Draft Code on Wages (Central) Rules, 2025

Background and statutory context

Following the enactment of the  Code on Wages 2019, draft Wage Code (Central) Rules, 2020 were earlier published to invite objections and suggestions under section 67 of the Code. Subsequently, all provisions of the Code on Wages, 2019 were brought into force through notifications issued in December 2020 and November 2025.

Provisions relating to the Central Advisory Board were separately notified earlier. In this context, the Central Government has now proposed a consolidated set of Central Rules to replace multiple earlier rules framed under repealed wage-related labour laws.

Repeal and substitution of earlier rules

The proposed Wage Code (Central) Rules, 2025 are intended to replace and supersede a large number of existing Central Rules framed under repealed enactments, including rules relating to:

• Payment of Wages
• Minimum Wages
• Bonus
• Equal Remuneration
• Advisory boards and committees
• Sector-specific wage rules (mines, railways, air transport services, defence deductions, and others)

These earlier rules stood repealed under section 69 of the Code on Wages, 2019, subject to savings for actions taken prior to repeal.

Invitation of objections and suggestions

The notification invites objections and suggestions from stakeholders within 45 days from the date copies of the Gazette are made available to the public. Submissions are to be sent to the specified officer in the Ministry of Labour and Employment. All representations received within the prescribed period are to be considered by the Central Government.

Chapter I – Preliminary provisions

The rules are titled Code on Wages (Central) Rules, 2025, extend to the whole of India, and are to come into force from the date of publication in the Official Gazette.

Detailed definitions are provided for key terms, including authority, appellate authority, committee, family, highly skilled, skilled, semi-skilled and unskilled occupations, registered trade union, geographical area, inspector-cum-facilitator, and others. Undefined terms take their meaning from the Code on Wages, 2019.

Chapter II – Minimum wages

The rules prescribe the methodology for fixation of minimum wages, including:

• A standard working-class family comprising the worker, spouse, and two children
• Calorie intake per consumption unit
• Annual clothing requirement
• Housing cost as a percentage of food and clothing expenditure
• Fuel, electricity, and miscellaneous expenses
• Education, medical, recreation, and contingency expenses

Guidelines are laid down for conversion of daily wages into hourly and monthly rates, rounding off principles, and treatment in five-day work weeks.

Criteria for fixation of minimum wages include geographical area, nature of employment, and skill classification. The Central Government is barred from fixing minimum wages for its own employees under these rules.

A technical committee is provided for advising on skill categorisation and classification of occupations into unskilled, semi-skilled, skilled, and highly skilled categories.

Revision of dearness allowance

The rules provide for periodic revision of variable dearness allowance, linked to changes in consumer price indices, to be undertaken twice annually.

Working hours and weekly rest

Provisions specify:

• Number of working hours constituting a normal working day
• Entitlement to weekly rest days
• Conditions for substituted rest days
• Treatment of rest day wages and overtime
• Rules for night shifts and continuity of work

The rules clarify computation of wages for rest days, substituted rest, and overtime, along with dispute resolution by designated labour authorities.

Chapter III – Floor wage

The rules prescribe the procedure for fixation and periodic revision of the floor wage by the Central Government after consultation with the Central Advisory Board and State Governments, generally at intervals not exceeding five years.

Chapter IV – Payment of wages

Detailed provisions govern:

• Situations where full wages for a normal working day may not be payable
• Recovery of authorised deductions
• Designation of authorities for adjudication
• Display of wage-related information at workplaces
• Procedures for imposing fines
• Employer obligations in cases of deductions for loss or damage
• Recovery of advances and other dues

Limits are placed on monthly deductions, and procedural safeguards such as notice, opportunity of hearing, and time limits are prescribed.

Chapter V – Payment of bonus

The rules lay down detailed mechanisms for:

• Set-on and set-off calculations across accounting years
• Computation of gross profits
• Deduction of prior charges
• Carry-forward of allocable surplus or deficiency

Schedules are prescribed for uniform calculation methods across establishments.

