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Code on Wages Law Manual
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CONTENTS
u Table showing sections of Code on Wages, 2019 & corresponding provisions of Repealed Laws I-7
u Table showing sections of Equal Remuneration Act, 1976 & corresponding provisions of Code on Wages, 2019 I-15
u Table showing sections of Minimum Wages Act, 1948 & corresponding provisions of Code on Wages, 2019 I-17
u Table showing sections of Payment of Bonus Act, 1965 & corresponding provisions of Code on Wages, 2019 I-20
u Table showing sections of Payment of Wages Act, 1936 & corresponding provisions of Code on Wages, 2019 I-24
u Comparative Study of Code on Wages, 2019 & Equal Remuneration Act, 1976/Minimum Wages Act, 1948/ Payment of Wages Act, 1936/Payment of Bonus Act, 1965 (Repealed Acts) I-27
DI VI SI ON T HREE NOTIFICATIONS
CODE ON WAGES, 2019*
[29 OF 2019]
An Act to amend and consolidate the laws relating to wages and bonus and matters connected therewith or incidental thereto. BE i t e nact e d by Parli a me nt i n t he Se ve nti et h Ye ar of t he Re p ubli c of I ndi a as f oll o ws: —
CHAPTER I
PRELIMINARY
Short title, extent and commencement.
1 1 . ( 1) Thi s Act may be c all e d t he Co de o n Wages, 2019.
( 2) It e xt e nds t o t he whol e of I ndi a.
( 3) It s hall c o me i nt o f or ce o n s uc h dat e as t he Ce nt r al Gover n me nt may, by noti ficati oni nt he Of fici al Gaz ett e appoi nt; a nd di ff er e nt dat es may be appoi nt e d f or di ff er e nt pr ovi si o ns of t hi s Co de a nd a ny r ef er e nce i n a ny s uc h pr ovi si o n t o t he c o mme nce me nt of t hi s Co de s hall be c o nst r ue d as a r ef er e nce t o t he c o m i ng i nt o f or ce of t hat pr ovi si o n.
Corresponding Provision : Secti on 1 of Pay me nt of Bonus Act, 1965/ Secti on 1 of M i ni mu m Wages Act, 1948/ Secti on 1 of Pay me nt of Wages Act, 1936/ Secti on 1 of Eq ual Re muner ati on Act, 1976
COMMENTS
SECTION NOTES
1.1 Provisions of Section 1 in a Nutshell
u Secti on 1 of t he Code on Wages, 2019 ( her ei naft er r ef err e d as “t he Code”) pr ovi des f or:
n Short ti tl e,
n Ext e nt i.e. t erri t ori al ext e nt,
n Co mme nce me nt, i.e., dat e of c o m i ng i nt o f or ce of pr ovi si ons of t he Code.
Secti on 1 of t he Code pr ovi des as under:
u
n The s hort ti tl e of t he Code s hall be “ Code on Wages, 2019 [Para 1.2]
n The Code ext e nds t o t he whol e of I ndi a. [Para 1.3 ]
* Dat e d 8- 8- 2019
1. Enf or ce d w i t h eff ect f r o m 21-11-2025 . [See Noti ficati on No. S . O . 5322( E), dat e d 21- 11- 2025. ] See al s o Noti ficati on No S O 4604( E), dat e d 18- 12- 2020 [ pert ai ni ng t o s ecti ons 42, 67 a nd 69] ( see Notifications ).
n The Code s hall c o me i nt o f or ce on s uc h dat e as t he Ce nt r al Gover n me nt noti fi es i n t he Offi ci al Gaz ett e [Para 1.4 ]
1.2 Short title of the enactment : Code on Wages, 2019
u
u
The s hort ti tl e of t he Code s hall be “ Code on Wages, 2019”
The pr ea mbl e of t he Code des cri bes Code as “ a n Act t o a me nd a nd c ons oli dat e t he l a ws r el ati ng t o wages a nd bonus a nd matt ers c onnect e d a nd i nci de nt al t her e w i t h” . The Code, 2019 s hall r e peal f r o m 21-11-2025 t he f oll o w i ng f o ur l a bo ur e nact me nt s r el ati ng t o wages, na mel y:
n t he Pay me nt of Wages Act, 1936 whi c h deal t w i t h ti me-li m i t f or pay me nt of wages, mode of pay me nt of wages a nd a ut hori s e d de ducti ons f r o m wages by e mpl oyer;
n
t he M i ni mu m Wages Act, 1948 whi c h pr es cri be d m i ni mu m wages ;
n t he Pay me nt of Bonus Act, 1965 whi c h deal t w i t h pay me nt of bonus; a nd
n t he Eq ual Re muner ati on Act, 1976 whi c h pr ovi de d f or non- di s cri m i nati on bet wee n e mpl oyees doi ng s a me wor k or wor k of a si mil ar nat ur e.
1.3 Territorial extent of the Code
u The Code ext e nds t o t he whol e of I ndi a. It has no exe mpti on f or t he St at e of J a mmu & Kas h m i r as us e d t o be t he cas e i n l a ws pass e d i n t he pr e- Arti cl e 370 er a
1.4 Date of coming into force of the provisions of the Code
u The Code s hall c o me i nt o f or ce on s uc h dat e as t he Ce nt r al Gover n me nt may, by noti fi cati on i n t he Offi ci al Gaz ett e [Para 1.4-1 ] appoi nt (i.e. 21-11-2025)
u Di ff er e nt dat es may be appoi nt e d f or di ff er e nt pr ovi si ons of t hi s Code.
u Any r ef er e nce i n a ny s uc h pr ovi si on t o t he c o mme nce me nt of t hi s Code s hall be c onst r ue d as a r ef er e nce t o t he c o m i ng i nt o f or ce of t hat pr ovi si on.
1.4-1 Publication in e-Gazette is Notification in the Official GazetteThe f oll o w i ng poi nt s ar e not e wort hy:
u Publi cati on i n e- Gaz ett e wo ul d a mo unt t o Noti fi cati on i n Offi ci al Gaz ett e.
u The Press Information Bureau, Government of India, i ss ue d a pr ess r el eas e on 9t h Oct ober, 2015, st ati ng t hat i n a si g ni fi ca nt i ni ti ati ve, t he M i ni st r y of Ur ba n Devel op me nt has st oppe d physi cal pri nti ng of Gover n me nt of I ndi a ’ s gaz ett e noti fi cati on a nd i nt r oduce d e- p ubli s hi ng of t he s a me p utti ng a n e nd t o a l ong wai t f or t he i mport a nt doc u me nt.
u Furt her, i t was st at e d t hat gaz ett e noti fi cati on i s a n i mport a nt l egal r e q ui r e me nt t o vali dat e, a ut he nti cat e a nd t o make eff ecti ve vari o us ki nds of l a ws, Act s, r ul es, or ders a nd gover n me nt deci si ons.
