No. 29 of 2019 · Assented 8 August 2019
The Code on Wages, 2019
Minimum wages, the floor wage, timely payment of wages, deductions, bonus and equal pay.
69sections
9chapters
29gazette pages
In force since 21 November 2025
Chapters
- IPreliminaryThis chapter says where the Code applies, defines the terms used throughout it, and bans gender discrimination in pay and in recruitment for the same or similar work. Its definition of "wages", including the rule that excluded payments above one-half of total remuneration (or another percentage the Central Government notifies) are added back, decides how much of a pay packet counts as wages under the Code.§1–410 minAccounting year starts: 1 AprilCap on excluded pay items before the excess counts as wages: 50% of total remuneration (or as notified by the Central Government)
- IIMinimum WagesThis chapter bars any employer from paying any employee less than the minimum rate of wages notified by the government. It sets out how those rates are fixed and revised, the Central floor wage that no rate can go below, and how pay works for short days, mixed work, piece work, weekly rest and overtime.§5–148 minOvertime rate: At least 2× normal rateNotice for draft wage proposals: At least 2 months
- IIIPayment of WagesThis chapter sets how and when wages must be paid: the mode of payment, the longest allowed wage period, and payday deadlines, including when an employee leaves. It also lists the only deductions an employer may make from wages, caps total deductions at 50% and fines at 3% of wages, and lays down conditions for deductions for absence, damage, housing, advances and loans.§15–2510 minLongest wage period: 1 monthMonthly wages due: By the end of the 7th of next month
- IVPayment of BonusThis chapter sets out who gets a statutory bonus, how much, and how it is worked out from the employer's profits. It guarantees a minimum bonus of 8.33% of wages (or ₹100, if higher) whether or not there is any allocable surplus, with relief for new establishments in their early years, caps bonus at 20% of wages, and sets an eight-month deadline for paying it into the employee's bank account. It covers establishments with 20 or more people and employees earning within the wage ceiling the government notifies.§26–4115 minMinimum bonus: 8⅓% (8.33%) of wages or ₹100, whichever is higherMaximum bonus: 20% of wages
- VAdvisory BoardThis chapter sets up a Central Advisory Board and a State Advisory Board in every state. They advise the government on fixing and revising minimum wages, on job opportunities for women, and on any other matter under the Code. Employers and workers sit on these boards in equal numbers, so both sides have a voice in that advice.§423 minWomen members on every board and committee: One-thirdMaximum share of independent members: One-third
- VIPayment of Dues, Claims and AuditThis chapter says who must pay wages, bonus and other dues under the Code, and what happens to the dues of a worker who dies or cannot be traced. It sets up the claims process: who can file a claim, the three-year window, compensation of up to ten times the claim, recovery as arrears of land revenue, and appeal. It also covers bonus disputes, how audited accounts are used in claims and bonus proceedings, and the register, notice-board and wage-slip duties of employers, with a small exemption for agriculture and domestic employers.§43–509 minMaximum compensation on a claim: Up to 10 times the claimTime to file a claim: 3 years (later if sufficient cause shown)
- VIIInspector-cum-FacilitatorThis chapter creates the Inspector-cum-Facilitator, the government officer who can both advise employers and workers on following the Wages Code and inspect establishments to check they do. It covers how these officers are appointed, how inspections can be run online or picked at random once the government notifies it, and what an inspector can ask for on a visit. It matters because anyone required to produce documents or give information is treated as legally bound to do so under sections 175 and 176 of the Indian Penal Code, so refusing can be an offence.§512 min
- VIIIOffences and PenaltiesThis chapter sets the punishments for breaking the Code on Wages: fines for underpaying wages, for other breaches and for poor record-keeping, with jail possible only for repeat offenders. It also says who can file a complaint, when the people running a company or firm are personally liable, and how an offence can be settled by paying a fee instead of facing a full prosecution.§52–566 minMaximum fine for underpaying wages (first offence): ₹50,000Repeat underpayment within 5 years: Up to 3 months' jail and/or ₹1 lakh fine
- IXMiscellaneousThis chapter holds the general rules that sit behind the rest of the Code. It puts the burden of proving payment of wages and bonus on the employer, voids any agreement to the extent an employee gives up dues under it, lets the Code override conflicting laws and contracts, and bars court suits for wage and bonus sums that are claimed, decided or recoverable under the Code. It also gives governments their rule-making powers and repeals the four old wage laws, while keeping notifications and orders made under them alive, so far as they do not conflict with the Code, until they are repealed.§57–699 minOld wage laws repealed: 4Window to issue difficulty-removal orders: 3 years from commencement