Wage Register 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.
Chapters III to VIII of the Code on Wages (Arunachal Pradesh) Rules, 2022 tell an employer how to deduct, fine and recover advances, how bonus is carried forward, what to do with undisbursed dues, which register and wage slip to keep, and how a claim, appeal or composition is made. This article walks through them rule by rule, with the periods and authorities exactly as printed.
The State rules cap recovery of deductions and advances at fifty per cent of the wages in the wage period (rules 11 and 19), and a deduction under the proviso to section 20(2) must be reported to the Inspector-cum-Facilitator within 10 days (rule 16). One register, Form I, records wages, overtime, fines and deductions; Form IV is the employee register and Form V is the wage slip, to be issued on or before payment of wages (rule 51). Undisbursed dues go to the notified authority after six months plus fifteen days (rule 46).
Which rule set this is
This article covers the Code on Wages (Arunachal Pradesh) Rules, 2022, as notified on 19 January 2022 in the Arunachal Pradesh Gazette Extraordinary No. 35 of 24 February 2022. Rule 1(3) says the rules "shall come into force from the date of effect of the Code on Wages, 2019"; the four Labour Codes were brought into force from 21 November 2025. Later amendments and State notifications under these rules should be checked in the State Gazette. Commencement, minimum wage method and hours are in our sibling article on the notification, minimum wages, working hours and weekly rest.
If you want a second pair of eyes on your wage registers and slips, see our payroll compliance audit service.
Deductions, fines and advances (Chapter III, rules 11 to 20)
The Central rules on the same subject are explained in our posts on recovery of deductions and procedure for fines and on recovery of advances and loans. The State text prints these points.
- Carry-forward of excess deductions (rule 11). Where the total deductions authorised under section 18(2) exceed fifty per cent of an employee's wages, the excess is carried forward and recovered from later wage periods in instalments so that recovery in any month does not exceed fifty per cent of that month's wages.
- Authority for fines (rules 12 to 14). The Extra Assistant Commissioner (Judicial), or an equivalent officer with jurisdiction over the place of work, is the authority under section 19(1), and the authority's decision is final. The fine notice under section 19(2) must be displayed at conspicuous places in the work premises so every employee can read it easily, and a copy sent to the Inspector-cum-Facilitator. To obtain approval for a fine, the employer gives written intimation with detailed particulars; the officer must give the employee and the employer a hearing before granting or refusing approval.
- Deductions for absence or other reasons (rule 16). An employer who deducts under the proviso to section 20(2) must intimate the Inspector-cum-Facilitator within 10 days of the deduction, explaining the reason. If the explanation contravenes the Code or the rules, the Inspector-cum-Facilitator initiates action under the Code.
- Damage or loss (rule 17). Before deducting for damage or loss, the employer must explain to the employee personally and in writing the damage or loss of goods entrusted for custody, or of money for which the employee must account, and how it is directly attributable to the employee's neglect or default. The employee must then be given a chance to explain, and any deduction made must be intimated to the employee within fifteen days of the deduction.
- Advances (rule 19). Advances of money after employment begins, and advances of wages not yet earned, are recovered in instalments set by the employer, but the instalments in a wage period must not exceed fifty per cent of the wages in that period, and the particulars are recorded in the Form I register.
- Loans (rule 20). Deductions for house building or other loans approved by the State Government, with interest, follow any direction or circular of the Central Government regulating the extent of such loans and the rate of interest.
The bonus rules (Chapter IV, rules 21 to 27)
The bonus chapter is technical and mostly points to Schedules A to D.
| Rule | Subject | What it prints |
|---|---|---|
| 21 | Set on or set off, sixth accounting year | As illustrated in Schedule A, taking the fifth and sixth years' excess or deficiency |
| 22 | Seventh accounting year | As illustrated in Schedule A, taking the fifth, sixth and seventh years |
| 23 | Gross profits, banking company | Calculated as specified in Schedule B |
| 24 | Gross profits, other cases | Calculated as specified in Schedule C |
| 25 | Further sums as prior charges | Those specified in Schedule D |
| 26 | Carry forward of excess allocable surplus | Subject to a limit of twenty per cent of total salary or wage in the year; set on up to and including the fourth accounting year |
| 27 | Carry forward of deficiency of minimum bonus | Set off in the succeeding year, and so on up to and including the fourth accounting year |
Read this chapter together with Schedules A to D of the State rules, which carry the illustrations and the method of computing gross profits.
The State Advisory Board (Chapter V, rules 28 to 44)
This is relevant to employers mainly as background. The Board has six employer representatives, six employee representatives and independent persons (the Chairperson, two Members of the Legislative Assembly and three members experienced in wages or labour issues). Independent members may not exceed one-third and one-third of the members are to be women (rule 28). A member's term is five years (rule 38), a member who misses three consecutive meetings without prior intimation ceases to be a member (rule 43), and a notice of a meeting is sent at least fifteen days ahead, or seven days for an emergent meeting (rule 31).