u All us er gr o ups ha d t o wai t f or a f e w mont hs f or c opi es of s uc h noti fi cati on as physi cal pri nti ng of t he s a me was a ti me t aki ng exer ci s e.
u The M i ni st ri es a nd de part me nt s of Gover n me nt us e d t o s ub m i t t hei r Gaz ett e p ubli cati on r e q ui r e me nt s t o t he Gover n me nt Pri nti ng Pr ess es, wher e t he wor k of t ype s etti ng, pri nti ng a nd p ubli cati on was undert ake n a nd har d c opi es wer e t he n ma de avail a bl e f or s al e f or us age by all Gover n me nt a nd pri vat e us ers
u The M i ni st r y of Ur ba n devel op me nt s di r ect e d t he De part me nt of p ubli cati on t o st op physi cal pri nti ng a nd s w i t c h over t o e- p ubli s hi ng of all gaz ett e noti fi cati ons on i t s offi ci al gaz ett e w i t hi n t he fi ve days of r ecei pt of t he s a me f r o m t he r es pecti ve M i ni st ri es a nd De part me nt s
u
Us er gr o ups a nd ci ti z e ns ca n do wnl oa d a nd pri nt all gaz ett e noti fi cati ons f r ee of c har ge.
The a bove e nvi r on me nt all y- f ri e ndl y ne wpr acti ce of di s c onti nui ng physi cal pri nti ng of Offi ci al Gaz ett e a nd s w i t c hi ng over t o e- p ubli s hi ng of all Gaz ett e noti fi cati ons i n e- Gaz ett e r ecei ve d i mpri mat ur of j udi ci ar y i n
Cascade Energy (Pte.) Ltd. v . Union of India [ 2018] 90 t ax ma nn c o m 28 ( Ma d. ) wher e t he Co urt obs er ve d as under:
“ ….. Thus, i t i s cl ear t hat e- p ubli s hi ng of Gover n me nt of I ndi a gaz ett e i s a s ubsti t ut e f or physi cal pri nti ng of t he gaz ett e noti fi cati on. The Pr ess Rel eas e cl earl y i ndi cat es t hat physi cal pri nti ng of gaz ett e noti fi cati on i s ti me c ons u m i ng, expe nsi ve a nd not e nvi r on me nt f ri e ndl y. If s uc h i s t he obj ecti ve of t he Gover n me nt of I ndi a, i t wo ul d be t oo har d a pr oposi ti on t o st at e t hat t he noti fi cati on i ss ue d by t he Gover n me nt wo ul d t ake eff ect onl y f r o mt he dat e on whi c h, i t i s upl oa de d i n t he offi ci al we bsi t e If t he s a me i nt er pr et ati on i s t o be gi ve n w i t h r egar d t o t he ol d pr acti ce of physi cal pri nti ng, t he n i t wo ul d a mo unt t o st ati ng t hat t he noti fi cati on i ss ue d by t he Gover nme nt of I ndi a, wo ul d c o me i nt o f or ce, onl y on t he dat e whe n i t i s ma de avail a bl e f or s al e t o t he p ubli c. Thi s i nt er pr et ati on i s wholl y unt e na bl e a nd c ont r ar y t o t he l a w l ai d do wn by t he Apex Co urt. I nt er esti ngl y, t he a ut hori t y who i s c o mpet e nt t o s peak on t he dat e of p ubli cati on has st at e d t hat t he dat e of e- p ubli cati on on e- gaz ett e we bsi t e i s 18. 05. 2017. Thus, t he dat e of upl oa di ng by t he Di r ect or at e of Pri nti ng i s of no c ons e q ue nce a nd what i s r el eva nt, i s t he dat e as certi fi e d by t he
De part me nt of Publi cati on t hat i s on 18 05 2017 ”
Thus, t he Rul es or ot her Noti fi cati ons wo ul d be t r eat e d as noti fi e d on t he dat e of p ubli cati on as certi fi e d by t he De part me nt of Publi cati on. The dat e of upl oa di ng on offi ci al we bsi t e i s of no c ons e q ue nce.
Publi cati on i n t he Offi ci al Gaz ett e has a well - est a bli s he d l egal p ur pos e a nd i s not a n i dl e f or mali t y. Publi cati on of Rul es f r a me d under t he Co mpa ni es Act, 2013, on t he offi ci al we bsi t e of M i ni st r y of Cor por at e Aff ai rs ca nnot be t r eat e d as ‘ Noti fi cati on ’ [Wadala Commodities Ltd., In re [ 2014] 45 t ax ma nn. c o m 245/125 S CL 337 ( Bo m . ) ]
1.5 Aims and objects of the Code
Par a 3 of t he St at e me nt of Obj ect s a nd Reas ons t o t he Code expl ai ns t he ai ms a nd obj ect s of t he Code as under:
“ 3 The a mal ga mati on of t he s ai d l a ws will f acili t at e t he i mpl e me nt ati on a nd al s o r e move t he mul ti pli ci t y of defi ni ti ons a nd a ut hori ti es w i t ho ut c o mpr o m i si ng on t he basi c c once pt s of wel f ar e a nd be nefi t s t o wor kers. The pr opos e d l egi sl ati on wo ul d bri ng t he us e of t ec hnol ogy i n i t s e nf or ce me nt All t hes e meas ur es wo ul d bri ng t r a ns par e ncy a nd acc o unt a bili t y whi c h wo ul d l ea d t o mor e eff ecti ve e nf or ce me nt. W i de ni ng t he s c ope of m i ni mu m wages t o all wor kers wo ul d be a bi g st e p f or e q - ui t y The f acili t ati on f or eas e of c o mpli a nce of l a bo ur l a ws will pr o mot e i n s etti ng up of mor e e nt er pri s es t hus cat al yzi ng t he cr eati on of e mpl oy me nt opport uni ti es”
The Ce nt r al Gover n me nt’ s cl ari fi cati on on t he Code expl ai ns as f oll o ws:
“ 1 The Code on Wages Bill s ubs u mes 4 exi sti ng La ws, viz t he M i ni mu m Wages Act, 1948; t he Pay me nt of Wages Act, 1936; t he Pay me nt of Bonus Act, 1965; a nd t he Eq ual Re muner ati on Act, 1976. Aft er t he e nact me nt of t he Code on Wages, all t hes e f o ur Act s will get r e peal e d The c odi fi cati on of t he La bo ur La ws will r e move t he mul ti pli ci t y of defi ni ti ons a nd a ut hori ti es l ea di ng t o eas e of c o mpli a nce w i t ho ut c o mpr o m i si ng wage s ec uri t y a nd s oci al s ec uri t y t o t he wor kers. ”
