TaxTMI 
TaxTMI 
Code on Wages (Central) Rules, 2026
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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) Fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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; ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er (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 favourable terms. Explanation.- For the purposes of this rule,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he 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 exhib....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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 bo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent. 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 produc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion 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 i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt to the person nominated by the employee after ascertaining the identity of 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 Chi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....epresentative 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 manua....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Nomination form) 21. Details of Family 22. EPS/NPS 23. ESIC IP No. 24. AADHAAR NO. 25. Bank A/c Number 26. Bank 27. Branch (IFSC) 28. Present Address 29. Permanent Address 30. Service Book No. 31. Date of Exit 32. Reason for Exit 33. Mark of Identification 34. Photo 35. Specimen Signature/Thumb Impression 36. Remarks * (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 ................................................................................ ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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. 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 A.B.C Address...................................................................................................APPELLANT Vs. C.D.E. 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, ea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nbsp; Date of Payment Receipt by employee/Bank transaction ID Nature of acts and omissions for which fine imposed with date Amount of fine imposed Damage or loss caused to the employer by neglect or default of the employee Signature of Employer/Employer Representative* (28) (29) (30) (31) (32) (33) FORM V (See rule 52) WAGE SLIP Date of issue Name of the Establishment Address Period 1. Name of employee 2. Father's/Mother's/Spouse Name 3. Designation 4. UAN 5. Bank Account Number 6. Wage period 7. Rate of wages payable a. Basic b. DA c. Allowances 8. Total attendance/unit of work done 9. Overtime wages 10. Gross wages payable 11. Total deductions....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ORM-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:- Name of nominee/nominees Address Nominee's relationship with the employee Date of Birth Total amount of share of accumulations in credit to be paid to each nominee If the nominee is minor, name, relationship, and address of the guardian who may receive the amount during the minority of nominee (1) (2) (3) (4) (5) (6) 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 Form IX (See clause (iii) of sub rule (1) of Rule 51) ATTENDANCE REGISTER CUM MUSTER ROLL Name of the Establishment Name of the Employer Name of the Owner Registration Number of the establishment (Labour Identification Number (LIN) shall be the Registration Number of the Establishment) Sl. No. Employee Code Name Designation Shift Place of work/Section/Department (1) (2) (3) (4) (5) (6) Date and Time of attendance (7) Date 1 2 3 4 5 6 7 8 9 10 11 Time In Out In Out In Out In Out In Out In Out In Out In Out In Out In Out In Out ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d forward (1) (2) (3) (4) (5) (6) Rs. Rs. Rs. Rs. Of (year) 1. 1,04,167 1,04,167** Nil Nil 2. 6,35,000 2,50,000* Set on 2,50,000* Set on 2,50,000* (2) 3. 2,20,000 2,50,000* (inclusive of 30,000 from year-2) Nil Set on 2,20,000 (2) 4. 3,75,000 2,50,000* Set on 1,25,000 Set on 2,20,000 1,25,000 (2) (4) 5. 1,40,000 2,50,000* (inclusive of 1,10,000 from year-2) Nil Set on 1,10,000 1,25,000 (2) (4) 6. 3,10,000 2,50,000* Set on 60,000 Set on Nil + 1,25,000 60,000 (2) (4) (6) 7. 1,00,000 2,50,000* (inclusive of 1,25,000 from year-4 and 25,000 from year-6) Nil Set on 35,000 (6) 8. Nil (due to loss) 1,04,167**(inclusive of 35,000 from year-6) Set off 69,167 Set off 69,167 (8) 9. 10,000 1,04,167** Set off 94,167 Set off 69,167 94,167 (8) (9) 10. 2,15,000 1,04,167** (after setting off 69,167 from year-8 and 41,666 from year-9) Nil Set off 52,501 (9) * ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l profits (including profits on the sale of capital assets on such depreciation has not been allowed for income-tax); (ii) profits of, and receipts relating to, any business situated outside India; (iii) income of foreign banking companies from investment outside India. Net total of Item No. 4....... Rs............ 5. Total of Item Nos.1, 2, 3 and 4... Rs............ 6. Deduct : (a) Capital receipts and capital profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax). (b) Profits of, and receipts relating to any business situated outside India. (c) Income of foreign banking companies from investments outside India. (d) Expenditure or losses (if any) debited directly to published or disclosed reserves, other than - (i) capital expenditure and capital losses (other than losses on sale of capital assets on which depreciation has not been allowed for income-tax); (ii) losses of any business situated outside India. (e) In the case of foreign ban....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent allowance reserve. (e) Any other reserves Total of Item No. 2........ Rs............ See foot -note (1) See foot -note (1) 3. Add back also : (a) Bonus paid to employees in respect of previous accounting years. (aa) The amount debited in respect of gratuity paid or payable to employees in excess of the aggregate of- (i) the amount, if any, paid to, or provided for payment to, an approved gratuity fund; and (ii) the amount actually paid to employees on their retirement or on termination of their employment for any reason. (b) Donations in excess of the amount admissible for income-tax. (c) Any annuity due, or commuted value of any annuity paid, under the provisions of section 280D of the Income Tax Act during the accounting year. (d) Capital expenditure (other than capital expenditure on scientific research which is allowed as a deduction under any law for the time being in force relating to direct taxes) and capital losses (other than losses on sale of capital assets on which depreciation has been a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re reserved for such purposes. Total of Item No. 6 See foot -note (2) See foot -note (2) See foot -note (2) See foot -note (3) See foot -note (2) 7. Gross Profits for purposes of bonus (Item No. 5 minus Item No. 6) Rs............ 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] Item No. Category of employer Further sums to be deducted (1) (2) (3) 1. Company, other than a banking company. (i) The dividends payable on its preference share capital for the accounting year calculated at the actual rate at which such dividends are payable; (ii) 8.5 percent of its paid up equity share capital as at the comm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ia bear to its total world working funds; (iv) any sum which, in respect of the accounting year, is deposited by it with the Reserve Bank of India under sub-clause (ii) of clause (b) of sub-section (2) of section 11 of the Banking Regulation Act, 1949 (10 of 1949), not exceeding the amount required under the aforesaid provision to be so deposited.] 3. Corporation (i) 8.5 per cent of its paid up capital as at the commencement of the accounting year; (ii) 6 per cent of its reserves, if any, shown in its balance sheet as at the commencement of the accounting year, including any profits carried forward from the previous accounting year. 4. Co-operative society (i) 8.5 per cent of the capital invested by such society in its establishment as evidenced from its books of accounts at the commencement of the accounting year; (ii) such sums as has been carried forward in respect of the accounting year to a reserve fund under any law relating to co-operative societies for the time being in force. 5. Any other employer not falling under any of the aforesaid categories 8.5 per cent of the capital invested in the establishment as evidenced from his books ....