Chapter VI – Central Advisory Board

The rules set out:

• Composition of the Central Advisory Board
• Representation of employers, employees, independent members, women members, and State Governments
• Functions of the Board in advising on minimum wages and related matters
• Procedures for meetings, quorum, voting, records, and summoning witnesses
• Tenure of members and constitution of committees

Overall, the notification seeks to consolidate and standardise wage-related procedural rules under the Code on Wages, 2019, replacing fragmented rule-making under repealed labour laws and providing uniform mechanisms for wage fixation, payment, deductions, bonus computation, and advisory processes.

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 30th December, 2025

G.S.R. 936(E).—Whereas, subsequent to the enactment of the Code on Wages, 2019 (29 of 2019) (in short the said Code) by Parliament, the draft Code on Wages (Central) Rules, 2020 were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide Notification number G.S.R. 432(E), dated 7th July, 2020 inviting objections and suggestions as required under section 67 of the said Code;

And whereas, vide notification number S.O. 4604 (E), dated 18th December 2020 and S.O. 5322 (E), dated 21st November, 2025, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (ii), all the provisions of the said Code have been brought into force;

And whereas, in view of the provisions relating to constitution of Central Advisory Board were brought into force on 18th December, 2020, the Code on Wages (Central Advisory Board) Rules, 2021 were published separately on 1st March, 2021;

Now therefore, the following draft rules, which the Central Government proposes to make in exercise of the powers conferred by section 67 of the Code on Wages, 2019 (29 of 2019) read with section 24 of the General Clauses Act, 1897 (10 of 1897) and in supersession of the –

(i) The Payment of Wages (Procedure) Rules, 1937;

(ii) The Payment of Wages (Nomination) Rules, 2009;

(iii) The Minimum Wages (Central) Rules, 1950;

(iv) The Minimum Wages (Central Advisory Board) Rules, 2011;

(v) The Ease of Compliance to Maintain Register under various Labour Laws Rules, 2017 to the extent these rules are made in exercise of the powers conferred by section 13 of the Equal Remuneration Act, 1976 (25 of 1976), section 29 and section 30 of the Minimum Wages Act, 1948 (11 of 1948) and section 26 of the Payment of Wages Act, 1936 (4 of 1936) and applicable accordingly;

(vi) The Payment of Bonus Rules, 1975;

(vii) The Equal Remuneration Rules, 1976; and

(viii) The Central Advisory Committee on Equal Remuneration Rules, 1991;

(x) The Payment of Wages (Procedure) Application to Scheduled employments Rules, 1962;

(x) The Payment of Wages (Mines) Rules, 1956;

(xi) The Payment of Undisbursed Wages (Mines) Rules, 1989;

(xii) The Payment of Wages (Air Transport Services) Rules, 1968;

(xiii) The Payment of Undisbursed Wages (Air Transport Services) Rules, 1988;

(xiv) The Payment of Wages (Railways) Rules, 1938;

(xv) The Payment of Wages (Deductions for National Defence Fund and Defence Savings Scheme) Rules, 1972;

(xvi) The Payment of Wages (Manner of Recovery of excess Deductions) Rules, 1966;

(xvii) The Code on Wages (Central Advisory Board) Rules, 2021;and

(xviii) The Code on Wages (Central Advisory Board) Amendment Rules, 2025;

made by the Central Government in exercise of the powers conferred by the Payment of Wages Act, 1936 (4 of 1936), the Minimum Wages Act, 1948 (11 of 1948), the Payment of Bonus Act, 1965 (21 of 1965) and the Equal Remuneration Act, 1976 (25 of 1976), as the case may be, which are repealed by section 69 of the said Code on Wages, 2019 (29 of 2019), except as respects things done or omitted to be done before such supersession, are hereby notified, as required by sub­section (1) of said section 67, for information of all persons likely to be affected thereby and the notice is hereby given that the said draft notification will be taken into consideration after the expiry of a period of forty-five days from the date on which the copies of the Official Gazette in which this notification is published, are made available to the public;

Objections and suggestions, if any, may be addressed to Shri Nitesh Bhasin, Under Secretary (wagecell@nic.in), Government of India, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001;

Objections and suggestions, which may be received from any person with respect to the said draft notification before expiry of the period specified above, will be considered by the Central Government.

