The Ministry of Labour and Employment has officially notified the commencement of major provisions of the Code on Wages, 2019, a landmark legislation aimed at ensuring fair and simplified wage regulation across India.
As per notification S.O. 5322(E) issued in New Delhi on 21 November 2025, the Central Government has exercised its powers under Section 1(3) of the Code to bring multiple provisions into effect from the same day.
This notification marks a significant step in India’s broader labour reforms agenda, under which 29 existing labour laws have been consolidated into four comprehensive Labour Codes.
What the Notification Brings Into Force
The following key provisions of the Code on Wages, 2019 have now been enforced:
1. Sections 1 to 41
These sections form the core of the legislation, covering the Code’s scope, definitions, minimum wage provisions, floor wage norms, wage fixation criteria, and rules for payment of wages.
2. Section 42(4) to 42(9)
These sub-sections relate to the constitution, functioning, and procedures of the Central Advisory Board responsible for matters related to wages, gender equality, and employee welfare.
3. Sections 43 to 66
These include provisions on claims, offences, penalties, inspector-cum-facilitator roles, appeals, and compounding of offences—all designed to enhance transparency and ease of compliance.
4. Section 67—Specific Sub-Sections
The notification enforces:
- Section 67(1)
- Clauses (a) to (r) and (u) to (zc) of Section 67(2)
- Section 67(3) to 67(5)
These provisions empower the Central Government to frame detailed rules relating to wage calculations, registers, forms, payment norms, audits, and other procedural guidelines.
5. Section 68
This section concerns the power of the Central Government to remove difficulties during the implementation of the Code.
6. Section 69
All of Section 69—except provisions already notified under S.O. 4604(E), dated 18 December 2020—is now in force. This section pertains to repeals and savings, formally transitioning from previous wage laws to the new unified Code.
Why the Code on Wages Matters
The Code on Wages, 2019 consolidates four key wage-related Acts:
- The Payment of Wages Act, 1936
- The Minimum Wages Act, 1948
- The Payment of Bonus Act, 1965
- The Equal Remuneration Act, 1976
Its implementation promises:
✔ Universal Minimum Wages
For the first time, minimum wages apply to all employees across sectors.
✔ Establishment of a National Floor Wage
States cannot set wages below this benchmark, ensuring uniformity and fairness.
✔ Gender-Neutral Wage and Employment Policies
Protects against discrimination, including for transgender persons.
✔ Transparent and Timely Wage Payments
All employees, regardless of salary levels, receive the benefit of regulated wage payment norms.
✔ Stronger Enforcement with Less Harassment
The inspector-cum-facilitator system focuses on advisory support and compliance rather than punitive action.
✔ Compounding and Decriminalization
Minor offences attract monetary penalties instead of imprisonment, reducing litigation and improving business ease.
A Milestone in India’s Labour Reform Journey
With major sections of the Code now operational, the government moves closer to fully implementing its modernised labour law framework. The enforcement is expected to:
- Enhance wage security
- Promote formalisation of the workforce
- Boost ease of doing business
- Ensure greater wage transparency and accountability
The notification signals an important commitment to building a fair, inclusive, and business-friendly wage ecosystem.