Draft Code On Wages (Central) Rules, 2025 Propose Unified Framework For Pay, Minimum Wages And Wage Compliance

The Central Government has taken another step towards operationalizing the new labour law regime by notifying the Draft Code on Wages (Central) Rules, 2025 through Notification No. G.S.R. 936(E) dated 30 December 2025, issued under the Code on Wages, 2019. The draft rules are proposed in supersession of several existing central rules governing wages, bonus and equal remuneration, and are intended to translate the Code’s substantive provisions into a uniform, implementable framework. Stakeholders have been invited to submit their objections and suggestions within the consultation period prescribed from the date of publication in the Official Gazette.

At a structural level, the draft rules aim to bring clarity and consistency in wage administration across establishments by prescribing detailed procedures relating to fixation and revision of minimum wages, payment of wages, permissible deductions, overtime payments and maintenance of wage-related records. A central theme running through the draft is the standardization of wage components, aligned with the statutory definition of “wages” under the Code. This has direct implications for how employers structure salary components and assess statutory compliance across multiple labour enactments.

The draft rules place particular emphasis on the payment of minimum wages, laying down procedural safeguards to ensure that no employee is paid below the notified wage rates. They also prescribe clear timelines and modes of wage payment, including the use of digital payment mechanisms, reinforcing transparency, traceability, and timely disbursement of wages. For employers, this necessitates closer alignment between payroll systems and statutory wage notifications.

In addition to minimum wages, the draft rules address bonus-related compliance, gender-neutral wage practices, and protections against unauthorized or excessive deductions. By consolidating these aspects within a single rule framework, the draft seeks to eliminate overlaps and inconsistencies that existed under earlier laws. The rules also provide for structured mechanisms relating to dispute resolution, recovery of dues and an inspection-cum-facilitation approach, reinforcing enforcement while avoiding undue procedural rigidity.

Consistent with the broader labour code reform agenda, the draft rules encourage electronic maintenance of registers and digital submission of returns, significantly reducing paperwork and easing the compliance burden for establishments. The inspection framework is aligned with a risk-based and technology-enabled model, offering greater predictability and accountability in regulatory oversight.

Overall, the Draft Code on Wages (Central) Rules, 2025 marks a critical step towards simplifying wage regulation and harmonizing wage-related compliance across sectors. For employers, the draft signals the need to reassess wage structures, payroll processes and compliance systems in anticipation of the Code’s implementation. Once finalized, these rules are expected to play a central role in realizing the wage reform objectives envisaged under the Code on Wages, 2019, while strengthening baseline protections for workers.