Code on Wages (Central) Rules, 2026

MINISTRY OF LABOUR AND EMPLOYMENT  NOTIFICATION

New Delhi, the 8th May, 2026

G.S.R. 343(E).—Whereas  the draft of the Code on Wages (Central) Rules, 2025 were published as required under sub-section (1) of section 67 of the Code on Wages, 2019 (29 of 2019) in the Gazette of India, Extraordinary, Part II, section 3, Sub-section (i), vide number G.S.R. 936 (E), dated the 30th December,

2025, inviting objections and suggestions from all persons likely to be affected thereby within a period of forty-five days from the date on which the Gazette containing the said notification were made available to the public;

And whereas, the notification was made available to the public on the 30th December, 2025; And whereas, suggestions and objections received from persons and stakeholders have been

duly considered by the Central Government;

Now, therefore, in exercise of the powers conferred by section 67 of the Code on Wages, 2019 (29 of 2019) and in supersession of –

(i)          the Payment of Wages (Procedure) Rules, 1937; (ii)         the Payment of Wages (Railways) Rules, 1938; (iii)       the Minimum Wages (Central) Rules, 1950;

(iv)        the Payment of Wages (Mines) Rules, 1956;

(v)         the  Payment  of  Wages  (Procedure)   Application   to  Scheduled employments

Rules, 1962;

(vi)        the Payment  of Wages  (Manner  of Recovery  of excess  Deductions) Rules, 1966; (vii)      the Payment of Wages (Air Transport Services) Rules, 1968;

(viii)     the Payment  of Wages  (Deductions  for National  Defence  Fund and  Defence

Savings Scheme) Rules, 1972;

(ix)      the Payment of Bonus Rules, 1975;

(x)      the Equal Remuneration Rules, 1976; and

(xi)     the Payment  of Undisbursed  Wages  (Air Transport  Services)  Rules, 1988; (xii)    the Payment of Undisbursed Wages (Mines) Rules, 1989;

(xiii)   the Central Advisory Committee on Equal Remuneration  Rules, 1991; (xiv)   the Payment of Wages (Nomination) Rules, 2009;

(xv)    the Minimum Wages (Central Advisory Board) Rules, 2011; (xvi)    the Code on Wages (Central Advisory Board) Rules, 2021;

(xvii)  the Ease of Compliance to Maintain Register under Equal  Remuneration  Act,  1976  (25 of  1976), Minimum Wages Act, 1948 (11 of 1948) and the Payment of Wages Act, 1936 (4 of

1936),

except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following rules, namely:-

CHAPTER I PRELIMINARY

1. Short title and commencement.- (1) These rules may be called the Code on Wages (Central) Rules, 2026.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.- (1) In these rules, unless the context otherwise requires. —

(a) “appeal” means an appeal under sub-section (1) of section 49;

(b) “appellate authority” means the appellate authority appointed by the Central Government under sub-section (1) of section 49;

(c) “appendix” means Appendix annexed to these rules;

(d) “authority” means the authority appointed by the Central Government under sub-section (1) of section 45;

(e) “Board” means the Central Advisory Board constituted by the Central Government under sub-

section (1) of section 42;

(f)  “Chairperson” means the Chairperson of the Board;

(g) “Code” means the Code on Wages, 2019 (29 of 2019);

(h)  “Committee” means a committee appointed by the Central Government under clause (a) of sub- section (1) of section 8;

(i) “day” means a period of twenty-four hours beginning at mid-night;

(j) “electronically”  means any information  submitted  by email or maintained  or displayed  on the designated portal or mobile application or website or digital payment in any mode for the purposes of the Code;

(k) “form” means the forms appended to these rules;

(l) “geographical area” means the areas notified by the Central Government from time to time.

(m) “highly skilled occupation” means an occupation which calls in its performance a specific level of perfection and required competence acquired through intensive technical or professional training or practical occupational experience for a considerable period and also requires of an employee to  assume  full  responsibility  for  judgment  or  decision  involved  in  the  execution  of  such occupation;

(n)  “Inspector-cum-Facilitator” means a person appointed by the Central Government, under sub- section (1) of section 51;

(o) “member” means a member of the Board;

(p) “normal rate of wage” means wage as defined under clause (y) of section 2;

(q)  “registered trade union” means a trade union registered under the Industrial Relations Code, 2020 (35 of 2020);

(r)  “section” means a section of the Code;

(s) “semi-skilled   occupation”   means  an  occupation   which  in  its  performance   requires  the application of skill gained by the experience on job which is capable of being applied under the supervision  or guidance  of a skilled employee  and includes  supervision  over  the unskilled occupation;

(t) “skilled  occupation”  means  an  occupation  which  involves  skill  and  competence  in  its performance through experience on the job or through training as an apprentice in a technical or vocational institute and the performance of which calls for initiating and judgment;

(u) “unskilled  occupation”  means  an  occupation  which  in  its  performance  requires  the application of simply the operating experience and involves no further skills.

(2)  Words  and  expressions  used  in  these  rules  but  not defined  herein, shall have the meanings respectively assigned to them under the Code.

CHAPTER II

MINIMUM WAGES

3.      Manner of calculating minimum rate of wages.–(1) For the purposes of sub-section (5) of section

6, the minimum rate of wages shall be fixed by the day basis keeping in view the criteria which shall be separately specified by the Central Government by special or general order:

Provided that the Central Government shall not fix the minimum wages of the Central Government employees under this Code.

(2) Where the rate of wages for a day is fixed, such amount shall be divided by eight for fixing the rate of wages for an hour and multiplied by twenty six for fixing the rate of wages  for a month and  in such

division  and multiplication  the factors  of one-half  and more than one-half  shall be rounded  as  next

figure  and the factors  less than one-half shall be ignored.

(3) In case there is less than six days working week, the hourly rate of minimum wages so calculated shall be used to derive the minimum wages for the day.