DRAFT RULES

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.-(1) These rules may be called the Code on Wages (Central) Rules, 2025.

(2) They extend to the whole of India.

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

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

a. “authority” means the authority appointed by the Central Government under sub­section (1) of section45;

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

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

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

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

f. “day” means a period of 24 hours beginning at mid-night;

(g)”family” means all or any of the following relatives of an employee namely:—

(a) a spouse;

(b) a minor legitimate or adopted child dependent upon the employee ;

(c) a child who is wholly dependent on the earnings of the employee, and who is—

(i) receiving education, till he attains the age of twenty-one years; and

(ii) an unmarried daughter;

(d) a child who is infirm by reason of any physical or mental abnormality or injury and is wholly dependent on the earnings of the employee, so long as the infirmity continues;

(e) dependent parents (including father-in-law and mother-in-law of a woman employee), whose income from all sources does not exceed such income as may be specified by the Central Government from time to time;

(h) “Form” means a form appended to these rules;

(i) “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 his judgment or decision involved in the execution of such occupation;

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

(k) ”Geographical Area” means, the areas notified as such by the Central Government from time to time.

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

(m) “Schedule” means a Schedule annexed to these rules;

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

(o) “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;

(p) “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;

(q) “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 and not defined but defined in the Code shall have the meanings respectively assigned to them under the Code.

CHAPTER II

3. Minimum WagesManner of calculating the minimum rate of wages.–(1) For the purposes of sub-section (5) of section 6, the minimum rate of wages shall be fixed on the day basis keeping in view the following criteria, namely:-

(i) the standard working class family which includes a spouse and two children apart from the earning employee; an equivalent of three adult consumption units;

(ii) a net intake of 2700 calories per day per consumption unit;

(iii) 66 meters cloth per year per standard working class family;

(iv) housing rent expenditure to constitute 10 per cent of food and clothing expenditure;

(v) fuel, electricity and other miscellaneous items of expenditure to constitute 20 percent of minimum wage; and

(vi) expenditure for children education, medical requirement, recreation and expenditure on contingencies to constitute 25 percent of minimum wage;

(2)When the rate of wages for a day is fixed, then, 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. In case of a five day working week, the hourly rate of minimum wages so calculated shall be used to derive the minimum wages for the day.

4. Norms for fixation of minimum rate of wages.-(1) While fixing the minimum rates of wages under section 6, the Central Government shall take into account the following:

(i) geographical area,

(ii) experience in the area of employment, and

(iii) level of skill required for working under the categories of unskilled, semi­skilled, skilled and highly skilled.

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

(2) The Central Government shall constitute a technical committee for the purpose of advising the Central Government in respect of skill categorization of occupation, arduousness of work, hazardous occupations or processes and underground work and like other categorization, which shall consist of the following members, namely:-

i. Director General of Employment, Ministry of Labour and Employment, Government of India- Chairperson;

ii. Joint Secretary in-charge of Wage Division in the Ministry of Labour and Employment, Government of India, – Member;

iii. Chief Labour Commissioner (Central) – Member;

iv. Joint Secretary in-charge of skill development in the Ministry of Skill Development and Entrepreneurship, Government of India, – Member;

v. Two technical experts in wage determination as nominated by the Central Government -Members;

vi. Two representatives each of employers and employees who are experts in the area of skill development; and – Members

(vii) Director/ Deputy Secretary in the Wage Division in the Ministry of Labour and Employment, Government of India, – Member Secretary.

(3) The Central Government may, on the advice of the technical committee referred to in sub-rule (2), by notification update Schedule E in respect of categorization of occupations into unskilled, semi-skilled, skilled and highly skilled by modifying, adding, or deleting any entry in respect of occupations specified in Schedule E.

