Code on Wages Andhra explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Andhra Pradesh has made its own rules under section 67 of the Code on Wages, 2019. They tell an employer in the State how the minimum rate of wages is expressed and converted, how often variable dearness allowance is revised, and which State rules of the old wage laws no longer apply.
This article covers the notification, commencement, definitions and the first chapter of the wage-calculation rules. Hours, payment, claims and registers are in the sibling articles linked below. For a wider review of your State obligations, see our labour law compliance service.
The Code on Wages (Andhra Pradesh) Rules, 2026 came by a Government Order marked "Final Notification", after a draft published on 13 March 2026. They supersede the Andhra Pradesh Payment of Wages Rules, 1937 and the Andhra Pradesh Minimum Wages Rules, 1960, except for things done or omitted before supersession. Under rule 3 the minimum rate of wages is fixed by the day, with an hourly rate by dividing by eight and a monthly rate by multiplying by twenty-six. The rates themselves are set separately by the State Government.
The notification and the commencement clause
The rules are the Code on Wages (Andhra Pradesh) Rules, 2026, as notified by G.O.Rt.No.124 dated 29 June 2026, issued by the Labour, Factories, Boilers and Insurance Medical Services (Lab.II) Department. The order says the notification shall be published in the Extraordinary issue of the Andhra Pradesh Gazette dated 29.06.2026. Later amendments and State notifications under these rules should be checked in the State Gazette.
Rule 1(3) reads: "They shall come into force on the date of their publication in the Official Gazette." Rule 1(2) says they extend to the whole of Andhra Pradesh. The Code itself, with the other three Labour Codes, was brought into force from 21 November 2025; our post on sections 1 and 69 of the Code on Wages explains that commencement and the repeal of the four older wage laws.
How the rules came about
The order recites the steps in sequence: the Code on Wages published in the Gazette of India on 8 August 2019; an earlier draft of State rules (G.O.Rt.No.202 dated 13-6-2022); the appointed day of 21-11-2025 notified by the Central Government; the draft Central rules of 30-12-2025; and the State draft of 13 March 2026. The draft invited objections within forty-five days from the date copies of the Gazette were made available to the public. The order states that objections and suggestions received were duly considered by the State Government.
What the rules supersede
The preamble supersedes two sets of State rules: the Andhra Pradesh Payment of Wages Rules, 1937 (made under the Payment of Wages Act, 1936) and the Andhra Pradesh Minimum Wages Rules, 1960 (made under the Minimum Wages Act, 1948). The saving is in the words "except as respects of things done or omitted to be done before such supersession". An employer who paid wages, imposed fines or made deductions under the earlier rules before the new rules began is therefore not exposed to the new rules for that past conduct.
Definitions an employer should know
Rule 2 defines the terms the later chapters use. Several matter in practice:
- "Electronically" covers information submitted by email or maintained or displayed on the designated portal, mobile application or website, or by digital payment in any mode.
- "Geographical area" means the areas notified by the State Government from time to time.
- "Highly skilled", "skilled", "semi-skilled" and "unskilled occupation" are each defined, in terms of competence, training and the responsibility for judgment or decision.
- "Day" means a period of twenty-four hours beginning at midnight.
- "Normal rate of wage" means wage as defined in clause (y) of section 2 of the Code.
- "Inspector-cum-Facilitator" means a person appointed by the State Government under section 51(1) of the Code.
Words not defined in the rules carry their meaning in the Code (rule 2(2)).
Rule 3: how the minimum rate of wages is calculated
The Central position on the manner of calculating the minimum rate is in rule 3 of the Code on Wages Central Rules, 2026. The Andhra Pradesh rule is built on three points.
- Day basis. For section 6(5) of the Code, the minimum rate of wages is fixed by the day, "keeping in view the criteria which shall be separately specified by the State Government by special or general order". The proviso says the State Government shall not fix the minimum wages of State Government employees under the Code.