4. Interval for revision of variable dearness allowance.- The cost of living allowance and the cash value of the concession in respect of essential commodities  at concession rate shall be computed once before 1st April and then before 1st October in every year to revise  the  variable  dearness  allowance payable  to  the  employees  on  the  minimum wages considering the Average Consumer Price Index Number for Industrial Workers published by the Labour Bureau, Ministry of Labour and Employment, Government  of India.

5. Hours of work for normal working day. – (1) The number of hours of work which shall constitute normal working day for an employee whose wage period is on a daily basis shall be eight hours and interval for rest shall be in accordance with notification issued in this regard under Occupational Safety, Health and Working Conditions Code, 2020 (37 of 2020).

(2) The number of hours of work which shall constitute a normal working day for an employee whose wage period is other than on a daily basis shall be so fixed that the total number of weekly working hours shall not exceed forty-eight hours.

6. Weekly day of rest.— (1) Subject to the provisions of this rule, an employee shall be allowed rest for one day in every week   (hereinafter  referred  to as “the rest day”), in case of six-day  working  week which shall ordinarily be a Sunday and in case of  less than six-days w o r k i n g  week, t h e rest d a y shall include Saturday  and Sunday, however, the employer may fix any other day of the week as the rest day for any employee or class of employees:

Provided that in a six-days working week or less than six days working week, as the case may be, the remaining days of the week shall be paid rest days for such employees:

Provided further that an employee shall be entitled for the rest day under this sub-rule, if he has worked under the same employer in case of six-days working week for a continuous period  of not less than six days and in case of less than six-days working week for a continuous period of the stipulated number of working days, as the case may be:

Provided also that the employee shall be informed of the day fixed as the rest day and of any subsequent change in the rest day before the change is effected, by display of a notice to that effect at a conspicuous place in the place of employment or electronically.

Explanation.-  For the purpose  of computation  of the continuous  period  of not less than six days or

the stipulated number of days worked in a week specified in the second  proviso to this sub-rule,

(a) any  day  on  which  an  employee  is  required  to  attend  for  work  but  is  given only an allowance for attendance and is not provided with work;

(b) any day on which an employee is laid off on payment of compensation under the Industrial

Relations Code, 2020 (35 of 2020), and;

(c)  any leave or holiday, with or without pay, granted by the employer to an employee in the period of six days or during the stipulated number of working  days of a week, as the case may

be, immediately preceding the rest days.

(2)  An employee  shall not be required  or allowed  to work on the rest day unless  he is  allowed a substituted rest day on one of the working days in a week immediately before or after the rest day:

Provided that no substitution shall be made, which shall result in the employee working for more than ten days consecutively without a rest day.

(3)     Where any employee works on a rest day and has been given a substituted rest day on any working days before or after the rest day, the rest day shall, for the purposes of calculating the weekly hours of work, be included in the week in which the substituted rest day occurs.

(4)     An employee shall be granted for rest day, wages calculated at the rate applicable to the previous working day; where he works on the rest day and has been given a substituted rest day, then,  he  shall be paid wages for the rest day on which h e worked, at the overtime rate and wages for the substituted rest day at the rate applicable to the previous working day:

Provided that in case of six-days working week where–––

(i) the minimum  rate of wages of the employee  as notified under the Code has been worked out by

dividing the minimum monthly rate of wages by twenty- six; or

(ii) the actual daily rate of wages of the employee has been worked out by dividing the monthly rate of wages by twenty-six and such actual daily rate of wages is not less than the notified minimum daily rate of wages of the employee, then, no wages for the rest day shall be payable; and

(iii) the employee works on the rest day and has been given a substituted rest day,  then, the employee shall be paid, only for the rest day on which he worked, an amount equal to the wages payable at the overtime rate, which shall not be less than twice the normal rate of wages,

and, in case any dispute arises whether the daily rate of wages has been worked out in accordance with the provisions of this proviso, the Chief Labour Commissioner  (Central)   or the Deputy Chief Labour Commissioner  (Central) having jurisdiction may, on application made in this behalf, decide the same, after giving an opportunity to the parties concerned to make written representations:

Provided further that in case of an employee governed by a piece-rate system, the employee shall be paid wages for the rest day on which he works, at the overtime rate and wages  for the substituted rest day at the rate applicable to the previous working day.

Explanation.- For the purpose of this sub-rule, the words ‘previous working day’ means the last day on which the employee has worked, which precedes the rest day or the substituted rest day, as the case may be; and where the substituted rest day falls on a day immediately after the rest day, the previous working day means the last day on which the employee has worked, which precedes the rest day.

(5)   The  provisions  of this rule shall  not operate  to the prejudice  of more favourable terms, if any, to which an employee may be, entitled under any other law or under the terms of any award, agreement or contract of service, and in such a case, the employee shall be entitled only to more favorable terms.

Explanation.– For the purposes of this rule, the expression ‘week’ shall mean a period of seven days

beginning at midnight on Saturday night.

7. Night shifts. —Where an employee works on a shift which extends beyond midnight, then, ––––

(i) a rest day for the whole day for the purposes of rule 6 shall, in this case means a period of twenty-four consecutive hours beginning from the time when his shift ends; and

(ii) the following day in such a case shall be deemed to be the period of twenty-four hours beginning from the time when such shift ends and the hours after midnight during which such employee was engaged in work shall be counted towards the previous day.

8. Extent and conditions  of working hours for certain categories  of employees.-  The  number  of working hours for certain categories of employees under sub-section (2) of section 13 may exceed the normal working hours, specified in rule 5:

Provided that the overtime of these categories of employees shall be as per section 14.

9. Longer wage period. – The longer wage period for the purposes of minimum rate of wages under section 14 shall be by the month.

CHAPTER III FLOOR WAGES

10.     Manner of fixing floor wage.- (1) For fixing the floor wage, the Central Government may consult the Board, taking into account the minimum living standard including the food, clothing, housing and any other factors considered appropriate by the Central Government from time to time.

(2) The consultation  under  sub-rule  (1) may be circulated  to all the State Governments  for  further consultation and their comments.