1.6 Salient features of the Code
The s ali e nt f eat ur es of t he Code, inter alia , ar e as f oll o ws:
( a ) i t pr ovi des f or all ess e nti al el e me nt s r el ati ng t o wages, e q ual r e muner ati on, i t s pay me nt a nd bonus;
(b ) t he pr ovi si ons r el ati ng t o wages s hall be appli ca bl e t o all e mpl oy me nt s c overi ng bot h or ga ni s e d as well as un- or ga ni s e d s ect ors;
( c ) t he po wer t o fi x m i ni mu m wages c onti nues t o be vest e d i n t he Ce nt r al Gover n me nt as well t he St at e Gover n me nt i n t hei r r es pecti ve s pher e;
(d ) i t e na bl es t he appr opri at e Gover n me nt t o det er m i ne t he f act ors by whi c h t he m i ni mu m wages s hall be fi xe d f or di ff er e nt cat egor y of e mpl oyees The f act ors s hall be det er m i ne d t aki ng i nt o acc o unt t he s kill s r e q ui r e d, t he ar duo us ness of t he wor k assi g ne d, ge ogr aphi cal l ocati on of t he wor kpl ace a nd ot her as pect s whi c h t he appr opri at e Gover n me nt c onsi ders necess ar y;
( e ) t he pr ovi si ons r el ati ng t o ti mel y pay me nt of wages a nd a ut hori s e d de ducti ons f r o m wages, whi c h ar e pr es e ntl y appli ca bl e onl y i n r es pect of e mpl oyees dr a w i ng wages of t we nt y- f o ur t ho us a nd r upees per mont h, s hall be ma de appli ca bl e t o all e mpl oyees i rr es pecti ve of wage ceili ng The appr opri at e Gover n me nt may ext e nd t he c over age of s uc h pr ovi si ons t o t he Gover n me nt est a bli s h me nt s al s o;
PIB Press Release, dated 23.07.2019 , expl ai ns t hat t he s ali e nt f eat ur es of t he Code ar e as f oll o w i ng:
u The Code on Wage uni vers ali z es t he pr ovi si ons of m i ni mu m wages a nd ti mel y pay me nt of wages t o all e mpl oyees i rr es pecti ve of t he s ect or a nd wage ceili ng. At pr es e nt, t he pr ovi si ons of bot h M i ni mu m Wages Act a nd Pay me nt of Wages Act appl y on wor kers bel o w a parti c ul ar wage ceili ng wor ki ng i n Sc he dul e d E mpl oy me nt s onl y. Thi s wo ul d e ns ur e “ Ri g ht t o Sust e na nce” f or ever y wor ker a nd i nt e nds t o i ncr eas e t he l egi sl ati ve pr ot ecti on of m i ni mu m wage f r o m exi sti ng a bo ut 40 % t o 100 % wor kf or ce. Thi s wo ul d e ns ur e t hat ever y wor ker get s m i ni mu m wage whi c h will al s o be acc o mpa ni e d by i ncr eas e i n t he p ur c hasi ng po wer of t he wor ker t her e by gi vi ng filli p t o gr o wt h i n t he ec ono my. I nt r oducti on of st at ut or y Fl oor Wage t o be c o mp ut e d bas e d on m i ni mu m li vi ng c ondi ti ons, will ext e nd q uali t ati ve li vi ng c ondi ti ons acr oss t he c o unt r y t o a bo ut 50 cr or e wor kers It i s e nvi s age d t hat t he St at es t o noti f y pay me nt of wages t o t he wor kers t hr o ug h di gi t al mode u Ther e ar e 12 di ff er e nt defi ni ti ons of wages i n t he di ff er e nt La bo ur La ws l ea di ng t o li ti gati on besi des di ffi c ul t y i n i t s i mpl e me nt ati on. The defi ni ti on has no w bee n si mpli fi e d a ndi s expect e dt o r e duceli ti gati on a nd will e nt ail l ess er c ost of c o mpli a nce f or a n e mpl oyer. An est a bli s h me nt will al s o be be nefi t e d as t he nu mber of r egi st ers, r et ur ns, f or ms et c , not onl y ca n be el ect r oni call y fil e d a nd mai nt ai ne d, but i t i s e nvi s age d t hat t hr o ug h r ul es, not mor e t ha n one t e mpl at e will be pr es cri be d
u At pr es e nt, ma ny of t he St at es have mul ti pl e m i ni mu m wages. Thr o ug h Code on Wages, t he met hodol ogy t o fi x t he m i ni mu m wages has bee n si mpli fi e d a nd r ati onali s e d by doi ng a way w i t h t ype of e mpl oy me nt as one of t he cri t eri a f or fi xati on of m i ni mu m wage. The m i ni mu m wage fi xati on wo ul d pri maril y be bas e d on ge ogr aphy a nd s kill s. It will s ubst a nti all y r e duce t he nu mber of m i ni mu m wages i n t he c o unt r y f r o m exi sti ng mor e t ha n 2000 r at es of m i ni mu m wages.
u Ma ny c ha nges have bee n i nt r oduce d i n t he i ns pecti on r egi mes i ncl udi ng we b bas e d r a ndo m i s e d c o mp ut eri s e d i ns pecti on s c he me, j uri s di cti on- f r ee i ns pecti ons, calli ng of i nf or mati on el ect r oni call y f or i ns pecti on, c o mposi ti on of fi nes et c. All t hes e c ha nges will be c onduci ve f or e nf or ce me nt of l a bo ur l a ws w i t h t r a ns par e ncy a nd acc o unt a bili t y
u Ther e wer e i nst a nces t hat due t o s mall er li m i t ati on peri od, t he cl ai ms of t he wor kers c o ul d not be r ai s e d. To pr ot ect t he i nt er est of t he wor kers, t he li m i t ati on peri od
has bee n r ai s e d t o 3 years a nd ma de uni f or mf or fili ng cl ai ms f or m i ni mu m wages, bonus, e q ual r e muner ati on et c., as agai nst exi sti ng var yi ng peri od bet wee n 6 mont hs t o 2 years.
u It ca n be s ai d t hat a hi st ori cal st e p f or e ns uri ng st at ut or y pr ot ecti on f or m i ni mu m wage a nd ti mel y pay me nt of wage t o 50 cr or e wor ker i n t he c o unt r y has bee n t ake n t hr o ug h t he Code on Wages besi des pr o moti ng eas e of li vi ng a nd eas e of doi ng busi ness
Definitions.
