hours8 hours
Weekly Work Hour Cap48 hours
Contractor Licence Decision Time45 days

1-Minute Revision

  • ›Code on Wages Enacted: 2019
  • ›Draft Rules Published: January 2026
  • ›Target this Data: The weekly cap for working hours is 48 hours.
  • ›Target this Nodal Body: The central government sets the national floor wage under Section 9 of the Code on Wages, 2019.
  • ›Target this Legal Point: The criteria for minimum wage were based on the Supreme Court's 1991 judgement in the Reptakos Brett case.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Under which Section of the Code on Wages, 2019, does the central government have the power to fix a floor wage?

Q2Statement-basedHard

Consider the following statements regarding the new labour code rules:

1. The final rules specify a normal working day of eight hours and a weekly cap of 48 working hours.

2. The criteria for calculating the minimum wage, as per the draft rules, included provisions for children's education expenses amounting to 20% of the minimum wage.

3. The National Social Security Board for gig workers will include members from both houses of Parliament.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, within how many days must the approval or disapproval for a single licence for contractors working in multiple states be granted?

Q4Application/ImpactMedium

What is a key potential consequence, as highlighted by experts in the article, of removing the scientific criteria for minimum wage calculation from the Code on Wages Rules?

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