(3)  The consultation of the Board and the views of the State Governments received may be considered before fixing the floor wage under sub-rule (1).

(4) The Central Government may revise the floor wage fixed under sub-rule (1) ordinarily  at an  interval not exceeding  five years and undertake  adjustment  for variations  in the cost of living periodically in consultation with the Board and the State Governments.

CHAPTER IV PAYMENT OF WAGES

11.     Payment  of  wages  to  contractual  employee.-  Where  the  employees  are  employed  in  an establishment   through a contractor, the company or firm or association or any other person who is  the proprietor of the establishment shall pay to the contractor, the amount payable in  respect  of the wages of employees  in accordance  with the provisions  of the Code.

Explanation:  -For the purpose  of this rule,  the expression  “firm”  shall  have  the  meaning as assigned to it in the Indian Partnership Act, 1932 (9 of 1932).

12.     Payment of wages for less than normal working day.— An employee shall not be entitled   to receive wages for a full normal working day under section 10, in case the employee had agreed to work on part time basis, as per the terms of the employment  or not entitled to receive such wage under any other labour law for the time being in force.

13.     Recovery  of deductions.––  As per sub-section (4) of section 18, where  the  total  deductions authorised  under  sub-section  (2) of section  18 exceed  fifty per cent. of the wages  of  an employee, the excess  shall be carried  forward  and  recovered  from  the  wages  of  succeeding  wage  period, in instalments so that the recovery in any month shall not exceed the fifty per cent. of the wages of the employee in that month.

14.     Authority  for  approving  acts  and  omissions.––  The  Deputy  Chief  Labour  Commissioner (Central) having jurisdiction  over the place of work of the employee concerned shall be the authority for approving acts and omissions  for the purposes of sub-section (1) of section 19.

15.     Manner of exhibiting notice specifying acts and omissions.––  A  notice  referred  to  in  sub- section (2) of section 19 shall be displayed in physical form or electronically in Hindi, English and local language at the conspicuous place in the premises of the work place in which the employment is carried on and a copy of the notice shall be sent electronically or by speed post to the Inspector-cum-Facilitator having jurisdiction.

16. Procedure for imposing fines.–– (1) As per sub-section (3) of section 19, the employer shall give intimation electronically  or in writing to the employee concerned specifying therein the particulars of acts and omissions done by the employee, warranting the imposition of fine, for showing cause within seven days.

(2) On establishment of charges, fine shall be imposed on the delinquent employee.

(3) Wherein  no  reply  is  received  from  the  employee  within  the  scheduled  period,  fine  shall be imposed and the same shall be intimated to the employee within fifteen days of the imposition of such fine.

17.     Intimation of deduction for absence from duty.––(1) When an employer intends to make any deduction  in  pursuance  of the proviso to sub-section  (2) of section 20, the employer  shall intimate electronically  or in writing to the  employee   concerned   regarding   their intention   of   making  such deduction  seeking their reply within a period of seven days and on establishment of charges, deduction shall be made from the wages of the employee in accordance with sub- section (3) of section 18.

(2) If no reply is received from the employee concerned within seven days, the employer   shall  make such deduction  from the wages and the same shall be intimated to the employee within fifteen days of the date of such deduction.

18.     Procedure for deduction for damage or loss.––(1) Any employer intending to make deduction for damages  or loss under  sub-section (1) of section 21 from the wages of an employee, shall give the employee an opportunity to submit explanation within a period of seven days, showing cause, the value of the damage caused or loss of goods expressly entrusted to the employee.

(2) On establishment of the charges, deductions shall be made from the wages of the employee  in accordance with sub-section (3) of section 18.

(3) In case no reply is received from the employee concerned within seven days, the employer shall make such deduction from the wage of the employee concerned and the same shall be intimated to the employee within fifteen days of the date of such deduction.

19.     Conditions regarding recovery of advance:–– The recovery of,–––

(i) advances of money given to an employee after the employment begins under clause (b) of section 23;

or

(ii) advances of wages to an employee not already earned under clause (c) of section 23,

as the case may be, shall be made by the employer  from the wages of the concerned  employee in instalments determined by the employer, so as any or all instalments in a wage period, shall not exceed fifty per cent of the wages of the employee subject to the ceiling specified in rule 13 in that wage period and the particulars of such recovery shall  be recorded in the register maintained in Form-IV.

20.     Deduction for recovery of loans:–– As per section 24, deductions for recovery of  loans granted and the interest due in respect thereof shall be as per extant instructions or guidelines of the  Central Government  regulating  the  extent  to which  such  loans  may  be granted  and the rate of interest that shall be payable thereon.

CHAPTER V PAYMENT OF BONUS

21.     Payment  of bonus to contractual  employee.-  Where in an establishment,  the employees are employed through a contractor and the contractor fails to pay the  bonus under section 26, the company or firm or association or other person as referred to in the proviso to section 43 shall, on the written information of such failure given by the employees or any registered trade union or unions of which the employees  are members  and on confirming  such  failure,  pay minimum bonus to the employees.

22.     Calculation for sixth accounting year:–– For the sixth accounting year, set on or set off, as the case may be, shall be made under clause (i) of sub-section (7) of section 26, in the manner illustrated in Appendix A, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off, in respect of the fifth and sixth accounting years.

23.     Calculation for seventh accounting year:–– For the seventh accounting year, set on or set off, as the case may be, shall be made under clause (ii) of sub-section  (7) of section 26, in the  manner illustrated in Appendix A, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.

24.     Computation  of  gross  profits  for  banking  company:––  The  gross  profits  derived  by  an employer from an establishment in respect of the accounting year shall in the case of banking company under clause (a) of section 32, be calculated in the manner specified in Appendix B.

25.     Computation of gross profits for  other than banking company:–– The gross profits derived

by an employer  from  an establishment  in respect  of the accounting  year shall,  in a case other than banking company under clause (b) of section 32, be calculated in the manner specified in Appendix C.

