On 28 April 2026, the Government of Maharashtra released the Draft Maharashtra Code on Wages Rules, 2026, with the objective of simplifying, standardising, and strengthening wage-related compliance, while improving worker protection and administrative efficiency.
The draft rules have been released for public feedback within 45 days from the date of publication.
Read more: All you need to know about State-wise implementation of Labour Codes
Key Highlights:
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The Rules are issued under the Code on Wages, 2019.
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The core objectives include:
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Establishing transparent and uniform wage-fixation principles
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Simplifying wage payment and deduction procedures
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Strengthening contract and gig worker protections
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Digitising records, returns, and compliance
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Enhancing gender representation and worker participation in wage governance.
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Rule 3 introduces a scientific formula for minimum wage fixation, based on a standard working-class family consisting of:
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One earning worker
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Spouse
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Two children
Note: Two children to be counted as equivalent to one adult consumption unit, making a total of three consumption units for the family
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The minimum wage calculation framework under Rule 3 takes into account:
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2,700 calories per adult per day
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66 metres of clothing per year
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10% of food and clothing cost for housing rent
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20% for fuel and utilities
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25% for education, healthcare, recreation, and contingencies
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Daily wages are converted into hourly wages by dividing by eight and monthly wages by multiplying by twenty-six, subject to prescribed rounding rules for uniformity.
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Jobs are categorised into four skill levels:
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Unskilled
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Semi-Skilled
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Skilled
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Highly Skilled
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Under Rule 4, the State Government may revise occupational classifications using advice from a Technical Committee, considering hazardous work, underground work, and emerging job roles. This aligns wages more closely with skill, experience, and complexity of work.
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Rule 5 mandates biannual revision of Variable Dearness Allowance (VDA) to be undertaken before 1 April and before 1 October each year.
Also Read: Govt. Revises Variable Dearness Allowance Rates, Effective 1 April 2026
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Such revisions are linked to the Consumer Price Index for Industrial Workers, ensuring protection of wages against inflation.
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The Rules provide for:
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A clearly defined normal working day
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One paid weekly rest day, usually Sunday
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Advance notice for any change in rest days
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Overtime and special provisions for shift workers, emergency work, and piece-rate employees
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Rules 8 and 9 clarify how days are counted for night shifts and rest day substitutions.
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The wage period is fixed as monthly, and total deductions from wages are capped at fifty per cent in any wage period.
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Any excess deductions are required to be carried forward, subject to the same statutory ceiling.
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Under Rule 16, employers are required to inform the Inspector-cum-Facilitator within ten days of making any deduction from wages.
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Rule 17 permits deductions for loss or damage only after issuance of written notice to the employee and providing an opportunity to be heard.
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Rule 20 provides for the constitution of a State Advisory Board comprising twelve employer representatives, twelve worker representatives, and independent members such as experts and legislators.
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To ensure balanced representation, at least one-third of the members must be women, and independent members cannot exceed one-third of the total strength of the Board.
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The State Advisory Board functions as an advisory body to the Government on matters relating to minimum wages, skill classification, and working conditions.
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Digitisation is promoted through the mandatory electronic maintenance of registers relating to employees, wages, and attendance, along with the issuance of wage slips on or before payday.
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Rule 43 requires preservation of records for five years, while Rule 49 mandates electronic filing of annual returns, with copies furnished to the relevant Central labour authorities.
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The Rules prescribe Forms I to IX to standardise records relating to employees, wages, attendance, claims, appeals, nominations, and statutory compliance.
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Workers are permitted to file single-window claims for unpaid wages, and employers are required to deposit the disputed amount prior to filing an appeal.
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Rule 46 allows certain offences to be compounded upon payment of up to fifty per cent of the maximum penalty, facilitating streamlined enforcement.
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In cases where wages remain unpaid due to the death of an employee or where the employee is untraceable:
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Amounts are deposited with the Assistant Commissioner of Labour
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Invested securely until claimed
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Transferred to the Maharashtra Labour Welfare Board after 7 years if unclaimed
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The draft rules propose to supersede the Minimum Wages Rules, 1963 and the Payment of Wages Rules, 1963, consolidating wage regulation under a unified statutory framework.
Read more: Draft Maharashtra Industrial Relations Rules, 2026: Key Highlights, Aims & Major Changes
[Draft Maharashtra Code on Wages Rules, 2026, published on 28-4-2026]