rate                     of                    wages–

The calculation of the rate of wages fixed for the day is proposed to be divided by 8 for fixing the rate of wages for an hour and multiplied by 26 for fixing the rate of wages for a month and in such division and multiplication the factors of one-half and more than one-half is proposed to be rounded as next figure and the factors less than one-half is proposed to be ignored.

(1) For the purposes of sub-section (5) of section 6, the minimum rate of wages shall be fixed on the day basis keeping in view the following criteria*, namely:-

an      equivalent      of      three   adult

(ii)  a net intake of 2700 calories per day per consumption unit;

(iii)    66 meters cloth per year per standard working class family;

(iv)      housing rent expenditure to constitute 10 per cent. of food and clothing expenditure;

(v)        fuel, electricity and other miscellaneous items of expenditure to constitute 20 percent of minimum wage; and

(vi)  expenditure for children education,

rounded as next figure and the factors

Labour Conference (ILC).

i.  Metropolitan area

ii.  Non-metropolitan area

iii.  Rural area

It is further proposed in the Draft Rules that the Central Government shall constitute a technical committee for the purpose of advising the Govt. regarding skill categorization. It is proposed that the categorization will be into 4 categories:

unskilled, semi-skilled, skilled and highly skilled

While advising on the above subject, it is proposed to take into account, the national classification of occupation or national skills qualification frame work or other similar frame work for the time being formulated to identify occupations.

(a) shall primarily take into account the skill of workers required for working under the categories of unskilled, skilled, semi-skilled and highly-skilled or geographical area or     both;         and

(1)   While fixing the minimum rate of wages under section 6, the Central Government shall divide the concern geographical area into three categories, that is to say the metropolitan area, non-metropolitan area and the rural area.

(2)    The Central Government shall constitute a technical committee under

clause (a) of sub-section (1) of section

(c)   the norms of such fixation of minimum rate of wages shall be

(3) The Central Government shall, on the advice of the technical committee referred to in sub-rule (2), categorize the occupations of the employees into four categories that is to say unskilled, semi-skilled, skilled and highly skilled by modifying, deleting or adding any entry in the categorization of such

occupation specified in Schedule E.

8. Procedure for fixing and revising minimum wages

(1) In fixing minimum rates of wages for the first time or in revising minimum rates of wages under this Code, the appropriate Government shall either— (a) appoint as many committees as it considers necessary to hold enquiries    and    recommend   in

respect of such fixation or revision,

(1) The Central Government shall fix floor wage taking into account minimum living standards of a worker in such manner as may be prescribed: Provided that different floor wage may be fixed for different geographical areas.

9(3)    The    Central          Government may,  before fixing  the floor wage

under  sub-section  (1),  obtain the

(1) The Board shall be consulted by the Central Government for the purposes of fixation of basic rate of floor wage under sub-section (1) of section 9 taking into account minimum living standards taking into account an equivalent of three adult consumption units including worker of the family comprising of food, clothing, housing and any other factors considered appropriate        by        the      Central

Government    from    time    to    time.

(2) The advice of the Board obtained in consultation under sub-rule (1) shall be circulated by the Central Government to all State Governments for consultation with them.

12. Manner of consultation with State Governments

the advice of the Board and consult such  State  Governments  as  it thinks

(1) Where the minimum rates of wages have been fixed under this Code,    the                     appropriate Government  may  —  (a)  fix   the

number  of  hours  of  work  which

shall constitute a normal working

(1) The number of hours which shall constitute a normal working day under clause (a) of sub-section (1) of section 13, shall be nine hours.

(2) The working day of an employee

shall be so arranged that inclusive of the intervals of rest, if any, it shall not spread over more than twelve hours on any                                                        day.

The above is not applicable to factories and is subject to

modification for persons employed in agricultural sector.

In addition to the above, the Draft Rules proposes to prescribe conditions for Night Shifts. Where an employee in an employment works on a shift which extends beyond midnight, then:

(a)   a holiday for the whole day (which means a period of twenty- four consecutive hours beginning from the time when his shift ends) shall be provided; and

(b)   the following day in such a case shall be deemed to be the period of twenty-four hours beginning from the time when such shift ends, and the hours after midnight during which such employee was engaged in work shall be counted towards the previous day.

(2) shall, in the case of an employee employed in agricultural employment, be subject to such modifications as may, from time to time, be determined by       the       Central      Government.

be counted towards the previous day.