26.     Deduction  of further  sums from gross profit:–– The  further sums  specified in respect of the employer in Appendix D shall be deducted from the gross profit as prior charges under clause (c) of section 34.

27.     Manner of carrying forward when allocable surplus exceeds maximum bonus payable:–– Under sub-section (1) of section 36, where for any accounting  year, the allocable  surplus exceeds  the amount  of maximum  bonus  payable to the employees  in the establishment  under  section  26, then, the  excess  shall,  subject to a limit of twenty per cent. of the total salary or wage of the employees employed  in the establishment  in that  accounting  year, be  carried  forward  for being  set on in the succeeding  accounting  year and so on upto and inclusive of the fourth accounting  year to be utilised for the purpose of payment of bonus in the manner as illustrated in Appendix A.

28.     Manner of carrying forward when there is no allocable surplus for payment of minimum bonus:–– Under sub-section  (2) of section 36,   where for any accounting  year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 26 and there is no amount or sufficient amount carried forward and set on under rule 27 which shall be utilised for the purpose of payment of   the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on upto and inclusive of the fourth accounting year in the manner as illustrated in Appendix A.

CHAPTER VI

CENTRAL ADVISORY BOARD

A. Procedure of Central Advisory Board

29.     Constitution of the Board.- The Board shall be constituted under sub-section (1) of section 42 by the Central Government consisting of persons to be nominated by the Central Government.

30.     Meeting of the Board. – The Chairperson of the Board may, subject to the provisions of rule 32, call a meeting of the Board at any time as deemed fit:

Provided  that  on  requisition  in  writing  from  not  less  than  one  half  of  the  members,  the

Chairperson shall call a meeting within thirty days from the date of the receipt of such requisition.

31.     Notice of meetings. – The Chairperson shall fix the date, time and place of every meeting and a notice in writing containing the aforesaid particulars along with a list of business to be conducted  at the meeting  shall be sent to each member  by speed  post or electronically at least fifteen days before the date fixed for such meeting:

Provided that in the case of an emergent meeting, notice of seven days may be given to every member.

32.     Functions of Chairperson. – The Chairperson shall-

(i) preside at the meetings of the Board:

Provided that in the absence of the Chairperson, the members shall elect from amongst themselves by a majority  of votes,  a member  who shall preside  at such meeting;

(ii) decide agenda of each meeting of the Board;

(iii) where in the meeting of the Board, if any issue has to be decided by voting, conduct  the voting and count or cause to be counted the secret voting in the meeting; and

(iv) such other functions that the Central Government may assign from time to time.

33.     Quorum:––No  business  shall  be  transacted  at  any  meeting  unless  at  least  one-third of the members  and at least one representative  member  each of both the employers  and the  employee  are present:

Provided that, if at any meeting less than one-third of the members are present,  the Chairperson may adjourn the meeting to a date not later than seven days from the  date of the original meeting and it shall thereupon be lawful to dispose of the business at such adjourned meeting irrespective of the number of members present:

Provided further that the date, time and place of such adjourned meeting shall be intimated to the members.

34.     Disposal of business  of Board.- All business  of the Board shall be considered at the meeting of the Board and shall be decided by a majority of the votes of members present and voting and in the event of an equality of votes, the Chairperson shall have a casting vote:

Provided that the Chairperson may, if he thinks fit, direct that any matter shall be decided by the

circulation of necessary papers and by securing written opinion of the members:

Provided further that no decision on any matter under the preceding proviso shall be taken, unless supported by not less than two-thirds majority of the members.

35.     Method of voting.- Voting  in  the  Board  shall  ordinarily  be  by  show  of  hands,  but  if any member asks for voting by ballot or if the Chairperson  so decides, the voting shall be by secret ballot and held in the manner as the Chairperson may decide.

36.     Proceedings of meetings.- (1) The proceedings of each meeting of the Board showing inter alia the names of the members  present thereat shall be forwarded  to each member   and  to  the  Central Government  as soon  after  the  meeting  as possible  and  in any case, not less than seven days before the next meeting.

(2) The proceedings of each meeting of the Board shall be confirmed with such modification, if any, as

may be considered necessary at the next meeting.

37.     Summoning of witnesses and production of documents:–– (1) The Chairperson  may  summon any person  to appear  as a witness  if required  in the course  of the discharge of his duty and require any person to produce any document.

(2)       Every person who is summoned and appears as a witness before the Board shall be entitled to an allowance  for expenses  incurred  in accordance  with the scale for the time being in  force for payment of such allowance to witnesses appearing before a civil court.

B.  TERMS OF OFFICE OF MEMBERS OF BOARD

38.     Term of office of members of Board.- (1) The term of office of the Chairperson  a n d  members, shall be three years commencing from the date of appointment or nomination, as the case may be:

Provided that the Chairperson or a member shall after the expiry of the said period of three years,

continue to hold office until their successor is appointed or nominated.

(2) An independent  member of the Board nominated to fill a casual vacancy shall hold office for the remaining  period  of the term of office of the member  in whose  place that independent  member  is nominated or till the time a regular incumbent joins.

(3) The official members of the Board shall hold office till they are replaced by respective such other

official members.

(4) Notwithstanding anything contained in this rule, the members of the Board shall hold office during the pleasure of the Central Government.

39.     Travelling allowance. – (1) The travelling allowance of an official member of the Board shall be governed by the rules applicable to them for the journey performed on official duties and shall be paid by the authority paying the salary.

(2) The non-official members of the Board shall be paid travelling allowance for attending the meeting of the Board as per the instructions issued by the Department of Expenditure, Ministry of Finance, Government of India from time to time.

Explanation.- For the purposes of this rule, the expression “official member” shall mean regular government  officers,  officiating  as members  of the Board  in that capacity  and  “non-official member” shall be who are not “official members”.

40.     Officers   and   staff  of  Board.   –   The   Central   Government    may  provide  the  necessary infrastructure, as it may think necessary for the proper functioning of the Board.

