Andhra Pradesh Rules 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.
Rules 10 to 19 of the Andhra Pradesh wage rules set the procedure an employer must follow before touching an employee's wages: who pays the contractor's workers, how fines are approved and notified, the seven-day show-cause step, and how advances and loans are recovered. The central point is that every deduction has a notice and a reply period built in.
Review your deduction practice with our payroll compliance audit service if you run payroll for Andhra Pradesh establishments.
The rules are the Code on Wages (Andhra Pradesh) Rules, 2026, as notified by G.O.Rt.No.124 dated 29 June 2026. For fines, absence deductions and deductions for damage or loss, the employer must give the employee seven days to show cause; if no reply comes, the deduction is made and intimated within fifteen days (rules 15 to 17). The Deputy Commissioner of Labour having jurisdiction approves acts and omissions for fines (rule 13). Authorised deductions above fifty per cent of wages are carried forward (rule 12).
Notification and commencement
The rules are the Code on Wages (Andhra Pradesh) Rules, 2026, as notified by G.O.Rt.No.124 dated 29 June 2026. Later amendments and State notifications under these rules should be checked in the State Gazette. Under rule 1(3) the rules come into force on the date of their publication in the Official Gazette; the Labour Codes were brought into force from 21 November 2025. The rest of the wage rules are covered in our article on working hours and rest days.
Who pays the wages of contractor's employees (rule 10)
Where employees are employed in an establishment through a contractor, the company, firm, association or other person who is the proprietor of the establishment "shall pay to the contractor, the amount payable in respect of the wages of employees in accordance with the provisions of the Code". "Firm" has the meaning given in the Indian Partnership Act, 1932. The rule is about the amount the principal pays across; it does not shift the Code's responsibility for dues.
Part-time work (rule 11)
An employee is not entitled to wages for a full normal working day under section 10 of the Code if he agreed to work on a part-time basis under the terms of employment, or is not entitled to such wages under any other labour law.
The fifty per cent cap (rule 12)
Under section 18(4) of the Code, where total authorised deductions exceed fifty per cent of an employee's wages, the excess is carried forward and recovered from the wages of succeeding wage periods "in instalments so that the recovery in any month shall not exceed the fifty per cent of the wages of the employee in that month". The Central rule on this is rules 13 to 16 of the Central Rules; the Andhra Pradesh text is shorter.
Fines: approval, notice and procedure (rules 13 to 15)
- Approval of acts and omissions (rule 13). The Deputy Commissioner of Labour having jurisdiction over the place of work of the employee concerned is the authority for approving acts and omissions under section 19(1) of the Code.
- Notice (rule 14). The notice under section 19(2) is displayed in physical form or electronically in Hindi, English and local language at a conspicuous place in the work premises. A copy is sent electronically or by speed post to the Inspector-cum-Facilitator having jurisdiction.
- Show cause (rule 15(1)). Before a fine, the employer gives intimation, electronically or in writing, specifying the particulars of the acts and omissions warranting a fine, for showing cause within seven days.
- Imposition (rule 15(2) and (3)). On establishment of charges the fine is imposed. Where no reply is received within the scheduled period, the fine is imposed and "intimated to the employee within fifteen days of the imposition".
Deductions for absence from duty (rule 16)
Where an employer intends a deduction under the proviso to section 20(2) of the Code, it intimates the employee, electronically or in writing, of the intention and seeks a reply within seven days. On establishment of the charges the deduction is made as section 18(3) provides. If no reply arrives in seven days the employer makes the deduction and intimates the employee within fifteen days of the date of the deduction. See also rules 17 and 18 of the Central Rules.
Deductions for damage or loss (rule 17)
The employer intending a deduction under section 21(1) gives the employee an opportunity to submit an explanation within seven days, "showing cause, the value of the damage caused or loss of goods expressly entrusted to the employee". On establishment of the charges the deduction is made in accordance with section 18(3). If there is no reply within seven days, the deduction is made and intimated within fifteen days of the date of deduction.
Advances and loans (rules 18 and 19)
- Advances (rule 18). Recovery of money advanced after employment begins (section 23(b)) or of wages not already earned (section 23(c)) is made in instalments "determined by the employer", so that the instalments in any wage period do not exceed fifty per cent of the employee's wages, subject to the ceiling in rule 12. The particulars of recovery are recorded in the register maintained in Form-IV.
- Loans (rule 19). Deductions for recovery of loans and interest follow "extant instructions or guidelines of the State Government" regulating the extent to which loans may be granted and the rate of interest payable. The rule prints no figure. Where the State guidelines are not at hand, the loan terms should not be fixed on assumption. See rules 19 and 20 of the Central Rules.
At a glance
| Subject | Rule | Period or authority as printed | Record |
|---|---|---|---|
| Excess deductions | 12 | Carry forward; not above fifty per cent in a month | Wage records |
| Approval of acts and omissions for fines | 13 | Deputy Commissioner of Labour with jurisdiction | Approval |
| Fine notice | 14 | Hindi, English and local language; copy to Inspector-cum-Facilitator | Notice display |
| Fine show-cause | 15 | Seven days; intimation of fine within fifteen days if no reply | Written or electronic intimation |
| Absence deduction | 16 | Seven days to reply; intimation within fifteen days | Written or electronic intimation |
| Damage or loss | 17 | Seven days to explain; intimation within fifteen days | Written or electronic intimation |
| Advance recovery | 18 | Instalments within fifty per cent | Form-IV |
A worked example
Krishna Lamps, an invented manufacturer in Vijayawada, finds that a machine operator damaged a tool expressly entrusted to him. The HR manager sends a written intimation stating the value of the damage and seeking an explanation within seven days. The operator does not reply. The firm makes the deduction as section 18(3) requires, keeps within the fifty per cent ceiling, and sends the operator an intimation within fifteen days of the deduction. For a separate advance given earlier, the firm records each instalment in Form-IV.
Common lapses
- Deducting first and asking for the explanation later.
- Displaying the fine notice in English only.
- Forgetting the fifteen-day intimation after a deduction made on silence.
- Exceeding the fifty per cent ceiling when an advance recovery and a damage deduction fall in the same month.
- Failing to record advance instalments in Form-IV.
Need help with deduction procedure?
If your payroll system deducts by default, now is the time to build the notice, reply and intimation steps into it. Our payroll compliance audit team can review your deduction policy and the supporting records.
Key takeaways
- Seven days to show cause before fines, absence deductions and deductions for damage or loss.
- Intimation within fifteen days where no reply is received.
- The Deputy Commissioner of Labour approves acts and omissions for fines.
- Fine notices go up in Hindi, English and the local language, with a copy to the Inspector-cum-Facilitator.
- Advances are recovered within fifty per cent of wages and recorded in Form-IV.
Read next
- Code on Wages (Andhra Pradesh) Rules, 2026: working hours, weekly rest, night shifts and overtime
- Code on Wages (Andhra Pradesh) Rules, 2026: undisbursed dues, claims, appeals and State Advisory Board
- Rules 13 to 16 of the Code on Wages Central Rules, 2026: recovery of deductions and fines
- Section 18 of the Code on Wages, 2019: deductions which may be made from wages
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.