1 2. I n t hi s Co de, unl ess t he c o nt e xt ot her w i s e r e q ui r es, ( a ) “ acc o unti ng ye ar” me a ns t he ye ar c o mme nci ng o n t he 1st day of April;
Corresponding Provision : Secti on 2(1 ) of Pay me nt of Bonus Act, 1965
(b ) “ Advi s or y Boar d” me a ns t he Ce nt r al Advi s or y Boar d or, as t he c as e may be, t he St at e Advi s or y Boar d, c o nsti t ut e d under s ecti o n 42;
( c ) “ agri c ul t ur al i nc o me t ax l a w ” me a ns a ny l a wf or t he ti me bei ng i n f or ce r el ati ng t o t he l e vy of t ax o n agri c ul t ur al i nc o me;
Corresponding Provision : Secti on 2(3 ) of Pay me nt of Bonus Act, 1965
(d ) “ a ppr opri at e Gover n me nt” me a ns,
(i ) i n r el ati o n t o, a n est a bli s h me nt c arri e d o n by or under t he a ut hor - i t y of t he Ce nt r al Gover n me nt or t he est a bli s h me nt of r ail ways, m i nes, oil fiel d, maj or port s, ai r t r a ns port s er vi ce, t el ec o mmunic ati o n, ba nki ng a nd i ns ur a nce c o mpa ny or a c or por ati o n or ot her a ut hori t y est a bli s he d by a Ce nt r al Act or a ce nt r al p ubli c s ect or undert aki ng or s ubsi di ar y c o mpa ni es s et up by ce nt r al p ubli c s ect or undert a ki ngs or a ut o no mo us bo di es o wne d or c o nt r oll e d by t he Ce nt r al Gover n me nt, i ncl udi ng est a bli s h me nt of c o nt r act ors f or t he p ur pos es of s uc h est a bli s h me nt, c or por ati o n or ot her a ut hor - i t y, ce nt r al p ubli c s ect or undert a ki ngs, s ubsi di ar y c o mpa ni es or a ut o no mo us bo di es, as t he c as e may be, t he Ce nt r al Gover n me nt; (ii ) i n r el ati o n t o a ny ot her est a bli s h me nt, t he St at e Gover n me nt;
Corresponding Provision : Secti on 2(5 ) of Pay me nt of Bonus Act, 1965/s ecti on 2(b ) of M i ni mu m Wages Act, 1948/s ecti on 2(i ) of Pay me nt of Wages Act, 1936/s ecti on 2( a ) of Eq ual Re muner ati on Act, 1976
( e ) “ c o mpa ny” me a ns a c o mpa ny as defi ne d i n cl a us e (20 ) of s ecti o n 2 of t he Co mpa ni es Act, 2013 ( 18 of 2013) * ;
Corresponding Provision : Secti on 2(9 ) of Pay me nt of Bonus Act, 1965
(f ) “ c o nt r act or”, i n r el ati o n t o a n est a bli s h me nt, me a ns a pers o n, who (i ) undert a kes t o pr o d uce a gi ve n r es ul t f or t he est a bli s h me nt, ot her t ha n a mer e s uppl y of g oo ds or arti cl es of ma n uf act ur e t o s uc h est a bli s h me nt, t hr o ug h c o nt r act l a bo ur; or
1 Enf or ce d w i t h eff ect f r o m 21-11-2025
* See s ecti on 2(20 ) of Co mpa ni es Act, 2013, see Appendix .
( g ) “
(ii ) s uppli es c o nt r act l a bo ur f or a ny wor k of t he est a bli s h me nt as mer e h u ma n r es o ur ce a nd i ncl udes a s ub- c o nt r act or;
c o nt r act l a bo ur” mea ns a wor ker who s hall be dee me dt o be e mpl oye di n or i n c o nnecti o n w i t h t he wor k of a n est a bli s h me nt whe n he i s hi r e di n or i n c o nnecti o n w i t h s uc h wor k by or t hr o ug h a c o nt r act or, w i t h or w i t ho ut t he kno w l e dge of t he pri nci pal e mpl oyer a ndi ncl udes i nt er- St at e m i gr a nt wor ker b ut does not i ncl ude a wor ker ( ot her t ha n part- ti me e mpl oyee) who
(i ) i s r e g ul arl y e mpl oye d by t he c o nt r act or f or a ny acti vi t y of hi s est a bli s h me nt a nd hi s e mpl oy me nt i s g over ne d by mut uall y acce pt e d st a ndar ds of t he c o ndi ti o ns of e mpl oy me nt (i ncl udi ng e ngage me nt o n per ma ne nt basi s), a nd
(ii ) get s peri o di c al i ncr e me nt i n t he pay, s oci al s ec uri t y c over age a nd ot her wel f ar e be ne fit s i n acc or da nce w i t h t he l a w f or t he ti me bei ng i n f or ce i n s uc h e mpl oy me nt;
(h ) “ c o- oper ati ve s oci et y ” me a ns a s oci et y r e gi st er e d or dee me d t o be r e g - i st er e d under t he Co- oper ati ve Soci eti es Act, 1912 ( 2 of 1912), or a ny ot her l a w f or t he ti me bei ng i n f or ce r el ati ng t o c o- oper ati ve s oci eti es i n a ny St at e;
Corresponding Provision : Secti on 2(10 ) of Pay me nt of Bonus Act, 1965
(i ) “ c or por ati o n” me a ns a ny bo dy c or por at e est a bli s he d by or under a ny Ce nt r al Act, or St at e Act, b ut does not i ncl ude a c o mpa ny or a c o- oper - ati ve s oci et y;
Corresponding Provision : Secti on 2(11 ) of Pay me nt of Bonus Act, 1965
(j ) “ di r ect t ax” me a ns
(i ) a ny t ax c har ge a bl e under t he
(A ) I nc o me- t ax Act, 1961 ( 43 of 1961);
(B ) Co mpa ni es ( Pr o fit s) Surt ax Act, 1964 ( 7 of 1964);
(C ) Agri c ul t ur al i nc o me t ax l a w ; a nd
(ii ) a ny ot her t ax whi c h, havi ng r e gar d t o i t s nat ur e or i nci de nce, may be decl ar e d by t he Ce nt r al Gover n me nt, by noti fic ati o n, t o be a di r ect t ax f or t he p ur pos es of t hi s Co de;
Corresponding Provision : Secti on 2(12 ) of Pay me nt of Bonus Act, 1965
(k ) “ e mpl oyee” me a ns, a ny pers o n ( ot her t ha n a n a ppr e nti ce e ngage d un - der t he Appr e nti ces Act, 1961 ( 52 of 1961), e mpl oye d o n wages by a n est a bli s h me nt t o do a ny s kill e d, s e m i - s kill e d or uns kill e d, ma n ual, oper ati o nal, s uper vi s or y, ma nageri al, a d m i ni st r ati ve, t ec hni c al or cl eri c al wor k f or hi r e or r e war d, whet her t he t er ms of e mpl oy me nt be e x pr ess or i mpli e d, a nd al s o i ncl udes a pers o n decl ar e d t o be a n e mpl oyee by