13.

following  specific  nature of  work:

(1)    shall,    in    relation    to         the

following classes of employees apply,   only  to  such  extent  and

In          case          of          employees-

(a)  engaged in  any emergency which

(a) engaged in any emergency

which    could    not    have              been foreseen or prevented;

(a)    employees engaged in any emergency which could not have been foreseen or prevented;

(b)  employees engaged in work of the nature of preparatory or complementary work which must necessarily be carried on  outside

the limits laid down for the general

(b)   engaged in work of the nature of preparatory or complementary work which must necessarily be carried on outside the limits laid down for the general working in the employment concerned;

(c)   whose employment is essentially intermittent;

(c)         whose employment is essentially intermittent;

(d)  engaged in any work which for technical reasons has to be

(c)  employees whose employment is essentially intermittent;

(d)    employees engaged in any work which for technical reasons has to be completed before the duty is over; and

(e)  employees engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces.

(e) engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces;

the provisions of rules 6, 7 and 8 shall apply  subject  to  the  condition  that –

(i) the spread over of the hours of work of the employee shall not exceed 16

hours in any day; and

(e) engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces.

the provisions with respect to hours of work, weekly day of rest and night shifts will apply subject to the conditions mentioned below:

(i) the spread over of the hours of work  of  the  employee  shall  not

(ii) the actual hours of work excluding the intervals of rest and the periods of inaction during which the employee may be on duty but is not called upon to display either physical activity or sustained attendance shall not exceed 9 hours in any day.

twice the normal rate of wages.

(1) The employer shall pay or cause to be paid wages to the employees, engaged on—

(i)   daily basis, at the end of the shift;

(ii)     weekly basis, on the last working day of the week, that is to

say, before the weekly holiday; (iii)

fortnightly basis, before the end of the second day after the end of the fortnight;

(iv) monthly basis, before the expiry of the seventh day of the succeeding                                            month.

Where the employees are employed in an establishment through contractor, then, the company or firm or association of any other person who is the proprietor of the establishment shall pay to the contractor the amount payable to him or it, as the case may be, before the date of payment of wages so that payment of wages to the

employees shall be made positively in

accordance with the provisions of Section 17.

Explanation- For the purpose of this rule, the expression “firm” shall have the meaning as assigned to it in the Indian Partnership Act, 1932 (9 of

1932).

to the employees is made as per

the    timelines    specified         under Section 17 of the Code.

(4) Where the total deductions authorised  under  sub-section (2)

exceed fifty per cent. of the wages,

Where the total deductions authorized under  sub-section  (2)  of  section  18

exceed  fifty per cent.  of the  wages of

The  same  can  be  recovered by

in that month.

(1) No fine shall be imposed on any employee save in  respect  of

those acts and omissions on his

The        Deputy        Chief               Labour Commissioner               (Central)      having

omissions that can be fined by the

(2)   A notice specifying such acts and omissions shall be exhibited in such manner as may be prescribed, on the premises in which the employment is carried on.

(3)   No fine shall be imposed on any employee until such employee has been given an opportunity of showing cause against the fine or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.

15.  The manner of exhibiting the notice under sub-section (2) of section 19.-

A notice referred to in sub-section (2) of section 19 shall be displayed at the conspicuous place in the premises of the work place in which the employment is carried on, so that every concerned employee would be able easily to read the contents of the notice and a copy of the notice shall be sent to the Inspector-cum-Facilitator having jurisdiction.

16.   The procedure under sub-section

(3)            of            section                 19.-

the  imposition  of  fine  to  the Deputy

Chief Labour Commissioner (Central) referred to in rule 15 who shall, before granting or refusing the approval, give opportunity of being heard to the employee and the employer

concerned.

(8) All fines and all realisations thereof shall be recorded in a register to be kept in such manner and form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the establishment as are approved by the prescribed authority.

21. Deductions for damage or loss.

(3) All such deductions and all realisations thereof shall be recorded in a register to be kept in such form as may be prescribed.

(1)  All fines and all realization thereof referred to in sub-section (8) of section 19 shall be recorded in a register to be kept by the employer in Form – I appended to these rules, electronically or otherwise and the authority referred to in said sub-section (8) shall be the Deputy Chief Labour Commissioner (Central) having jurisdiction.

(2)   All deductions and all realization referred to in sub-section (3) of section 21 shall be recorded in a register to be kept by the employer in Form- I appended to these rules, electronically or otherwise.