(4) The technical committee referred in sub-rule (2) shall while advising the Central Government under sub-rule (3) take into account, to the possible extent, the national classification of occupation or national skills qualification framework or other similar framework for the time being formulated to identify occupations.

5. 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 before1st 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.

6. Number of hours of work which shall constitute a normal working day. —(1) The number of hours of work which shall constitute a normal working day inclusive of one or more specified intervals shall be as per general or special order, issued from time to time.

(2) The period of work of an employee shall be so arranged that inclusive of the intervals of rest, the spread over shall not exceed the number of hours as per general or special order, issued from time to time.

7. Weekly day of rest.— (1) Subject to the provisions of this rule, an employee shall be allowed rest of one day or more than one day as the case may be, every week (hereinafter referred to as “the rest days”) which in case of six day week shall ordinarily be Sunday and in case less of than six day week shall include Saturday and Sunday, but the employer may fix any other days of the week as the rest days for any employee or class of employees.

Provided that in a six-day 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 that an employee shall be entitled for the rest days under this sub-rule if he has worked under the same employer in case of six-day week for a continuous period of not less than

six days and in case of less than six day working week for a continuous period of the stipulated number of working days as the case may be.

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

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

shall be deemed to be days on which the employee has worked.

(2) Any such employee shall not be required or allowed to work on the rest day unless he has or will have a substituted rest day for a whole 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 will result in the employee working for more than ten days consecutively without a rest day for a whole day.

(3) Where in accordance with the foregoing provisions of this rule, any employee works on a rest day and has been given a substituted rest day on any one of the working days before or after the rest day, the rest day shall, for the purpose 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 next preceding day; and 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 he worked, at the overtime rate and wages for the substituted rest day at the rate applicable to the next preceding day:

Provided that in case of six-day 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, he shall be paid, only for the rest day on which he worked, an amount equal to the wages payable to him at the overtime rate;

and, if 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 territorial jurisdiction may, on application made to him 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, he 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 next preceding day.

Explanation.-In this sub-rule ‘next preceding 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 next preceding 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 aforesaid.

Explanation.-For the purposes of this rule, ‘week’ shall mean a period of seven days beginning at midnight on Saturday night.

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

a. a rest day for the whole day for the purposes of rule 7 shall, in this case means a period of twenty-four consecutive hours beginning from the time when his shift ends; and

b. 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.

9. The extent and conditions for the purposes of sub-section (2) of section 13.-In case of employees-

a. engaged in any emergency which could not have been foreseen or prevented;

b. engaged in work of the nature of preparatory or complementary work which must necessarily be carried on outside the limits laid down for the general working in the employment concerned;

c. whose employment is essentially intermittent;

d. engaged in any work which for technical reasons has to be completed before the duty is over; and

e. engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces,

the number of hours of work which shall constitute a normal working day inclusive of one or more specified intervals and the spread over of the hours of work of the employee may exceed the number of hours as specified by general or special order, issued from time to time, under Rule 6.

10. 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

11. Manner of fixing floor wage.—(1) The Central Advisory Board referred to in sub-section

(1) of section 42 (hereinafter referred to as the Board) shall be consulted by the Central Government for the purpose of fixing the floor wage under sub-section (1) of section 9, 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 of the standard working class family as specified in clause (i) of sub-rule (1) of rule 3.

(2) The advice of the Board obtained in consultation under sub-rule (1) shall be circulated by the Central Government to all State Governments for consultation with them.

(3) The advice of the Board referred to in sub-rule (2) and the views of the State Governments received in consultation referred to in that sub-rule shall 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.

CHAPTER IV
Payment of Wages

12. Circumstances under clause (ii) of the proviso to section 10.—An employee shall not be entitled to receive wages for a full normal working day under section 10, if he is not entitled to receive such wage under any other labour law for the time being in force.

13. Recovery under sub-section (4) of section 18.-Where the total deductions authorized 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 or wage periods, as the case may be, in such installments so that the recovery in any month shall not exceed the fifty per cent. of the wages of the employee in that month.