t he a ppr opri at e Gover n me nt, b ut does not i ncl ude a ny me mber of t he Ar me d For ces of t he Uni o n;
Corresponding Provision : Secti on 2(13 ) of Pay me nt of Bonus Act, 1965/ Sec. 2(ia ) of Pay me nt of Wages Act, 1936/ Sec. 2(i ) of M i ni mu m Wages Act, 1948
(l ) “ e mpl oyer” me a ns a pers o n who e mpl oys, whet her di r ectl y or t hr o ug h a ny pers o n, or o n hi s be hal f or o n be hal f of a ny pers o n, o ne or mor e e mpl oyees i n hi s est a bli s h me nt a nd wher e t he est a bli s h me nt i s c arri e d o n by a ny de part me nt of t he Ce nt r al Gover n me nt or t he St at e Gover nme nt, t he a ut hori t y s peci fie d, by t he he a d of s uc h de part me nt, i n t hi s be hal f or wher e no a ut hori t y, i s s o s peci fie d t he he a d of t he de part me nt a nd i n r el ati o n t o a n est a bli s h me nt c arri e d o n by a l oc al a ut hori t y, t he c hi ef e xec uti ve of t hat a ut hori t y, a nd i ncl udes, —
(i ) i n r el ati o n t o a n est a bli s h me nt whi c h i s a f act or y, t he occ upi er of t he f act or y as de fine d i n cl a us e ( n ) of s ecti o n 2 of t he Fact ori es Act, 1948* ( 63 of 1948) a nd, wher e a pers o n has bee n na me d as a ma nager of t he f act or y under cl a us e (f ) of s ub- s ecti o n ( 1) of s ecti o n 7* of t he s ai d Act, t he pers o n s o na me d;
(ii ) i n r el ati o n t o a ny ot her est a bli s h me nt, t he pers o n who, or t he a ut hori t y whi c h, has ul ti mat e c o nt r ol over t he aff ai rs of t he es - t a bli s h me nt a nd wher e t he s ai d aff ai rs i s e nt r ust e d t o a ma nager or ma nagi ng di r ect or, s uc h ma nager or ma nagi ng di r ect or;
(iii ) c o nt r act or; a nd
(iv ) l e gal r e pr es e nt ati ve of a dece as e d e mpl oyer;
Corresponding Provision : Secti on 2(14 ) of Pay me nt of Bonus Act, 1965/s ecti on 2(ib ) of Pay me nt of Wages Act, 1936/s ecti on 2( e ) of M i ni mu m Wages Act, 1948/s ecti on 2( c ) of Eq ual Re muner ati on Act, 1976.
( m )
“ est a bli s h me nt” me a ns a ny pl ace wher e a ny i nd ust r y, t r a de, b usi ness, ma n uf act ur e or occ upati o n i s c arri e d o n a nd i ncl udes Gover n me nt est a bli s h me nt;
Corresponding Provision : Secti on 2(15 ) a nd 2(16 ) of Pay me nt of Bonus Act, 1965/ s ecti on 2(ii ) of Pay me nt of Wages Act, 1936.
( n ) “ f act or y ” me a ns a f act or y as defi ne d i n cl a us e ( m ) of s ecti o n 2 of t he Fact ori es Act, 1948* ( 63 of 1948);
Corresponding Provision : Secti on 2(ic ) of Pay me nt of Wages Act, 1936/s ecti on 2(17 ) of Pay me nt of Bonus Act, 1965.
( o ) “ Gover n me nt est a bli s h me nt” me a ns a ny offi ce or de part me nt of t he Gover n me nt or a l oc al a ut hori t y;
Corresponding Provision : Secti on 2(16 ) of Pay me nt of Bonus Act, 1965
( p ) “I nc o me- t ax Act” me a ns t he I nc o me- t ax Act, 1961 ( 43 of 1961);
Corresponding Provision : Secti on 2(19 ) of Pay me nt of Bonus Act, 1965
* See s ecti ons 2( m ) a nd 2( n ) a nd 7( 1) of Fact ori es Act, 2013, see Appendix
( q ) “i nd ust ri al di s p ut e” me a ns,
(i ) a ny di s p ut e or di ff er e nce bet wee n e mpl oyers a nd e mpl oyers, or bet wee n e mpl oyers a nd wor kers or bet wee n wor kers a nd wor kers whi c h i s c o nnect e d w i t h t he e mpl oy me nt or no n- e mpl oy me nt or t he t er ms of e mpl oy me nt or w i t h t he c o ndi ti o ns of l a bo ur, of a ny pers o n; a nd
(ii ) a ny di s p ut e or di ff er e nce bet wee n a n i ndi vi d ual wor ker a nd a n e mpl oyer c o nnect e d w i t h, or ari si ng o ut of, di s c har ge, di s m i ss al, r et r e nc h me nt or t er m i nati o n of s uc h wor ker;
( r ) “I ns pect or- c u m - Facili t at or” mea ns a pers on appoi nt e d by t he appr opri at e Gover n me nt under s ub- s ecti o n ( 1) of s ecti o n 51;
( s ) “ m i ni mu m wage” me a ns t he wage fi xe d under s ecti o n 6;
( t ) “ noti fi c ati o n” me a ns a noti fi c ati o n p ubli s he d i n t he Gaz ett e of I ndi a or i n t he Offi ci al Gaz ett e of a St at e, as t he c as e may be, a nd t he e x pr essi o n
“ noti f y ” w i t h i t s gr a mmati c al vari ati o ns a nd c og nat e e x pr essi o ns s hall be c o nst r ue d acc or di ngl y;
Corresponding Provision : Secti on 2( e ) of Eq ual Re muner ati on Act, 1976
( u )
“ pr es cri be d” me a ns pr es cri be d by r ul es ma de by t he a ppr opri at e Gover n me nt;
Corresponding Provision : Secti on 2(f ) of Eq ual Re muner ati on Act, 1976/s ecti on 2(20 ) of Pay me nt of Bonus Act, 1965/s ecti on 2(iv ) of Pay me nt of Wages Act, 1936/ s ecti on 2(f ) of M i ni mu m Wages Act, 1948
( v ) “ s a me wor k or wor k of a si mil ar nat ur e” me a ns wor k i n r es pect of whi c h t he s kill, eff ort, e x peri e nce a nd r es po nsi bili t y r e q ui r e d ar e t he s a me, whe n perf or me d under si mil ar wor ki ng c o ndi ti o ns by e mpl oyees a nd t he di ff er e nce i f a ny, bet wee n t he s kill, eff ort, e x peri e nce a nd r es po nsi bili t y r e q ui r e d f or e mpl oyees of a ny ge nder, ar e not of pr acti c al i mport a nce i n r el ati o n t o t he t er ms a nd c o ndi ti o ns of e mpl oy me nt;
Corresponding Provision : Secti on 2(h ) of Eq ual Re muner ati on Act, 1976.
