{"id":382942,"date":"2026-05-01T13:30:14","date_gmt":"2026-05-01T08:00:14","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=382942"},"modified":"2026-05-01T14:45:11","modified_gmt":"2026-05-01T09:15:11","slug":"draft-maharashtra-code-on-wages-rules-notified","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/05\/01\/draft-maharashtra-code-on-wages-rules-notified\/","title":{"rendered":"Maharashtra Notifies Draft Code on Wages Rules, 2026 for Public Consultation: Key Highlights"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">On 28 April 2026, the Government of Maharashtra released the <span style=\"font-weight: bold;\">Draft Maharashtra Code on Wages Rules, 2026<\/span>, with the objective of simplifying, standardising, and strengthening wage-related compliance, while improving worker protection and administrative efficiency.<br \/>The draft rules have been released for public feedback within 45 days from the date of publication.<\/p>\n<p style=\"margin-bottom: 3%;\"><b>Read more:<\/b> <a href=\"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/12\/all-you-need-to-know-about-statewise-implementation-of-labour-codes\/\" target=\"_blank\">All you need to know about State-wise implementation of Labour Codes<\/a><\/p>\n<h2>Key Highlights:<\/h2>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p>The Rules are issued under the <span style=\"font-weight: bold;\"><a href=\"http:\/\/www.scconline.com\/DocumentLink\/07N7bi0g\" target=\"_blank\">Code on Wages, 2019<\/a>.<\/span><\/p>\n<\/li>\n<li>\n<p>The core objectives include:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Establishing transparent and uniform wage-fixation principles<\/p>\n<\/li>\n<li>\n<p>Simplifying wage payment and deduction procedures<\/p>\n<\/li>\n<li>\n<p>Strengthening contract and gig worker protections<\/p>\n<\/li>\n<li>\n<p>Digitising records, returns, and compliance<\/p>\n<\/li>\n<li>\n<p>Enhancing gender representation and worker participation in wage governance.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Rule 3<\/span> introduces a scientific formula for minimum wage fixation, based on a standard working-class family consisting of:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>One earning worker<\/p>\n<\/li>\n<li>\n<p>Spouse<\/p>\n<\/li>\n<li>\n<p>Two children<\/p>\n<\/li>\n<\/ul>\n<p>Note: Two children to be counted as equivalent to one adult consumption unit, making a total of three consumption units for the family<\/p>\n<\/li>\n<li>\n<p>The minimum wage calculation framework under Rule 3 takes into account:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>2,700 calories per adult per day<\/p>\n<\/li>\n<li>\n<p>66 metres of clothing per year<\/p>\n<\/li>\n<li>\n<p>10% of food and clothing cost for housing rent<\/p>\n<\/li>\n<li>\n<p>20% for fuel and utilities<\/p>\n<\/li>\n<li>\n<p>25% for education, healthcare, recreation, and contingencies<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>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.<\/p>\n<\/li>\n<li>\n<p>Jobs are categorised into four skill levels:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Unskilled<\/p>\n<\/li>\n<li>\n<p>Semi-Skilled<\/p>\n<\/li>\n<li>\n<p>Skilled<\/p>\n<\/li>\n<li>\n<p>Highly Skilled<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>Under <span style=\"font-weight: bold;\">Rule 4<\/span>, 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.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Rule 5<\/span> mandates biannual revision of Variable Dearness Allowance (VDA) to be undertaken before <span style=\"font-weight: bold;\">1 April and before 1 October each year<\/span>.<\/p>\n<p style=\"font-weight: bold;\"><b>Also Read:<\/b> <a href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/04\/08\/revised-variable-dearness-allowance-rates-applicable-from-1-april\/\" target=\"_blank\">Govt. Revises Variable Dearness Allowance Rates, Effective 1 April 2026<\/a><\/p>\n<\/li>\n<li>\n<p>Such revisions are linked to the Consumer Price Index for Industrial Workers, ensuring protection of wages against inflation.<\/p>\n<\/li>\n<li>\n<p>The Rules provide for:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>A clearly defined <span style=\"font-weight: bold;\">normal working day<\/span><\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">One paid weekly rest day<\/span>, usually Sunday<\/p>\n<\/li>\n<li>\n<p>Advance notice for any change in rest days<\/p>\n<\/li>\n<li>\n<p>Overtime and special provisions for <span style=\"font-weight: bold;\">shift workers<\/span>, emergency work, and piece-rate employees<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>Rules 8 and 9 clarify how days are counted for night shifts and rest day substitutions.<\/p>\n<\/li>\n<li>\n<p>The wage period is fixed as <span style=\"font-weight: bold;\">monthly<\/span>, and total deductions from wages are <span style=\"font-weight: bold;\">capped at fifty per cent<\/span> in any wage period.<\/p>\n<\/li>\n<li>\n<p>Any excess deductions are required to be <span style=\"font-weight: bold;\">carried forward<\/span>, subject to the same statutory ceiling.