- Hourly and monthly rates. Where the day rate is fixed, the amount is divided by eight for the hourly rate and multiplied by twenty-six for the monthly rate. In the division and multiplication, a factor of one-half or more is rounded to the next figure and a factor less than one-half is ignored.
- Less than a six-day week. Where the working week is shorter than six days, the hourly rate so calculated is used to derive the minimum wages for the day.
The rules give the method, not the rates. The criteria and the amounts come from separate State orders, so a payroll team should take the rate from the order applicable to the scheduled employment and not from these rules. Our general note on minimum wages in Andhra Pradesh gives the background.
Rule 4: twice-yearly revision of variable dearness allowance
Rule 4 requires the cost of living allowance and the cash value of the concession in respect of essential commodities at concession rate to be computed "once before 1st April and then before 1st October in every year". The computation revises the variable dearness allowance payable on the minimum wages, and it takes the Average Consumer Price Index Number for Industrial Workers published by the Labour Bureau, Ministry of Labour and Employment, Government of India.
At a glance
| Subject | Rule | What the Andhra Pradesh text prints |
|---|---|---|
| Short title and extent | 1(1), 1(2) | Code on Wages (Andhra Pradesh) Rules, 2026; whole of Andhra Pradesh |
| Commencement | 1(3) | Date of publication in the Official Gazette |
| Day, hour, month rates | 3(2) | Day rate divided by eight (hour), multiplied by twenty-six (month) |
| Fixing basis | 3(1) | By the day, on criteria separately specified by the State Government |
| VDA revision | 4 | Computed before 1 April and before 1 October every year |
| Normal working day (daily wage period) | 5(1) | Eight hours |
| Weekly hours cap (other wage periods) | 5(2) | Not to exceed forty-eight hours |
Rule 5 and the rules after it are covered in our article on working hours, weekly rest, night shifts and overtime.
A worked example
Sri Venkata Packaging, an invented unit in Visakhapatnam, pays a packer on a daily basis. The State order in force for that employment sets a day rate, which the payroll head reads from the order itself. The hourly rate under rule 3(2) is the day rate divided by eight, and the monthly rate is the day rate multiplied by twenty-six, with halves rounded up and smaller fractions dropped. If the unit moves the packer to a five-day week, rule 3(3) requires the hourly rate so worked out to be used to derive the day's minimum wages. The unit's payroll head records the order number she used, and revisits the VDA computation before 1 April and 1 October each year.
Common lapses
- Taking a minimum rate from an old schedule made under the Minimum Wages Act, 1948 without checking the State order now applicable.
- Rounding the hourly or monthly figure in the employer's favour for every fraction, instead of applying the half-and-above rule.
- Letting the VDA revision slip to the middle of the half-year.
- Treating the Payment of Wages Rules, 1937 as the source for forms and registers after the new rules began.
Need help with Andhra Pradesh wage compliance?
If your payroll is moving from the 1937 and 1960 rules to the new Code framework, a review of the wage structure, the rate order you apply and the VDA schedule is a sensible first step. Our team can walk you through it as part of labour law compliance support.
Key takeaways
- The rules are made under section 67 of the Code on Wages and supersede the Andhra Pradesh Payment of Wages Rules, 1937 and Minimum Wages Rules, 1960, except for earlier acts.
- They come into force on the date of publication in the Official Gazette (rule 1(3)).
- The minimum rate is fixed by the day; hour = day divided by eight; month = day multiplied by twenty-six.
- VDA is revised after computation before 1 April and before 1 October each year.
- The rates are not in the rules: they come from separate State orders.
Read next
- Code on Wages (Andhra Pradesh) Rules, 2026: working hours, weekly rest, night shifts and overtime
- Code on Wages (Andhra Pradesh) Rules, 2026: registers, wage slip, forms and compounding
- Rules 1 and 2 of the Code on Wages Central Rules, 2026: short title, commencement and definitions
- Minimum Wages in Andhra Pradesh (2026)
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.