( w ) “ St at e” i ncl udes a Uni o n t erri t or y;
( x ) “ Tri b unal ” s hall have t he s a me me a ni ng as assi g ne d t o i t i n cl a us e ( r ) of s ecti o n 2 of t he I nd ust ri al Di s p ut es Act, 1947* ( 14 of 1947);
( y ) “ wages” mea ns all r e muner ati on whet her by way of s al ari es, all o wa nces or ot her w i s e, e x pr ess e di n t er ms of mo ne y or c a pa bl e of bei ng s o e x pr ess e d whi c h wo ul d, i f t he t er ms of e mpl oy me nt, e x pr ess or i mpli e d, wer e f ul fill e d, be paya bl e t o a pers o n e mpl oye d i n r es pect of hi s e mpl oy me nt or of wor k do ne i n s uc h e mpl oy me nt, a nd i ncl udes,
(i ) basi c pay;
(ii ) de ar ness all o wa nce; a nd
(iii ) r et ai ni ng all o wa nce, i f a ny,
* See s ecti on 2( r ) of I ndust ri al Di s p ut es Act, 1947, see Appendix .
b ut does not i ncl ude
( a ) a ny bo n us paya bl e under a ny l a w f or t he ti me bei ng i n f or ce, whi c h does not f or m part of t he r e muner ati o n paya bl e under t he t er ms of e mpl oy me nt;
(b ) t he val ue of a ny ho us e acc o mmo dati o n, or of t he s uppl y of li g ht, wat er, me di c al att e nda nce or ot her a me ni t y or of a ny s er vi ce e xcl ude d f r o mt he c o mp ut ati o n of wages by a ge ner al or s peci al or der of t he a ppr opri at e Gover n me nt;
( c ) a ny c o nt ri b uti o n pai d by t he e mpl oyer t o a ny pe nsi o n or pr ovi de nt f und, a nd t he i nt er est whi c h may have accr ue d t her e o n;
(d ) a ny c o nve ya nce all o wa nce or t he val ue of a ny t r avelli ng c o nces - si o n;
( e ) a ny s u m pai d t o t he e mpl oye d pers o n t o def r ay s peci al e x pe ns es e nt ail e d o n hi m by t he nat ur e of hi s e mpl oy me nt;
(f ) ho us e r e nt all o wa nce;
( g ) r e muner ati o n paya bl e under a ny a war d or s ettl e me nt bet wee n t he parti es or or der of a c o urt or Tri b unal;
(h ) a ny overti me all o wa nce;
(i ) a ny c o mm i ssi o n paya bl e t o t he e mpl oyee;
(j ) a ny gr at ui t y paya bl e o n t he t er m i nati o n of e mpl oy me nt;
(k ) a ny r et r e nc h me nt c o mpe ns ati o n or ot her r eti r e me nt be ne fit paya bl e t o t he e mpl oyee or a ny ex gratia pay me nt ma de t o hi m o n t he t er m i nati o n of e mpl oy me nt:
Provided t hat, f or c al c ul ati ng t he wages under t hi s cl a us e, i f pay me nt s ma de by t he e mpl oyer t o t he e mpl oyee under cl a us es ( a ) t o (i ) e xcee ds o ne- hal f, or s uc h ot her per ce nt as may be noti fi e d by t he Ce nt r al Gover n me nt, of t he all r e muner ati o n c al c ul at e d under t hi s cl a us e, t he a mo unt whi c h e xcee ds s uc h o ne- hal f, or t he per ce nt s o noti fi e d, s hall be dee me d as r e muner ati o n a nd s hall be acc or di ngl y a dde d i n wages under t hi s cl a us e:
Provided further t hat f or t he p ur pos e of e q ual wages t o all ge nders a nd f or t he p ur pos e of pay me nt of wages, t he e mol u me nt s s peci fie d i n cl a us es (d ), (f ), ( g ) a nd (h ) s hall be t a ke n f or c o mp ut ati o n of wage.
Explanation.—
Wher e a n e mpl oyee i s gi ve n i n li e u of t he whol e or part of t he wages paya bl e t o hi m , a ny r e muner ati o n i n ki nd by hi s e mpl oyer, t he val ue of s uc h r e muner ati o n i n ki nd whi c h does not e xcee d fift ee n per ce nt of t he t ot al wages paya bl e t o hi m , s hall be dee me d t o f or m part of t he wages of s uc h e mpl oyee;
Corresponding Provision : Secti on 2( g ) of Eq ual Re muner ati on Act, 1976/s ecti on 2(21 ) of Pay me nt of Bonus Act, 1965/s ecti on 2(h ) of M i ni mu m Wages Act, 1948/ s ecti on 2(vi ) of Pay me nt of Wages Act, 1936.
( z ) “ wor ker” mea ns a ny pers on( exce pt a n appr e nti ce as defi ne d under cl a us e ( aa ) of s ecti o n 2 of t he Appr e nti ces Act, 1961* ( 52 of 1961) e mpl oye d i n a ny i nd ust r y t o do a ny ma n ual, uns kill e d, s kill e d, t ec hni c al, oper ati o nal, cl eri c al or s uper vi s or y wor k f or hi r e or r e war d, whet her t he t er ms of e mpl oy me nt be e x pr ess or i mpli e d, a nd i ncl udes
(i ) wor ki ng j o ur nali st s as de fine d i n cl a us e (f ) of s ecti o n 2 of t he Wor ki ng J o ur nali st s a nd ot her Ne ws pa per E mpl oyees ( Co ndi ti o ns of Ser vi ce) a nd M i s cell a ne o us Pr ovi si o ns Act, 1955** ( 45 of 1955); a nd
(ii ) s al es pr o moti o n e mpl oyees as de fine d i n cl a us e (d ) of s ecti o n 2 of t he Sal es Pr o moti o n E mpl oyees ( Co ndi ti o ns of Ser vi ce) Act, 1976† ( 11 of 1976), a nd f or t he p ur pos es of a ny pr ocee di ng under t hi s Co de i n r el ati o n t o a n i nd ust ri al di s p ut e, i ncl udes a ny s uc h pers o n who has bee n di s m i ss e d, di s c har ge d or r et r e nc he d or ot her w i s e t er m i nat e d i n c o nnecti o n w i t h, or as a c o ns e q ue nce of, t hat di s p ut e, or whos e di s m i ss al, di s c har ge or r et r e nc h me nt has l e d t o t hat di s p ut e, b ut does not i ncl ude a ny s uc h pers o n
( a ) who i s s ubj ect t o t he Ai r For ce Act, 1950 ( 45 of 1950), or t he Ar my Act, 1950 ( 46 of 1950), or t he Navy Act, 1957 ( 62 of 1957); or
(b ) who i s e mpl oye d i n t he poli ce s er vi ce or as a n of ficer or ot her e mpl oyee of a pri s o n; or
( c ) who i s e mpl oye d mai nl y i n a ma nageri al or a d m i ni st r ati ve c a paci t y; or
(d ) who i s e mpl oye d i n a s uper vi s or y c a paci t y dr a w i ng wage of e xcee di ng fift ee n t ho us a nd r upees per mo nt h or a n a mo unt as may be noti fie d‡ by t he Ce nt r al Gover n me nt f r o mti me t o ti me.
