Code on Wages 2019

Applies to

All employees in all establishments (organised and unorganised) for minimum-wage and timely-payment provisions — not gated by headcount. In force from 21 November 2025; Central Rules notified 8 May 2026; state rules and revised wage schedules being notified.

Key points

• Single statutory 'wages' definition — excluded allowances capped at 50% of total pay, raising PF/gratuity contribution bases.
• National floor wage: states cannot fix minimum wages below it (Section 9).
• Universal coverage for minimum-wage and timely-payment provisions, organised and unorganised.
• In force 21 Nov 2025; Central Rules notified 8 May 2026; state rules being notified.

Applicability triggers

• Any establishment employing one or more employees

Practitioner questions

• How much of our CTC will the 50%-of-wages rule reclassify into 'wages' for PF and gratuity?
• Has my state notified its Wage Code rules and revised minimum-wage schedule?

Sources

• Code on Wages 2019 (India Code)
• Ministry of Labour & Employment