(3) Every employer of an establishment to which the Code applies shall maintain  a register under  sub-section

(1)    of    section    50    in    Form    I,

electronically or otherwise.

(1)  A deduction under clause (c) or clause (n) of sub-section (2) of section 18 for damage or loss shall not exceed the amount of the damage or loss caused to the employer by negligence or default of the employee.

(2)  A deduction shall not be made under sub-section (1) until the employee has been given an opportunity of showing cause against the deduction or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.

(3)    All such deductions and all realisations thereof shall be recorded in a register to be kept in

such form as may be prescribed

Any employer desiring to make deduction for damages or loss under sub-section (1) of section 21 from the wages of an employee shall,-

(i)  explain to the employee personally and also in writing the damage or loss of goods expressly entrusted to the employee for custody or for loss of money for which he is required to account and how such damages or loss is directly attributable to the neglect or default of the employee; and

(ii) thereafter, give the employee an opportunity to offer any explanation and deduction for any damages or loss, if made, shall be intimated to  the

employee within fifteen days from the date of such deduction.

(i) explain to the employee personally and also in writing the damage or loss of goods expressly entrusted to the employee for custody or for loss of money for which he is required to account and how such damages or loss is directly attributable to the neglect

or default of the employee; and

(ii) thereafter, give the employee an opportunity to offer any explanation and deduction for any damages or loss, if made, shall be intimated to the employee within fifteen days from the date of such deduction.

(7) For the sixth and seventh accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 36 shall apply subject to the following modifications, namely:—

(i)  for the sixth accounting year set on or set off, as the case may be, shall be made, in the manner as may be prescribed by the Central Government, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years;

(ii)  for the seventh accounting year set on or set off, as the case may be, shall be made, in the manner as may be prescribed by the Central Government, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and

seventh accounting years

For the sixth accounting year, set on or set off, as the case may be, shall be made by the Central Government under clause (i) of subsection (7) of section 26, in the manner illustrated in Schedule A, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth account years.

22.  Calculation of set on or set off for the seventh accounting year.-

For the seventh accounting year, set on or set off, as the case may be, shall be made by the Central Government under clause (ii) of sub-section (7) of section 26, in the manner illustrated in Schedule A, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh account years.

(a) in the case of a banking company, be calculated in the

manner as may be prescribed by the Central Government;

(b) in any other case, be calculated in the manner as may be prescribed by the Central Government.

The gross profits derived by an employer from an establishment in respect of the accounting year shall in the case of banking company, be calculated  in  the manner  specified in

Schedule B.

24. Computation of gross profits under clause        (b)     of                 section         32.-

The gross profits derived by an employer from an establishment in respect of the accounting year in a case other than banking company, be calculated  in  the manner  specified in

Schedule C.

The following sums shall be deducted from the gross profits as prior charges, namely……

(c) such further sums in respect of the employer as may be prescribed by the Central

Government

The further sums as are specified in respect of the employer in Schedule D shall be deducted from the gross profit as prior charges under clause (c) of section 34.

(1) Subject to the other provisions of this Code, all amounts  payable

to  an employee  under  this Code

(1) Where any amounts payable to an employee   under  this  Code  remains

undisbursed     because     either     no

(b) where no such nomination has been made or where for any reasons such amounts cannot be paid to the person so nominated, be deposited with the such authority, as may be prescribed,

(2) The amounts referred to in sub-rule

(1) shall be deposited by the employer with The Deputy Chief Labour Commissioner (Central) having jurisdiction through bank transfer or through a crossed demand draft obtained from any scheduled bank in India drawn in favour of such Deputy Chief Labour Commissioner (Central).

ii.  Such deposit is proposed to be made through bank transfer or through a crossed demand draft obtained from any scheduled bank in India drawn in favour of such Deputy    Chief           Labour Commissioner (Central).

(1) Every employer of an establishment to which this Code applies shall maintain a register containing the details with regard to persons employed, muster roll, wages and such other details in such     manner     as     may     be

prescribed.

(3) Every employer of an establishment to which the Code applies shall maintain  a register under  sub-section

(1) of section 50 in Form I, electronically or otherwise.

(3) Every employer shall issue wage  slips  to  the  employees  in

Every employer shall issue wage slips, electronically or                         otherwise           to                         the

employees   in   Form   V   under  sub-

prescribed.

payment of wages.