Corresponding Provision : Secti on 2(i ) of Eq ual Re muner ati on Act, 1976
COMMENTS
SECTION NOTES
2.0 All definitions in section 2 are qualified by the phrase “In this Code, unless the context otherwise requires”.
u All t he defi ni ti ons i n s ecti on 2 ar e q uali fi e d by t he ope ni ng phr as e “I n t hi s Code, unl ess t he c ont ext ot her w i s e r e q ui r es”
u Tho ug h nor mall y t he wor ds us e d i n t he Code s hall be underst ood as defi ne d i n s ecti on 2, a di ff er e nt mea ni ng s hall be a dopt e d i f t he c ont ext s o r e q ui r es
u The fi rst li mb of t he ope ni ng s e nt e nce “ In this Code” s uggest s t hat a wor d occ urri ng i n a ny pr ovi si on of t he Code will have t he mea ni ng gi ve n t o i t i n t he defi ni ti on of t hat wor d i n s ecti on 2.
* See s ecti on 2( aa ) of t he Appr e nti ces Act, 1961, see Appendix .
** See s ecti on 2(f ) of t he Wor ki ng J o ur nali st s a nd ot her Ne ws paper E mpl oyees ( Condi ti ons of Ser vi ce) a nd M i s cell a ne o us Pr ovi si ons Act, 1955, see Appendix .
†See s ecti on 2(d ) of t he Sal es Pr o moti on E mpl oyees ( Condi ti ons of Ser vi ce) Act, 1976, see Appendix .
‡ Noti fie d s u mi s Rs 18, 000 - Noti ficati on No S O 454( E), dat e d 30- 1- 2026
u
u
The s ec ond li mb of t he ope ni ng s e nt e nce li m i t s t he s c ope of fi rst li mb by usi ng t he phr as e “ unl ess t he c ont ext ot her w i s e r e q ui r es”. If c ont ext of a pr ovi si on r e q ui r es a di ff er e nt mea ni ng t o be gi ve n t o a wor d t ha n t hat gi ve n t o i t i n s ecti on 2, s uc h di ff er e nt mea ni ng r e q ui r e d by t he c ont ext will be gi ve n t o t hat wor d.
The mea ni ng gi ve n t o a wor d i n defi ni ti on gi ve n i n s ecti on 2 will appl y whe never t hat wor d i s us e d i n a ny pr ovi si on i n t hi s Code unl ess t he c ont ext of t hat pr ovi si on r e q ui r es t he wor d t o be gi ve n a di ff er e nt mea ni ng
For exa mpl e, s ecti on 2( e ) of t he Code defi nes ‘ c o mpa ny ’ t o mea n a c o mpa ny as defi ne d i n s ecti on 2(20 ) of t he Co mpa ni es Act, 2013 Ho wever, f or t he p ur pos es of s ecti on 55 deali ng w i t h ‘ off e nces by t he c o mpa ny ’ , t he t er m‘ c o mpa ny ’ i s defi ne d t o i ncl ude fi r m/ Li m i t e d Li a bili t y Part ners hi p ( LLP) as defi ne d i n LLP Act, 2008/ot her ass oci ati on of i ndi vi dual s He nce, f or s ecti on 55 p ur pos es, t he t er m‘ c o mpa ny ’ will be i nt er pr et e d not as defi ne d i n s ecti on 2( e ) but as defi ne d i n s ecti on 55 s peci fi call y f or t he p ur pos es of t hat s ecti on.
ACCOUNTING YEAR [SEC. 2(a)]
SECTION NOTES
2.1 ‘Accounting year’
u Cl a us e (a) of s ecti on 2 of t he Code defi nes t he t er m‘ Acc o unti ng year ’ t o mea n t he year c o mme nci ng on t he 1st day of April.
u Thi s mea ns t hat cl a us e ( a ) pr ovi des t hat, ‘ acc o unti ng year ’ , f or t he p ur pos es of pay me nt of bonus [ Chapt er I V of t he Code c onsi sti ng of s ecti ons 26 t o 41], s hall mea n t he fi na nci al year 1st April t o 31st Mar c h f or all e mpl oyer- e nti ti es. It does not matt er whet her t he e mpl oyer- e nti t y i s a c or por ati on or a c o mpa ny or a LLP or a fi r m or a pr opri et ors hi p or a c o- oper ati ve s oci et y or a ny ass oci ati on of i ndi vi dual s
u
Unli ke t he Pay me nt of Bo n us Act, t he Co de does not pr ovi de f or di ff er e nt acc o unti ng years f or di ff er e nt t ypes of e mpl oyer e nti ti es
SECTION NOTES
ADVISORY BOARD
[SEC. 2(b)]
2.2 ‘Advisory Board’” Advi s or y Boar d” mea ns u t he Ce nt r al Advi s or y Boar d or, as t he cas e may be, u t he St at e Advi s or y Boar d [See Section 42] .
AGRICULTURAL INCOME
TAX LAW [SEC. 2(c)]
SECTION NOTES
2.3 ‘Agricultural Income Tax Law’ u Cl a us e (c) of s ecti on 2 of t he Code defi nes t he t er m‘ agri c ul t ur al i nc o me t ax l a w ’ t o mea n a ny l a w f or t he ti me bei ng i n f or ce r el ati ng t o t he l evy of t ax on agri c ul t ur al i nc o me.
APPROPRIATE GOVERNMENT
[SEC. 2(d)]
SECTION NOTES
2.4 ‘Appropriate Government’ u Cl a us e (d) of s ecti on 2 of t he Code defi nes t he t er m “ appr opri at e Gover n me nt” uni f or m l y f or all p ur pos es of t he Code ( m i ni mu m wages, pay me nt of wages, pay me nt
of bonus a nd non- di s cri m i nati on i n pay me nt of wages on t he basi s of ge nder). The r ati onal e i s “t o r e move t he mul ti pli ci t y of defi ni ti ons a nd a ut hori ti es l ea di ng t o eas e of c o mpli a nce w i t ho ut c o mpr o m i si ng wage s ec uri t y a nd s oci al s ec uri t y t o t he wor kers”. [Clarification of Central Govt. on “Code on Wages Bill ”]
u Cl a us e (d) defi nes t he t er m“ appr opri at e Gover n me nt” as f oll o ws:
n
The t er m“ appr opri at e Gover n me nt”, i n r el ati on t o specified establishments , mea ns t he Ce nt r al Gover n me nt [Para 2.4-2]
n I n r el ati on t o ot her est a bli s h me nt s, t he t er m“ appr opri at e gover n me nt” mea ns t he St at e Gover n me nt.