41.     Eligibility  for re-nomination  of members  of Board. – An outgoing  member shall be eligible for re-nomination for the membership of the Board for not more than total two terms.

42.     Resignation of Chairperson and members of Board. – (1) A member of the Board, other than the Chairperson, may, by giving notice in writing to the Chairperson, resign from the membership and the Chairperson may resign by a letter  addressed to the Central Government.

(2) The resignation shall take effect from the date of communication  of its acceptance or on the expiry

of thirty days from the date of resignation, whichever is earlier.

(3) When a vacancy occurs or is likely to occur in the Board, the Chairperson  shall submit  a  report  to the Central  Government  immediately  and the Central Government shall, take steps to fill the vacancy in accordance with the provisions of the Code.

43.     Cessation of membership. – If a member of the Board fails to attend three consecutive meetings without prior intimation to the Chairperson, he shall cease to be a member thereof.

44.     Disqualification.  – (1) A person shall be disqualified  for being nominated  as and for  being a

member of the Board––

(i) if he is declared to be of unsound mind by a competent court; or

(ii) if he is an un-discharged insolvent; or

(iii) if before  or after the commencement  of the Code,  he has been convicted  of an offence involving moral turpitude.

(2) If any question arises whether a person has been subject to disqualification  under sub-rule (1), the decision of the Central Government thereon shall be final.

CHAPTER VII

PAYMENT OF DUES, CLAIMS, ETC.

45.     Payment  of undisbursed  dues  to nominees  in case  of death  of employee  :–– (1) (a)  In pursuance of clause (a) of sub-section  (1) of section 44, every employee  shall make a declaration  in Form-VII in physical  form or electronically,  nominating  a person conferring  the right to receive the amount that may stand in the credit of the employee on the event of death,  before that amount  standing to the credit of such employee  has become  payable  or where the amount has become payable, before payment has been made.

(b) If the employee has a family at the time of making nomination,  the nomination shall be in favour of the spouse or the spouse in preference followed by one or more members of the family:

Provided that nomination made by an employee having a family in favour of a person other than member of the family shall be invalid:

Provided further that a fresh nomination towards the spouse of the employee shall be made by the employee on marriage and any nomination made before such marriage shall be deemed to be invalid.

(c) Where the nomination is wholly or partly in favour of a minor, the employee may appoint a major person of the family, to be the guardian of the minor nominee or where there is no major person in the family, the employee  may by discretion,  appoint  any other person   to be the  guardian  of the minor nominee.

(d)  If the employee  nominates  more than one member, the nomination  shall specify  the amount or share payable  to each of the nominees  at employee’s  own discretion so as to cover the whole of the amount that may stand to the credit of the employee.

(2) Where any amount payable to an employee under the Code is due after the death or  on  account  of whereabouts  not being  known of the employee  and the amount  could  not be paid to the nominee of the employee until the expiry of three months from the date the amount  had become payable, then, such amount shall be deposited by the employer with the Deputy Chief Labour Commissioner (Central) having jurisdiction, who shall disburse the amount to the person nominated by the employee after ascertaining the identity  o f  the employee  within two months of the date on which the amount was so deposited.

46.     Deposit of undisbursed dues in case of death of employee:–– (1) Where  any amount  payable to  an  employee   under   clause  (b) of sub-section  (1) of section  44  remains  undisbursed  since no nomination has been made by such employee or for any other reason, such  amounts  could not be paid to the nominee  of employee, all such amounts  shall be deposited  by  the employer after the expiry of six-months from the date the amount become payable,  with  the  Deputy  Chief  Labour  Commissioner (Central) having jurisdiction before the expiry of the fifteenth day after the last day of the said period of six months.

(2) The amount to be deposited under sub-clause (1) shall be through bank transfer or through a crossed demand draft obtained from any scheduled bank in India drawn in favour of such Deputy Chief Labour Commissioner (Central).

47.     Manner  of dealing  with deposit of undisbursed  dues:– The undisbursed amount in sub rule (1) of rule 46 (hereinafter in this rule referred to as “the amount”) shall remain with the concerned Deputy Chief Labour Commissioner (Central) and be invested in the Central or State Government Securities or deposited as a fixed deposit in a scheduled bank.

(2) The concerned  Deputy Chief Labour Commissioner  (Central) shall   exhibit, as soon  as  may  be possible,  a notice  containing  such  particulars  as the  Deputy  Chief Labour  Commissioner  (Central) considers  sufficient  for information  at least  for fifteen days on the notice board and also publish such notice in any two local newspapers of vernacular  language  commonly  understood in the area in which undisbursed  wages were earned and also in two local newspapers in vernacular language in the area of permanent residence of the employee.

(3)  Subject  to  the  provisions  of  sub-rule  (4),  the  concerned  Deputy  Chief  Labour  Commissioner (Central)  shall  release  the  amount  to the  nominee  or to that  person who has claimed such amount, as the case may be, in whose favour such Deputy Chief Labour Commissioner  (Central) has decided, after giving the opportunity of being heard.

(4) In case the undisbursed amount remains unclaimed for a period of seven years, the same shall  be dealt  as directed  by the Central  Government  from time to time in this behalf.

CHAPTER VIII

FORMS, REGISTERS  AND WAGE SLIP

48.     Returns. – The returns shall be filed electronically by every employer of an establishment to which

the Code applies in the Forms  under  the  Occupational,  Safety Health and Working Conditions Code,

2020 (37 of  2020).

49.     Form and procedure for filing claims:––  (1) A single  application  on behalf of or in  respect of any number of or group of employees employed in the same establishment wherein their  claims relate to the same wage period or any incident of discrimination, may be filed under sub-section (5) of section

45 in Form-II, manually or electronically along with documents  specified  in the said Form, before  the authority  notified  by  Central Government  under sub-section (1) of section 45 to hear and determine claims which  arise under the provisions of the Code.

(2)  Where  an application  under  sub-rule  (1) is filed,  the authority  shall  serve  upon  the  employer electronically or by speed post, a notice in Form VIII to appear before them on the date specified in the notice with all relevant documents and witnesses, if any, and shall inform the applicant of the date so specified.