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

15. The manner of exhibiting the notice under sub-section (2) of section 19.- 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 places in the premises of the work place in which the employment is carried on, so that every concerned employee would be able easily to read the contents of the notice and a copy of the notice shall be sent electronically or by registered post to the Inspector-cum-Facilitator having jurisdiction.

16. The procedure under sub-section (3) of section 19.-The employer shall give an intimation electronically or in writing specifying therein the detailed particulars for obtaining the approval of the imposition of fine to the Deputy Chief Labour Commissioner (Central) referred to in rule 14 who shall, before granting or refusing the approval, give opportunity of being heard to the employee and the employer concerned and shall dispose of the matter within Thirty days from the date of receiving such intimation, failing which it shall be deemed to be approved.

17. Intimation of deduction.-(1)Where an employer makes any deduction in pursuance of the proviso to sub-section (2) of section 20, he shall make intimation electronically or by registered post of such deduction to the Inspector-cum-Facilitator having jurisdiction within Ten days from the date of such deduction explaining therein the reason of such deduction.

(2) The Inspector-cum-Facilitator shall, after receiving intimation under sub-rule (1), examine such intimation and if he finds that the explanation given therein is in contravention of any provision of the Code or the rules made there under, he shall initiate appropriate action under the Code against the employer within thirty days from the date of receipt of such intimation.

18. Procedure for deduction under sub-section (2) of section 21.-Any employer desiring to make deduction for damages or loss under sub-section (1) of section 21 from the wages of an employee shall,-

i. explain to the employee in writing the value of damage or loss of goods expressly entrusted to the employee for custody or for loss of money for which he is required to account and how such damages or loss is directly attributable to the neglect or default of the employee; and

ii. give the employee an opportunity to submit any explanation and thereafter, deduction for any damages or loss, if made, shall be intimated to the employee within fifteen days from the date of such deduction.

19. Conditions regarding recovery of advance under section 23.-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 installments determined by the employer, so as any or all installments 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 under section 24.-Deductions for recovery of loans granted for house building or other purposes approved by the Central Government 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. Calculation of set on or set off for the 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 Schedule 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.

22. Calculation of set on or set off for the 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 Schedule 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.

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

24. Computation of gross profits under clause (b) of section 32.-The gross profits derived by an employer from an establishment in respect of the accounting year in a case other than banking company, be calculated in the manner specified in Schedule C.

25. Deduction of further sums under clause (c) of section 34.-The further sums as are specified in respect of the employer in Schedule D shall be deducted from the gross profit as prior charges under clause (c) of section 34.

26. Manner of carrying forward 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 up to and inclusive of the fourth accounting year to be utilised for the purpose of payment of bonus in such manner as illustrated in Schedule A.

27. Manner of carrying forward 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 26 which could be utilized 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 up to and inclusive of the fourth accounting year in such manner illustrated in Schedule A.

CHAPTER VI
Central Advisory Board
A. Procedure of Central Advisory Board under sub-section (10) of section 42

28. Constitution of the Board.-(1) The Board shall consist of the persons to be nominated by the Central Government representing employers and employees as specified in clauses (a) and (b) of sub-section (1) of section 42 and the independent persons and representatives of the State Governments as specified in clauses (c) and (d) of that sub-section.

(2) The persons representing employers as referred to in clause (a) of sub-section (1) of section 42 shall be twelve and the persons representing employees referred to in clause (b) of that sub­section shall also be twelve.

(3) The independent persons specified in clause (c) of sub-section (1) of section 42 to be nominated by the Central Government shall consist of the following, namely:-

(i) the Chairperson;

(ii) two Members of Parliament;

(iii) four members each of whom, shall be a professional in the field of wages and labour related issues;

(iv) one member who is or has been a presiding officer of an Industrial Tribunal constituted by the Central Government under section 44 of the Industrial Relations Code, 2020 (35 of 2020); and

(v) two members, each of whom shall be the Chairperson of such State Advisory Board referred to in sub-section (4) of section 42, to the extent possible, has been taken in rotation from the States.