2.4-1 Specified establishments in relation to which Central Govt. is the appropriate Govt. Ce nt r al Govt i s t he appr opri at e Govt i n r el ati on t o t he f oll o w i ng est a bli s h me nt s:
u An est a bli s h me nt carri e d on by or under t he a ut hori t y of t he Ce nt r al Gover n me nt, or
u
Est a bli s h me nt of:
n r ail ways,
n m i nes,
n oil fi el d,
n maj or port s,
n ai r t r a ns port s er vi ce,
n t el ec o mmuni cati on,
n ba nki ng c o mpa ny,
n i ns ur a nce c o mpa ny, or
n a c or por ati on or ot her a ut hori t y est a bli s he d by a Ce nt r al Act, or
n a ce nt r al p ubli c s ect or undert aki ng or
n s ubsi di ar y c o mpa ni es s et up by Ce nt r al p ubli c s ect or undert aki ngs, or
n a ut ono mo us bodi es o wne d or c ont r oll e d by t he Ce nt r al Gover n me nt,
n i ncl udi ng est a bli s h me nt of c ont r act ors f or t he p ur pos es of s uc h est a bli s h me nt, c or por ati on or ot her a ut hori t y, ce nt r al p ubli c s ect or undert aki ngs, s ubsi di ar y c o mpa ni es or a ut ono mo us bodi es, as t he cas e may be.
COMPANY [SEC. 2(e)]
SECTION NOTES
2.5 Definition of ‘company’
u Cl a us e (e) of s ecti on 2 of t he Code defi nes t he t er m“ Co mpa ny” t o mea n a c o mpa ny as defi ne d i n cl a us e (20 ) of s ecti on 2 of t he Co mpa ni es Act, 2013.
The f oll o w i ng poi nt s ar e not e wort hy:
u Li ke t he defi ni ti ons i n all ot her cl a us es of s ecti on 2 of t he Code, t he defi ni ti on i n cl a us e ( e ) i s al s o q uali fi e d by t he phr as e “ unl ess t he c ont ext ot her w i s e r e q ui r es”.
u
Thi s defi ni ti on i n cl a us e ( e ) will appl y t o all pr ovi si ons of t he Code wher e t he wor d ‘ c o mpa ny ’ occ urs exce pt wher e “t he c ont ext ot her w i s e r e q ui r es”.
CODE ON WAGES LAW MANUAL
AUTHOR :
Taxmann's Editorial Board
PUBLISHER : Taxmann
DATE OF PUBLICATION : May 2026
EDITION : 2026 Edition
ISBN NO : 9789375611073
NO. OF PAGES : 304
BINDING TYPE : Paperback
Rs. 495
DESCRIPTION
Code on Wages Law Manual is Taxmann's authoritative single-volume working reference on India's wage statute as it now operates in practice. The 2026 Edition reads the Code on Wages 2019 as a system—the statute together with the Central Rules, implementation notifications, supervisor-exclusion ceiling, the Ministry's cross-Code FAQ apparatus and the four-Code compliance machinery that surrounds it—and brings all of these into one volume so the reader can move from concordance lookup to section text, editorial restatement, case law, applicable rule, prescribed form, notification, FAQ and compliance checklist without leaving the book.
This Edition is the first to carry the Code with its full implementation machinery in place: the Code on Wages (Central) Rules 2026, the principal enforcement notification of 21-11-2025, the supervisor-exclusion ceiling notification of 30-1-2026, the Government's tabular OSH&WC FAQ of 13-3-2026, the Additional FAQs on Labour Codes of 16-3-2026 and the Compliance Handbook for Employers under the Four Labour Codes (Central Government Sphere).
The Manual is built for the reader who works with the Code on Wages as operative law and needs the supporting apparatus alongside the statutory text:
•HR, Payroll and Industrial Relations Heads
•In-House Counsel and Labour-Law Practitioners
•Compliance Officers, Company Secretaries and Plant HR Managers
•Chartered Accountants, Cost Accountants and Internal Auditors
•Inspector-cum-Facilitators, Authorities under Section 45, Appellate Authorities under Section 49, Government Officers
•Faculty, Researchers and Students of Labour Law
The Present Publication is the 2026 Edition, updated till 8th May 2026. It is authored/edited by Taxmann's Editorial Board, with the following noteworthy features:
•[Four-Layer Per-Section Treatment] Each section in Division One opens with the statutory text and the Corresponding Provision flag tying it back to the four legacy Acts, followed by Section Notes (plain-language bullets for quick recall), a Comments block of editorial restatement (nutshell synopsis with sub-numbered notes on the points practitioners actually argue) and a Relevant Case Laws block tagged '[now section X of Code on Wages]' so the pre-Code precedent reads directly into the new provision
•[Purpose-Built Concordance Tables] Five concordance tables placed at the front of the volume—one forward table from the Code into all four legacy Acts read together, and four reverse tables from the legacy Acts back into the Code—on the editorial reasoning that the buyer transitioning from legacy practice will start there
•[Long-Form Comparative Study] A free-text analytical chapter reading the Code provision-by-provision against the four legacy Acts and flagging every substantive change—meant to be read in sequence for transitional understanding
•[Code on Wages (Central) Rules 2026 in Full] The operative Central Rules reproduced across the full eight-Chapter sequence with all nine prescribed statutory Forms in full, so the reader does not have to step outside the book to file, contest or maintain compliance
•[Material for Purposive Interpretation] The Statement of Objects and Reasons and the clause-by-clause Notes on Clauses reproduced as separate apparatus blocks, since purposive interpretation arguments before the Authority, the Appellate Authority, Tribunals and High Courts often turn on these materials
•[In-Volume Appendix of Cross-Referenced Statutes] Where the Code refers to a provision of another Act, the referenced provision is reproduced in an Appendix covering eleven enactments—so the reader does not have to leave the volume to locate it
•[Concept-Led Subject Index] Built around the way HR, payroll and compliance professionals actually search—rather than around the section list
•[Complete Notifications and Clarifications Module] Division Three reproduces in full the principal enforcement notification, the early Advisory Board enforcement notification and the supervisor-exclusion ceiling notification
•[Cross-Code Frequently Asked Questions] A seven-part FAQ module covering all four Labour Codes—addressing the most frequently asked operational questions on the floor wage, the revised wages definition and 50% rule, the deductions cap and the universality of minimum wage coverage post-omission of 'scheduled employment'
•[Multi-Chapter Compliance Handbook for the Four Labour Codes] A seven-chapter, five-Annexure compliance reference for employers in the Central Government sphere, organised in chapters per Code and ending with a Summary of Action Points for Employers structured as a four-row ready-reckoner across Foundational, Monthly, Periodical/Annual and Event-Based Compliance—each anchored to specific section references so the practitioner can move from a topic to a compliance action quickly