<\/p>\n<\/li>\n<li>\n<p>Under Rule 16, employers are required to <span style=\"font-weight: bold;\">inform the Inspector-cum-Facilitator within ten days<\/span> of making any deduction from wages.<\/p>\n<\/li>\n<li>\n<p>Rule 17 permits deductions for loss or damage only after issuance of <span style=\"font-weight: bold;\">written notice to the employee<\/span> and providing an <span style=\"font-weight: bold;\">opportunity to be heard<\/span>.<\/p>\n<\/li>\n<li>\n<p>Rule 20 provides for the constitution of a <span style=\"font-weight: bold;\">State Advisory Board<\/span> comprising <span style=\"font-weight: bold;\">twelve employer representatives, twelve worker representatives, and independent members such as experts and legislators<\/span>.<\/p>\n<\/li>\n<li>\n<p>To ensure balanced representation, <span style=\"font-weight: bold;\">at least one-third of the members must be women<\/span>, and <span style=\"font-weight: bold;\">independent members cannot exceed one-third of the total strength<\/span> of the Board.<\/p>\n<\/li>\n<li>\n<p>The State Advisory Board functions as an advisory body to the Government on matters relating to <span style=\"font-weight: bold;\">minimum wages, skill classification, and working conditions<\/span>.<\/p>\n<\/li>\n<li>\n<p>Digitisation is promoted through the <span style=\"font-weight: bold;\">mandatory electronic maintenance of registers<\/span> relating to employees, wages, and attendance, along with the <span style=\"font-weight: bold;\">issuance of wage slips on or before payday<\/span>.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Rule 43<\/span> requires preservation of records for <span style=\"font-weight: bold;\">five years<\/span>, while Rule 49 mandates <span style=\"font-weight: bold;\">electronic filing of annual returns<\/span>, with copies furnished to the relevant Central labour authorities.<\/p>\n<\/li>\n<li>\n<p>The Rules prescribe <span style=\"font-weight: bold;\">Forms I to IX<\/span> to standardise records relating to employees, wages, attendance, claims, appeals, nominations, and statutory compliance.<\/p>\n<\/li>\n<li>\n<p>Workers are permitted to file <span style=\"font-weight: bold;\">single-window claims<\/span> for unpaid wages, and employers are required to <span style=\"font-weight: bold;\">deposit the disputed amount prior to filing an appeal<\/span>.<\/p>\n<\/li>\n<li>\n<p>Rule 46 allows certain offences to be <span style=\"font-weight: bold;\">compounded upon payment of up to fifty per cent of the maximum penalty<\/span>, facilitating streamlined enforcement.<\/p>\n<\/li>\n<li>\n<p>In cases where wages remain unpaid due to the death of an employee or where the employee is untraceable:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Amounts are deposited with the <span style=\"font-weight: bold;\">Assistant Commissioner of Labour<\/span><\/p>\n<\/li>\n<li>\n<p>Invested securely until claimed<\/p>\n<\/li>\n<li>\n<p>Transferred to the <span style=\"font-weight: bold;\">Maharashtra Labour Welfare Board<\/span> after 7 years if unclaimed<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">The draft rules propose to supersede the<span style=\"font-weight: bold;\"> Minimum Wages Rules, 1963<\/span> and the<span style=\"font-weight: bold;\"> Payment of Wages Rules, 1963<\/span>, consolidating wage regulation under a unified statutory framework.<\/p>\n<\/li>\n<\/ol>\n<p style=\"margin-bottom: 3%;\"><b>Also Read:<\/b> <a href=\"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/29\/india-four-labour-codes-overview-explained-scctimes\/\" target=\"_blank\">A Complete Guide to Four Labour Codes: Key Reforms, Compliance Checklists &amp; Impact on India&#8217;s Workforce<\/a><\/p>\n<p style=\"margin-bottom: 3%;\"><b>Read more:<\/b> <a href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/04\/30\/draft-maharashtra-industrial-relations-rules-2026-key-highlights\/\" target=\"_blank\">Draft Maharashtra Industrial Relations Rules, 2026: Key Highlights, Aims &amp; Major Changes<\/a><\/p>\n<p style=\"margin-bottom: 3%;\">[Draft Maharashtra Code on Wages Rules, 2026, published on 28-4-2026]<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">Maharashtra Government has notified the Draft Code on Wages Rules, 2026 for public consultation, aiming to bring uniformity in wage fixation, payment mechanisms, and worker protections.<\/p>\n","protected":false},"author":67525,"featured_media":382959,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,15],"tags":[93153,103415,103408,103409,103410,103413,81120,102024,103411,103414,103412],"class_list":["post-382942","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-rules_regulations","tag-code-on-wages-2019","tag-digitisation-of-labour-compliance","tag-draft-maharashtra-code-on-wages-rules-2026","tag-maharashtra-labour-laws","tag-minimum-wage-fixation","tag-skill-based-wages","tag-state-advisory-board","tag-variable-dearness-allowance","tag-wage-compliance","tag-wage-deductions","tag-worker-protections"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - 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