• The Act is called "The Code on Wages, 2019".
• It extends to the whole of India.
• It comes into force on dates notified by Central Government (different dates for different sections).
• Fully notified on 21st November 2025 (most sections).

• An employer cannot pay men more than women (or vice versa) for the same or similar work.
• An employer cannot reduce wages of existing workers to comply with this rule.
• No discrimination in recruitment for same type of work either.

If there is any doubt whether two jobs are the "same or similar nature", the appropriate Government will appoint an authority to decide this dispute.

No employer is allowed to pay wages less than the minimum rate fixed by the government. This is an absolute rule – no exceptions for the employer.

• Appropriate government fixes minimum wages for time work (by hour/day/month) or piece work (per unit produced).
• For piece workers, a minimum time-rate is also fixed.
• Government considers: skill level (unskilled/semi-skilled/skilled/highly-skilled), geographical area, and arduousness (hardship of work).

• Method 1 (Committee): Government appoints a committee with employer reps, worker reps, and independent persons (max 1/3 of total).
• Method 2 (Publication): Government publishes proposals publicly, gives at least 2 months for objections/suggestions, then fixes wages.
• Wages come into effect 3 months after notification unless stated otherwise.
• Revision must happen at least once every 5 years.

If an employee works for less than the required hours in a day, he is still entitled to full day's wages – UNLESS the reason for short hours is his own refusal to work (not employer's fault).

If a worker does two types of work (each having different minimum wages), he must be paid the respective minimum wage for each category for the hours worked in that category.

Where a person is paid on piece-rate basis but no minimum piece rate has been fixed (only time rate is fixed), the employer must pay at least the minimum time rate.

• Wages can be paid by: Cash (coins/currency), Cheque, Bank transfer, or Electronic/Digital mode.
• Government can mandate that certain establishments pay wages ONLY by cheque or digital mode.

Wages cannot be deducted except for the following permitted reasons. Total deductions cannot exceed 50% of wages in any wage period.

• Fine can only be imposed for acts/omissions pre-approved by the appropriate Government.
• Notice must be displayed at the workplace specifying these acts.
• Worker must be given a chance to show cause before fine is imposed.
• Maximum fine: 3% of wages in a single wage period.
• No fine on employees below 15 years of age.
• Fine cannot be recovered in installments or after 90 days from date of imposition.
• All fines must be recorded in a register and used for workers' benefit only.

Deduction for absence must be in proportion to the time absent. If 10 or more workers go on a "stay-in strike" without notice, the deduction can include up to 8 days' wages as notice-pay equivalent.

• Deduction cannot exceed the actual loss/damage caused.
• Employee must get opportunity to explain before deduction is made.
• All deductions must be recorded in a register.

Chapter III does not automatically apply to Government establishments – the Government must specifically notify for it to apply to them.

• Gross Profit = Total income of establishment
• Available Surplus = Gross Profit minus deductions (depreciation, tax, etc.)
• Allocable Surplus = 67% of Available Surplus (60% for banking companies)
• Bonus Payable = Based on allocable surplus, between 8.33% and 20% of wages

If an employee has NOT worked all working days in the year, the minimum bonus (if higher than his proportionate share) shall be reduced proportionately.

• Days on which the worker was laid off (with valid reason under law)
• Days on paid leave
• Days absent due to accident or injury at workplace
• Days on maternity leave with wages

If an employer has already paid a customary bonus (like Diwali bonus / puja bonus), or a part-payment of bonus before the due date, that amount will be DEDUCTED from the final annual bonus payable. Employee only gets the balance.

If an employee causes financial loss to the employer due to misconduct, the employer can deduct that loss from the bonus payable for that accounting year only.

• LIC employees
• Seamen (merchant navy)
• Dock workers
• Government department employees
• Red Cross / hospitals / universities / social welfare institutions (non-profit)
• Reserve Bank of India employees
• Certain public sector financial institutions
• Inland water transport on routes through other countries

• Constituted by the Central Government.
• Members: Employer representatives + Equal number of Employee representatives + Independent persons (max 1/3 of total) + 5 State Government representatives.
• 1/3 of all members must be women.
• An independent member is appointed as Chairperson by Central Govt.

