New Delhi, Dec 3 With the recent implementation of the Labour Codes, India's bidi and cigar workforce benefits from an expanded system of wage protection, social-security coverage and workplace safeguards, the government said in a note on Wednesday.
The sector, now more formalised, moves forward with a stronger regulatory foundation that brings greater stability to workers’ livelihoods across India. Under the previous Bidi and Cigar Workers (Conditions of Employment) Act, 1966, workers in the sector operated under a narrower set of protections.
A normal working day could extend up to nine hours, though weekly work hours were capped at 48 hours. Eligibility for annual leave with wages required a worker to complete 240 days of work in a calendar year, and there was also no provision for medical examinations.
These gaps have been addressed in the new occupational safety, health and working conditions (OSHWC) code, 2020, where the normal working day is uniformly fixed at eight hours while retaining the weekly limit of 48 hours.
"It mandates that overtime be compensated at double the wage rate," the note highlighted.
Under the new labour code, annual leave with wages is now available after 180 days of work in a calendar year, making leave entitlements more worker-friendly. In addition, employees are now entitled to free annual health check-ups.
The new Labour Codes bring not only improved financial stability to bidi and cigar workers but also reduce vulnerabilities and support a more dignified and stable livelihood across the sector. Under the new provisions, no employer shall pay any employee less than the minimum wage notified by the Government.
Previously, minimum wages applied only to scheduled employees, but now they cover all employees. The government shall review or revise minimum rates of wages ordinarily at intervals not exceeding five years.
The government shall fix a minimum rate of wages for time work, piece work for different wage periods, such as by hours, day or by month, taking into account the skill of the employee, and taking into account the arduousness of work.
Floor wages will be fixed by the Central government, considering the minimum living standards of an employee, including food, clothing, etc. The central government will revise the floor wage at regular intervals.
It will reduce the migration of labour from one state to another due to similar wages. Additionally, employers must pay employees at least twice the normal wage rate for any work beyond normal working hours.
Another important safeguard under the new labour code is time-bound payment of wages.
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