(4) The five representatives of the State Governments referred to in clause (d) of section 42 shall each be the Principal Secretary or Secretary or Commissioner of the State Labour Department of such States as the Central Government may determine from time to time on rotation basis.

(5) The Central Government shall, while nominating the members of the Board, take into account that the independent members under sub-rule (2) shall not exceed one-third of the total members of the Board and one third of the members of the Board shall be women.

29. Additional functions of the Board.- In addition to the functions specified in sub-section (3) of section 42, the Board on reference by the Central Government advise that Government on the issue relating to the fixation of minimum wages in respect of-

(i) working journalists as defined in clause (zzm) of section 2 of the occupational safety, health and working conditions Code, 2020 (37 of 2020); and

(ii) sales promotion employees as defined in clause (zze) of section 2 of the occupational safety, health and working conditions Code, 2020 (37 of 2020).

30. Meeting of the Board. – The Chairperson may, subject to the provisions of rule 32, call a meeting of the Board at any time he thinks 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 registered post and 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 only 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 at any meeting, 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.

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 an 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 all the members electronically or by a Registered post.

34. Disposal of business of the Board.- All business of the Board shall be considered at a 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 shall be held in such manner as the Chairperson may decide.

36. Proceedings of the 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 by him in accordance with the scale for the time being in force for payment of such allowance to witnesses appearing before a civil court.

38. Appointment of the committees.- The Central Government may constitute as many committee under clause (a) of sub-section (1) of section 8 as it considers necessary for the purposes specified in that clause.

B. Terms of office of members of the Board under sub-section (11) of section 42

39. Term of office of members of the Board.- (1)The term of office of the Chairperson or a member, as the case may be, shall be normally two years commencing from the date of his appointment or nomination, as the case may be, under sub-section (1) of section 42:

Provided that such Chairperson or a member shall, notwithstanding the expiry of the said period of two years, continue to hold office until his successor is appointed or nominated, as the case may be.

(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 he is nominated.

(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 sub-rules (1), (2), and (3), the members of the Board shall hold office during the pleasure of the Central Government.

40. Travelling allowance.-The Chairman and every member of the Board, shall be entitled to draw travelling and halting allowance for any journey performed by him in connection with his duties at the rates and subject to the conditions applicable to a Group A officer of the Central Government.

41. Officers and Staff.- The Central Government may provide a Secretary not below the rank of Joint Secretary to the Government of India, other officers and staff to the Board, as it may think necessary for the functioning of the Board.

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

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

(2) A 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 membership of the Board, the Chairperson shall submit a report to the Central Government immediately and the Central Government shall, then, take steps to fill the vacancy in accordance with the provisions of the Code.

44. 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.

45. 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 disqualification has been incurred under sub-rule (1), the decision of the Central Government thereon shall be final.

CHAPTER VII
PAYMENT OF DUES, CLAIMS, etc.

46. Payment under clause (a) of sub-section (1) of section 44.-(1)(a) Every employee shall make a declaration in Form-VII, nominating a person conferring the right to receive the amount that may stand in his credit at the event of his death before that amount standing to his credit 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 his family;

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

Provided further that a fresh nomination towards his spouse shall be made by the employee on his 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 his family, to be the guardian of the minor nominee or where there is no major person in the family, he may at his discretion, appoint any other person to be a guardian of the minor nominee.

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

(2) Where any amount payable to an employee under the Code is due after his death or on account of his whereabouts not being known, 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 his identity within two months of the date on which the amount was so deposited with him.

47. Deposit of the undisbursed dues under clause (b) of sub-section (1) of section 44.­(1) Where any amount payable to an employee under this Code remains undisbursed because either no nomination has been made by such employee or for any other reason, such amounts could not be paid to the nominee of employee until the expiry of six months from the date the amount had become payable, all such amounts shall be deposited by the employer 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 referred to in sub-rule (1) shall be deposited by the employer with the Deputy Chief Labour Commissioner (Central) having jurisdiction 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).