(3)  In case where  the  employer  or  their  representative  fails  to  appear  on  the  specified  date,  the authority may hear and determine the application ex-parte.

(4) In case where the applicant or their representative fails to appear on the specified date without any

reasonable cause shown in advance, the authority may dismiss the application.

50.     Procedure  for filing appeal:–– (1) Any person aggrieved  by an order passed by the authority under sub-section (2) of section 45 may prefer an appeal under sub-section (1)  of section  49 in Form- III  electronically  or  by  speed  post,  along  with  documents mentioned  by  the  appellant  in  the  said Form,  to the appellate  authority  having jurisdiction:

Provided that no appeal by an employer shall be admitted unless at the time of preferring the appeal, the appellant has deposited the claim amount with the appellate authority.

(2) Where an appeal under sub-section (1) of section 49 is entertained,  the appellate Authority  shall serve  upon  the  respondent  electronically  or  by  speed  post,  a  notice  in Form VIII to appear before them on the date specified in the notice and shall inform the appellant of the date so specified.

(3)  In case where  the  employer  or  their  representative  fails  to  appear  on  the  specified  date,  the authority may hear and determine the application ex-parte.

(4)  In case where  the  applicant  or  their  representative  fails  to  appear  on  the  specified  date,  the authority may dismiss the appeal.

51.     Form  of register,  etc.- (1) The employer of all establishments to which the Code applies shall maintain under sub-section (1) of section 50, electronically or in physical form in the formats appended to these rules, the following registers:––

(i)Employee Register in Form I;

(ii)Register of Wages, Overtime, Advances, Fines and Deductions for Damage and Loss in Form

IV; and

(iii)Attendance Register-cum-Muster Roll in Form IX.

(2)    All fines and all realisations  referred to in sub-section  (8) of section 19 shall be recorded in a register to be kept by the employer electronically  or in physical form in Form – IV and the authority referred  to  in  sub-section  (8)  shall  be  the  Deputy  Chief  Labour  Commissioner  (Central)  having jurisdiction.

(3)     All deductions  and realisations  referred to in sub section (3) of section 21 shall be recorded in a register to be kept by the employer electronically or in physical form in Form IV.

(4)      The registers maintained under these rules shall be preserved for a period of five years after the date of last entry made therein.

52.     Wage slip. –Every  employer  shall  issue  wage  slips,  electronically  or in physical  form to the employees in Form V under sub-section (3) of section 50 on or before payment of wages.

53.     Manner of holding enquiry:–– (1) Where a complaint is filed before the officer appointed under sub-section (1) of section 53 (hereinafter in this rule referred to as “the officer”) in respect of the offences referred to in said sub-section, either by an officer authorised for such purpose by the Central Government or  by  an  employee  aggrieved  or  a  registered  trade  union  registered  under the Industrial Relations Code, 2020 (35 of 2020) or an Inspector-cum-Facilitator, the officer after considering  such evidence as produced by the complainant,  is of the opinion that an offence has been committed, shall issue summons

to the offender  on the address specified in the complaint fixing a date for his appearance.

(2) If the offender to whom the summons has been issued under sub-rule (1) appears or is produced before the officer, the officer shall explain the offender the offence complained  against and if the offender pleads guilty, the officer shall impose penalty in accordance with the provisions of the Code and if the offender  does  not  plead  guilty,  the  officer  shall  take  evidence  of  the  witnesses  produced  by  the complainant on oath and provide opportunity of cross examination of the witnesses so produced.

(3) The officer shall record in writing the statement of the witnesses on oath and in cross examination and take the documentary evidence on record.

(4) The officer shall, after the complainant’s evidence is complete, provide an opportunity of defence to the accused  person  and the witnesses  produced  by the accused  shall be cross  examined  after their statements on oath by the complainant and documentary evidence in defence shall be taken on record by the officer.

(5) The officer shall after hearing the parties and considering the evidence both oral and documentary,

decide the complaint in accordance with the provisions of the Code.

54.     Manner of composition of offences:––(1) An accused person desirous of composition of offence under sub-section (1) of section  56 may make an application  in Form VI electronically  or manually to the Gazetted Officer notified under said sub-section.

(2) The Gazetted Officer referred to in sub-rule (1) shall on receipt of such application, satisfy   as to whether the offence is compoundable or not under the Code and, if the offence is compoundable and the accused person agrees for the composition, compound  the offence  for a  sum  of fifty per cent  of the maximum  fine  provided  for such offence under the Code, to be paid by the accused within thirty days of the order of composition issued by such officer.

(3) The  compounding  officer  shall  issue  a  composition  certificate in Part-B of Form-VI within ten days of receipt of the composition amount, to such person from whom such amount has been received in compliance of the composition notice.

(4) In case where a person so noticed fails to deposit the composition amount within the time specified by the compounding  officer, prosecution  shall be instituted  before the competent   court  against such person for such offence in respect of which the compounding notice was issued.

(5) Where   the  offence   has  been   compounded   under   sub-rule   (2)  after   the  institution   of  the prosecution, the officer shall send a copy of such order for intimation  to the officer  referred  to  in sub- section  (1) of section  53 for action under sub-section (6) of section 56.

*  (Highly Skilled/Skilled/Semi skilled/Unskilled)

** (Permanent/Temporary/Fixed  Term/Trainee/Badli)

FORM-II

[See sub rule (1) of rule 49]

[SINGLE APPLICATION UNDER SUB-SECTION (5) OF SECTION 45]

BEFORE THE AUTHORITY APPOINTED UNDER SUB SECTION (1) OF SECTION 45 OF THE CODE ON WAGES, 2019 (29 OF 2019)

FOR………….                     AREA……… Application No

………………………………………………………………………………. of 20……

Between ABC and (State the number)………other……………………………………………………………………..Applicant

(Through employees concerned or registered trade union or Inspector- cum- Facilitator

Address……………………………………………………………………………….

