Confederation of Indian Industry seeks clarity over ‘wages’ in labour code

New Delhi: Industry has sought clarity from the government on the proposed definition of wages and total remuneration under the Labour Code on Wages and exclusion of managerial level workers from the overtime clause.

“The term total remuneration should be clearly defined so as to avoid any confusion and ensure simplicity and smooth implementation,” the Confederation of Indian Industry (CII) said on Thursday, suggesting that the government clarify with illustrations the various components under the new wage definition as per the code.

The Code on Wages has proposed to cap allowances at 50% of the salary, a provision if implemented could reduce the takehome salary of the employees while increasing the statutory payout of the employers on account of provident fund and other social security benefits.

Further, the CII suggested the government exclude employees employed in supervisory, managerial and administrative capacity from the overtime provisions which is double the wage rate.