Wage code in India face delays in rollout

A new wage code nudging businesses to speed up the final payment of workers who resign could be delayed as several states have yet to draft rules for implementation, reports Business Standard.

Based on the law, firms are required to pay the full wages of the employee by his last working day, regardless of resignation, retrenchment or dismissal.

Currently, businesses take between 15 to 60 days to pay the final wages. 

The latest wage code will be implemented once authorities receive draft guidelines from all states and union territories. Regarded as a constitutional requirement, the wage code has to be framed following central government guidelines. 

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The new ruling is expected to come as a relief to workers who serve long notice periods and have to wait for a long period to receive their final payments.

However, this applies only to workers’ remuneration in terms of salaries and allowances, and does not cover gratuity and provident funds.