And XYZ…………………………………………………………………………………………….

Address………………………    The

application states as follows:

(1)  The applicant(s) whose name(s) appear in the attached schedule was/were/has/have been  employed        from

……………to……..      as………………(category)      in ……………………………………………………………………. (establishment)

Shri/M/s………engaged in ………….(nature of work) which is/are covered by the Code on Wages, 2019.

(2) The opponent(s) is/are the employer(s) within the meaning of section 2(l) of the Code on Wages, 2019.

(3) (a)The applicant(s) has/ have been paid wages at less than the minimum rates of wages fixed for  their category

(categories) of employment(s) under the Code by Rs…. …………..Per day for the   period(s) from………………………to………

……………….

(b) The applicant(s) has/ have not been paid wages at Rs …………………………… Per day for the weekly days of

rest from ……………………….to…

(c)   The   applicant(s)   has/   have   not   been   paid   wages   at   overtime   rate(s)   for   the   period

from…………………..to….

(d) The applicant(s) has/have not been paid wages for period from ………………to………. (e)Deductions have been

made which are in contravention of the Code, from the wage(s) of the applicant(s) as per details specified in the

annexure appended with this application.

(f) The applicant(s) has/have not been paid minimum bonus for the accounting year ……………..

(4) The applicant(s) estimate(s) the value of relief sought by him/ them on each amount as under:

(a) Rs…….

(b) Rs…….

(c) Rs……. Total

Rs…….

(5) The applicant(s), therefore, pray(s) that a direction may be issued under section 45(2) of the Code on Wages,

2019 for;

(a) payment of the difference between the wages payable under the Code and the wages actually paid,

(b) payment of remuneration for the days of rest

(c) payment of wages at the overtime rates,

(d) compensation amounting to Rs………………………

(6) The applicant(s) do hereby solemnly declare(s) that the facts stated in this application are true to the best of

his/their knowledge, belief and information.

Dated

Signatire of thumb-impression of the Emplyed person(s) of official of a registerd trade union duly authorized or inspector-cum-Faciliator

Note:The applicant(s), if required, may append annexures containing details, with this application.

A.B.C

FORM III

(See sub rule (1) of rule 50)

APPEAL UNDER SECTION 49(1) OF THE CODE ON WAGES, 2019 BEFORE THE APPELLATE AUTHORITY UNDER THE CODE ON WAGES, 2019

Address………………………………………………………………………………………

… ………………….APPELLANT

C.D.E.

Vs.

Address………………………………………………………………………………………………..………

RESPONDENT DETAILS OF APPEAL:

1. Particulars of the order against which the appeal is made : Number and date :

The authority who has passed the impugned order: Amount awarded:

Compensation awarded , if any :

2. Facts of the case :

(Give here a concise statement of facts in a chronological order, each paragraph containing as nearly as possible a separate issue or fact).

3. Grounds for appeal :

4. Matters not previously filed or pending with any other Court or any Appellate Authority:

The appellant further declares that he had not previously filed any appeal, writ petition or suit regarding the matter in respect of which this appeal has been made, before any Court or any other Authority or Appellate Authority nor any such appeal, writ petition or suit is pending before any of them.

5. Reliefs sought :

In view of the facts mentioned above the appellant prays for the following relief(s) :—[Specify below

the relief(s) sought]

6. List of enclosures:

1.

2.

3.

4.

……….. Date : Place :

Signature of the appellant.

For office use

Date of filing or

Date of receipt by post

Registration No.

Authorized Signatory

*Note: Required in case register is maintained physically.

Note: Required in case register is maintained physically

FORM VI Part – A

[See sub rule (1) of rule 54]

APPLICATION UNDER SUB-SECTION (4) OF SECTION 56 FOR COMPOSITION OF OFFENCE

1. Name of applicant                                                             :

2. Father’s  / Spouse name                                              :

3. Address of the applicant                                                :

4. Particulars of the offence:….. ..…………………………………………………………………………

…………………………………………………………………………………………………………………

5. Section of the Code under which the offence is committed :

……………………………………………………………..

6. Maximum fine provided for the offence under the Code :

………………………………………………………………….

7. Whether prosecution against the applicant is pending or not

……………………………………………………..

8. Whether the offence is first offence or the applicant had committed any other offence prior to the offence. If yes, then, full details of the prior offence.

…………………………………………………………………………………………………………………

9. Any other information which the applicant desires to provide

…………………………………………………………………………………………………………………

Dated:

Applicant (Name and signature)

PART – B [See rule 54 (3)]

Composition Certificate

Ref: Notice No…………..                                                                            Date:

This is to certify that the offence under sub-section …… of section 54 in respect of which Notice No.   Dated:           was issued to Sh…………. (Applicant), the employer of ……………. (name and registration number of establishment) has been compounded on account of remission of full amount of Rs ……….. (Rupees                                   ) towards the composition of offences to the satisfaction of the said notice.

(Signature) Name and Designation of the Officer

Date: Place: To:

………………..(Employer/Establishment)

…………………(Name and registration number)

………………….(Address)

FORM-VII

(See clause (a) of sub rule (1) of rule 45) NOMINATION FORM

1. Name of person making nomination:

(In block letters):

2. Father’s/Spouse’s Name:

3. Date of Birth:

4. Sex:

5. Marital Status:

6. Address:

Permanent:

Temporary:

I hereby nominate the person(s)/cancel the nomination made by me previously and nominate  the person(s)

mentioned below to receive any amount due to me from the employer in the event of my death:-

1. Certified that I have no family and if I acquire a family hereafter, the above nomination shall be deemed as cancelled.

