While the Code and the Code on Wages (Central) Rules prescribe these provisions, their implementation depends on notifications issued by the Centre and individual states.
Here’s a look at some of the key rules.Monthly salaries must be paid by the 7th of the succeeding month
For employees whose wages are paid on a monthly basis, employers are required to make the payment before the expiry of the seventh day of the succeeding month. The Code also prescribes timelines for other wage periods:
| Wage period | Payment timeline |
| Daily | At the end of the working day |
| Weekly | On or before the last working day of the week |
| Fortnightly | Before the expiry of the second day after the end of the fortnight |
| Monthly | Before the expiry of the seventh day of the succeeding month |
Wages payable after resignation or termination must generally be paid within two working days
The Code also specifies when wages must be paid after an employee leaves an organisation. In cases of resignation, dismissal, removal, retrenchment or closure of an establishment, wages due are generally required to be paid within two working days, as provided under the Code.
Timely payment protections extend to all employees
One of the significant changes introduced by the Code is the wider scope of coverage.
Unlike the earlier Payment of Wages Act, 1936, which applied to employees up to a prescribed wage ceiling, the Code extends provisions relating to timely payment of wages and authorised deductions to all employees, irrespective of their salary.
Employees can seek relief for delayed wages and unauthorised deductions
Claims can be filed before the authority appointed under the Code, subject to the prescribed limitation period. The law also provides for the appointment of Inspector-cum-Facilitators to help ensure compliance.
Employers must issue wage slips
The Code on Wages (Central) Rules require employers to provide employees with a wage slip on or before the payment of wages. The wage slip may be issued in physical or electronic form.
The Code regulates wage deductions
The law specifies the categories of deductions that employers are permitted to make from wages and prescribes limits on the aggregate amount that may be deducted during a wage period. The objective is to prevent excessive or unauthorised deductions.
One law replaces four wage-related Acts
The Code on Wages consolidates four central labour laws into a single framework:
- Payment of Wages Act, 1936
- Minimum Wages Act, 1948
- Payment of Bonus Act, 1965
- Equal Remuneration Act, 1976
The objective is to create a uniform legal framework governing wage-related matters across sectors.
First Published: Jul 21, 2026 1:20 PM IST