48. Manner of dealing with the undisbursed dues under clause (b) of sub-section (1) of section 44. —(1) The amount referred to in sub rule (1) of rule 29 (hereinafter in this rule referred to as the amount) deposited with the Deputy Chief Labour Commissioner (Central) having jurisdiction shall remain with him and be invested in the Central or State Government Securities or deposited as a fixed deposit in a scheduled bank.

(2) The Deputy Chief Labour Commissioner (Central) having jurisdiction will exhibit, as soon as maybe possible, a notice containing such particulars regarding the amount 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.

(3) Subject to the provision of sub-rule (4), the Deputy Chief Labour Commissioner (Central) having jurisdiction 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, the amount to be paid.

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

CHAPTER VIII
FORMS, REGISTERS AND WAGE SLIP

49. The form of a single application. – (1)A single application, may be filed under sub-section

(5) of section 45 in Form-II manually or electronically along with documents specified in the said Form.

(2) Where an application under sub-section (5) of section 45 is entertained, the authority shall serve upon the employer electronically or by registered post a notice in Form VIII to appear before him 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) If the employer or his representative fails to appear on the specified date, the authority may hear and determine the application ex-parte.

(4) If the applicant or his representative fails to appear on the specified date without any reasonable cause shown in advance, the authority may dismiss the application.

50. 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 registered 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 registered post a notice in Form VIII to appear before him on the date specified in the notice and shall inform the appellant of the date so specified.

(3) The appellate authority shall after hearing the appellant and the respondent shall, by order, decide the appeal.

51.Form of register, etc.-(1) Every 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 thereof 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 appended to these rules, and the authority referred to in said sub-section(8) shall be the Deputy Chief Labour Commissioner (Central) having jurisdiction.

(3) All deductions and all 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 appended to these rules.

(4) Registers required to be 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 under sub-section (1) of section 53.-(1) When 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 authorized 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 evidences as produced before him 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, he shall explain the offender the offence complained against him and if the offender pleads guilty, the officer shall impose penalty on him in accordance with the provisions of the Code and when 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 . The officer shall record the statement of the witnesses on oath and in cross examination in writing and take the documentary evidence on record.

(3) The officer shall, after the complainant’s evidence is complete, provide 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.

(4) The officer shall after hearing the parties and considering the evidences both oral and documentary decide the complaint in accordance with the provisions of the Code.

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

(2) The Gazette Officer referred to in sub-rule (1) shall on receipt of such application, satisfy himself 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, compromise 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) Where the offence has been compromised under sub-rule (2) after the institution of the prosecution, then, the officer shall send a copy of such order made by him for intimation to the officer referred to in sub-section (1) of section 53 for needful action under sub-section (6) of section 56.

CHAPTER IX
MISCELLANEOUS

55. Payment of Wages.-Where the employees are employed in an establishment through contractor, then, 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 to him or it, 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).

56. Technical Committee for working Journalist.-The Central Government may, for the purpose of fixing minimum wages under the code for the working journalist as defined in clause (zzm) of section 2 of the occupational safety, health and working conditions Code, 2020 (37 of 2020) appoint a technical advisory committee under clause (a) of sub-section (1) of section 8 to recommend the Central Government in respect of such fixation.

57. Responsibility for payment of minimum bonus.- Where in an establishment, the employees are employed through contractor and the contractor fails to pay minimum bonus to them under section 26, then, 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 such minimum bonus to the employees.

58. Annual Return.- The return under these rules shall be filed electronically by every employer of an establishment to which the Code applies in the relevant columns of the Form specified for such purpose in the rules made under the Occupational, Safety Health and Working Conditions Code, 2020 (37 of 2020). A copy of such return shall also be forwarded electronically to the Labour Bureau, Ministry of Labour and Employment, Government of India.

[F. No. P-11023/03/2025-WC]

ALOK MISHRA, Jt. Secy.