2. Certified that my father/mother is/are dependent upon me.

3. Strike out whichever is not applicable.

Signature or the thumb impression of the employee

CERTIFICATE BY EMPLOYER

Certified that the above declaration and nomination has been signed/thumb impressed before me by Shri/Smt/Ku

……………………………………………employed in my establishment after he/she has read the entry/entries or have been read over to him/her by me and got confirmed by him/her in either of the cases. Signature of the

employer or other authorised officer of the establishment and Designation Place: Date:

Name and Address of the Factory/Establishment and rubber stamp thereof

ACKNOWLEDGEMENT BY THE EMPLOYEE

Received the duplicate copy of nomination in Form-VIII filed by me and duly certified by the employer. Date:

Signature of the Employee

FORM VIII

(See sub rule (2) of Rule 49)

(A). FORM OF NOTICE TO THE RESPONDENT TO BE ISSUED BY THE AUTHORITY UNDER SUB-SECTION (5) OF SECTION 45

(Title of the application)

To

Name Address

Whereas                          (name of the applicant) has made the above said application tome under the Code on Wages, 2019, you are hereby summoned to appear before me in person  or  by  a  duly  authorized representative,  and  required  to  answer  all  material  questions relating to the application, or shall be, accompanied by some person duly authorized by you and able to answer such question on the………….Day of…….20….at………AM/PM, to answer the claim in application and as the day fixed for the appearance is appointed for the final disposal of the application, you must be prepared to produce on that day all the witnesses upon whose evidence and the documents upon which you intend to rely in support of your defense.

Take notice that in default of your appearance on the day mentioned here above, the application will be heard and disposed of in your absence.

Date………….                                                                     Signature of the authority with seal

(B). FORM OF NOTICE TO THE RESPONDENT TO BE ISSUED BY THE APPELLATE AUTHORITY UNDER SUB-SECTION (1) OF SECTION 49

(Title of the appeal)

To

Name Address

Take notice that an appeal (copy of which is enclosed) under section 49 of the Code on Wages, 2019 has been presented by                                                          (name of appellant) before this appellate authority, and that the                                     day of                20   has been fixed by this appellate authority for the hearing of the appeal.

If no appearance is made by you in person or by a duly authorized representative to act for you in this appeal, it will be heard and decided in your absence.

Date………….                                 Signature of the Appellate authority with seal

Total number of days worked

Signature of Register keeper*

*Note: Required in case register is maintained physically.

Appendix A

[See rules 22, 23, 27 and 28]

In this Appendix, the total amount of bonus equal to 8.33 per cent of the annual salary or wage payable to all the employees is assumed to be Rs. 1,04,167. Accordingly, the maximum bonus to which all the employees are entitled to be paid (twenty per cent of the annual salary or wage of all the employees) would be Rs. 2,50,000.

* Maximum.

+ The balance of Rs. 1,10,000 set on from year-2 lapses.

** Minimum

Appendix B COMPUTATION OF GROSS PROFITS

[See rule 24] Accounting year ending ………

Explanation.— In sub-item (b) of Item 3, “approved gratuity fund” has the same meaning assigned to it in clause (5) of section 2 of the Income Tax Act,1961.

* Where the profit subject to taxation is shown in the Profit and Loss account and the provision made for taxes on income is shown, the actual provision for taxes on income shall be deducted from the profit.

Foot-note:-

(1) If, and to the extent, charged to Profit and Loss Account.

(2) If, and to the extent, credited to Profit and Loss Account.

(3)  In the proportion of Indian Gross Profit (Item No. 7) to Total World Gross Profit (as per consolidated profit and loss

account adjusted as in Item No. 2 above only)]

Appendix C COMPUTATION OF GROSS PROFITS

[(See rule 25)] Accounting year ending……………

Explanation.— In sub-item (aa) of Item 3, “approved gratuity fund” has the same meaning assigned to it in clause (5) of section 2 of the Income Tax Act, 1961.

Foot-note:-

(1) If, and to the extent, charged to Profit and Loss Account.

(2) If, and to the extent, credited to Profit and Loss Account.

In the proportion of Indian Gross Profit (Item No. 7) to Total World Gross Profit (as per consolidated Profit

and Loss Account, adjusted as in Item No. 2 above only)

Appendix D

[See rule 26]

5.    Any

r

8.5 per cent of the capital invested in the establishment as evidenced from his books othe of accounts at the commencement of the accounting year:

employer not Provided that where such employer is a person to whom Chapter XXII-A of the income Tax Act applies , the annuity deposit payable under the provisions of that Chapter during the

fallin accounting year shall also be deducted:under   any Provided further that where such employer is a firm, an amount equal to 25 per cent of the

of          thegross profits derived by it from the establishment in respect of the accounting year after

aforesaid

categories

deducting depreciation in accordance with the provisions of clause (a) of section 34 by way of remuneration to all the partners taking part in the conduct of business of the establishment shall also be deducted, but where the partnership agreement, whether oral or written, provides for the payment of remuneration to any such partner, and –

(i) the total remuneration payable to all such partners is less than the said 25 per cent the amount payable, subject to a maximum of five lakh rupees to each such partner; or

(ii) the total remuneration payable to all such partners is higher than the said 25 percent , such percentage, or a sum calculated at the rate of five lakh rupees to each such partner, whichever is less , shall be deducted under this proviso:

Provided also that where such employer is an individual or a Hindu Undivided Family –

(i) an amount equal to 25 per cent of the gross profits derived by such employer from the establishment in respect of the accounting year after deducting depreciation in accordance with the provisions of clause (a) of section 34; or

(ii) five lakh rupees,

whichever is less by way of remuneration to such employer, shall also be deducted.

Explanation.— The expression “reserves” occurring in column (3) against Item Nos. 1(iii), 2(iii) and 3(ii) shall not include any amount set apart for the purpose of-

(i) payment of any direct tax which, according to the balance-sheet, would be payable;

(ii) meeting any depreciation admissible in accordance with the provisions of clause (a) of section 34;

(iii) payment of dividends which have been declared, but shall include,-

(a) any amount, over and above the amount referred to in clause-(i) of this Explanation, set apart as specific reserve for the purpose of payment of any direct tax; and

(b) any amount set apart for meeting any depreciation in excess of the amount admissible in accordance with the provisions of clause (a) of section 34.