• Constituted by each State Government.
• Same composition as CAB: Employers + Workers + Independent members (max 1/3) with 1/3 women.
• Can form sub-committees for specific issues.
• State Govt appoints Chairperson from independent members.

Every employer MUST pay all dues under the Code. If the employer fails, the proprietor/company/firm itself becomes responsible for payment.

• If employee dies before wages are paid → amount goes to the nominated person.
• If no nomination → deposited with a prescribed authority who distributes it.
• Once paid to nominee or deposited, employer's liability ends.

Disputes about bonus eligibility or application of bonus to public sector establishments are treated as "industrial disputes" under the Industrial Disputes Act, 1947 – meaning the full machinery for settlement of industrial disputes becomes available.

Accounts of corporations/companies audited by Comptroller & Auditor General or qualified auditors are presumed to be accurate in proceedings. Employers not being companies may be directed to get their accounts audited if needed.

• Every employer must maintain a Register with details of workers, muster roll, wages.
• Must display a Notice Board showing: wage rates, wage period, payment dates, Inspector's name and address.
• Must issue Wage Slips to every employee.
• Exception: Employer with ≤ 5 persons for agriculture/domestic purpose is exempt but must show proof of payment when asked.

• Appointed by appropriate Government via notification.
• Assigned jurisdiction – either geographical area or specific establishments.
• Deemed to be a Public Servant under Indian Penal Code (Section 21 IPC).

• Government can create a web-based inspection scheme to bring transparency.
• Randomised selection of establishments prevents targeted harassment by inspectors.
• This ensures accountability and reduces corruption in inspection process.

• Court can take up a case only on a complaint filed by: (a) Appropriate Government / authorised officer, (b) An employee, (c) Registered Trade Union, or (d) Inspector-cum-Facilitator.
• No court inferior to Metropolitan Magistrate or Judicial Magistrate of First Class can try offences under this Code.

For fines-only offences (not imprisonment), appropriate Government can appoint an officer (not below Under Secretary level) to hold inquiry and impose penalty – this reduces burden on lower courts.

• If a company commits an offence → Every person in charge and responsible for the company is liable.
• Defence: If that person proves the offence was committed without his knowledge and he exercised due diligence → he is not personally liable.
• If offence committed with consent or connivance of Director/Manager/Secretary → that person is personally liable.

• Offences NOT punishable with imprisonment can be compounded (settled) by paying 50% of maximum fine.
• Application for compounding can be made before or after prosecution starts.
• Repeat offenders (second offence within 5 years from first) CANNOT compound.
• If compounded before prosecution → no prosecution at all.
• If compounded after prosecution → court is informed → person discharged.

No civil court (regular court) can entertain a case for recovery of minimum wages, deductions, discrimination in wages, or bonus if the matter:

• Is already being decided by the authority under Section 45
• Has already been decided by a direction under the Code
• Could have been recovered through the Code's mechanism

No suit or prosecution can be filed against the appropriate Government or its officers for actions done in good faith under this Code.

If any contract or agreement tries to make an employee give up his rights to wages or bonus under this Code, that contract is void and unenforceable.

If any other law, contract, award, or settlement contradicts this Code, the Code's provisions prevail.

Appropriate Government can delegate its powers to subordinate officers or (if Central Govt) to State Governments or their officers.

• If employer is charged, he can name the actual person responsible and ask the court to try that person.
• If proved: (a) employer exercised due diligence AND (b) actual offender did it without employer's knowledge → actual offender is convicted, employer is acquitted.

Money deposited with Government (as security for a contract) is protected from court attachment – except for dues to workers employed on that contract.

Central Government can direct any State Government on carrying out the Code's provisions, and the State must follow those directions.

Nothing in this Code affects the Mahatma Gandhi NREGA or Coal Mines Provident Fund Act – those schemes continue separately.

If any difficulty arises in implementing the Code, Central Government can issue orders to resolve it by Official Gazette – but only within 3 years of Code's commencement. Such orders must be laid before Parliament.

• The following four old Acts are repealed (cancelled): Payment of Wages Act 1936, Minimum Wages Act 1948, Payment of Bonus Act 1965, Equal Remuneration Act 1976.
• All actions taken, notifications issued, or appointments made under old Acts remain valid under this Code (continuity ensured).

This roadmap shows the journey of the law – from the need that created it, through its chapters, to how it is enforced and its impact on workers and employers.