Undisbursed dues and claims (Chapter VI, rules 45 to 47)
Our Central posts on nomination and payment of undisbursed dues on death give the Central position. In Arunachal Pradesh:
- Dues after death or unknown whereabouts (rule 45). If the amount could not be paid to the nominee within three months of becoming payable, the employer deposits it with the authority appointed or notified by the State Government, who disburses it to the nominee after ascertaining identity within two months of the deposit.
- Other undisbursed dues (rule 46). If no nomination exists, or the amount could not be paid to the nominee within six months of becoming payable, the employer deposits it with that authority before the expiry of the fifteenth day after the last day of the six months. Deposit is by bank transfer or a crossed demand draft from a scheduled bank in India, drawn in favour of the Labour Commissioner.
- Handling by the authority (rule 47). The sum is invested in State Government securities or placed in a fixed deposit in a scheduled bank. A notice must be exhibited for at least fifteen days on the notice board and published in two newspapers circulated in the area in the language commonly understood. The authority releases the amount after hearing the claimant. If unclaimed for seven years, it is dealt with as the State Government directs.
Registers, wage slip, claims and composition (Chapter VII, rules 48 to 53)
| Obligation | Rule | Form | Time or authority as printed |
|---|---|---|---|
| Register of fines and realisations (section 19(8)) | 50(1) | Form I, electronically or otherwise | Labour Commissioner having jurisdiction is the authority |
| Register of deductions for damage or loss (section 21(3)) | 50(2) | Form I | Kept by the employer |
| Registers under section 50(1) | 50(3) | Forms I and IV | Electronically or otherwise |
| Wage slip | 51 | Form V | On or before payment of wages, electronically or otherwise |
| Single application of claim (section 45(5)) | 48 | Form II | Before the authority under section 45(1) |
| Appeal | 49 | Form III | To the appellate authority having jurisdiction |
| Composition of offence | 53 | Form VI | To the Extra Assistant Commissioner (Judicial) or equivalent officer |
Form I is headed "Register of Wages, Overtime, Fine, Deduction for Damage and Loss". Form IV is the employee register and asks for the establishment's Labour Identification Number (LIN). Our Central posts on registers and wage slip and on the wage and attendance register forms show the Central versions; the State forms are numbered I to VI.
Enquiry into offences (rule 52). A complaint may be filed by an officer authorised by the State Government, an aggrieved employee, a registered trade union or an Inspector-cum-Facilitator. If the officer thinks an offence has been committed, summons issue; a guilty plea leads to penalty under the Code; otherwise evidence is taken on oath with cross-examination, and the complaint is decided.
Composition (rule 53). The notified officer checks that the offence is compoundable under the Code and, if the accused agrees, compromises it "for a sum of fifty per cent of the maximum fine provided for such offence under the Code", payable within the time specified in the composition order. Where composition follows a prosecution, a copy of the order goes to the officer under section 53(1). The Code's penalty provisions apply to the rest; see the Central post on composition of offences.
Miscellaneous (Chapter VIII, rules 54 to 57)
- Contractor employees (rules 54 and 55). Where employees are employed through a contractor, the proprietor of the establishment must pay the contractor the amount due before the date of payment of wages, so that wages are paid in accordance with section 17. If a contractor fails to pay minimum bonus, the principal pays it on written information from the employees or their registered trade union and after confirming the failure.
- Inspection scheme (rule 56). The Labour Commissioner formulates an inspection scheme, with State Government approval, specifying a minimum number of inspections for each Inspector-cum-Facilitator and establishment.
A worked example
Ngomdir Hardware, an invented firm in Itanagar, wants to recover a wage advance of a large amount from a storekeeper. Under rule 19 it fixes instalments so that no instalment total in a wage period exceeds fifty per cent of that period's wages, and it records each recovery in Form I. When the storekeeper later leaves a sum unpaid at death, the dues that cannot reach a nominee within three months are deposited with the notified authority, as rule 45 provides.
Common lapses
- Deducting more than fifty per cent in a month without carrying the excess forward.
- Not reporting a section 20(2) deduction to the Inspector-cum-Facilitator within 10 days.
- Issuing the wage slip after payment instead of on or before it.
- Keeping separate informal registers instead of Form I and Form IV.
- Paying undisbursed dues to the Labour Office late, after the fifteenth day.
Need help with registers and slips?
Registers, wage slips and undisbursed-dues deposits are where wage audits usually find gaps. Our payroll compliance audit team can check your Form I, Form IV and Form V records against these rules.
Key takeaways
- Recovery of deductions and of advances is capped at fifty per cent of wages in the wage period or month.
- Report section 20(2) deductions to the Inspector-cum-Facilitator within 10 days and give damage-or-loss explanations in writing.
- Bonus carry-forward is capped at twenty per cent of total salary or wage and runs to the fourth accounting year, as Schedules A to D illustrate.
- Keep Form I and Form IV, and issue Form V on or before payment of wages.
- Composition is at fifty per cent of the maximum fine, on an application in Form VI.
Read next
- Code on Wages (Arunachal Pradesh) Rules, 2022: minimum wages, working hours and weekly rest
- Industrial Relation (Arunachal Pradesh) Rules, 2021: Works Committee, trade unions and standing orders
- Wage slip and registers under the Central Code on Wages Rules, 2026
- Undisbursed dues under the Central Code on Wages Rules, 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.