Code on Wages Bihar 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.
The Code on Wages (Bihar) Rules, 2026 are the rules by which Bihar applies the Code on Wages, 2019 to the establishments for which the State Government is the appropriate Government. This article covers the notification, the commencement clause, the two earlier sets of rules the notification supersedes, the area and skill norms, and the method the rules print for working out the minimum rate of wages.
The rules are the Code on Wages (Bihar) Rules, 2026, as notified on 30 June 2026 and published in the Bihar Gazette (Extraordinary) No. Patna 696 of 1 July 2026. Rule 1(3) says they come into force from the date of publication in official Gazette. They extend to the whole of Bihar and supersede the Bihar payment of wages rules, 1937 and the Bihar minimum wages rules, 1951. Rules 3 to 5 fix the method for minimum wages; the rules print no rupee rate.
Later amendments and State notifications under these rules should be checked in the State Gazette.
The notification and the commencement clause
The notification begins by saying that it is made in exercise of the powers conferred by section 67 of the Code on Wages, 2019 and in supersession of the Bihar payment of wages rules, 1937 and the Bihar minimum wages rules, 1951. The Governor of Bihar makes the rules under section 67(1) of the Code. Our post on sections 67 and 68 of the Code explains that power.
Rule 1(3) reads: "They shall come into force from the date of publication in official Gazette." This article states no calendar date for commencement beyond the Gazette reference given above. Rule 1(2) says the rules extend to the whole of Bihar. The notification names the two superseded sets and does not reproduce their text.
For the Central rule on short title, commencement and definitions, see rules 1 and 2 of the Central Rules. What Bihar adds is its own list of definitions and the earlier rules it supersedes. A short labour law compliance review is a sensible first step for an employer whose payroll still follows the superseded rules.
Definitions that matter to an employer (rule 2)
Rule 2 prints a long list of definitions. Those that decide how the minimum-wage rules work are these:
| Term | What rule 2 says |
|---|---|
| State Government | The Government of Bihar, except for rules 4 and 30, where it means the Labour Resource and Migrant Workers Welfare Department |
| Metropolitan area | A compact area having a population of ten lakhs or more comprised in one or more districts, or declared as such by the State Government by notification |
| Non-metropolitan area | A compact area having a population of less than ten lakhs but more than one lakhs, comprised in one or more districts, or declared as such by notification |
| Rural area | An area which is not a metropolitan or non-metropolitan area |
| Unskilled, semi-skilled, skilled and highly skilled work | Each described in words in clauses (x), (t), (v) and (k) |
| Day | A period of 24 hours beginning at mid-night |
| Family | A spouse, dependent children and dependent parents as listed in clause (i); for dependent parents the income limit is the minimum wage of a skilled worker as notified by the State Government |
"Population" means the population at the last preceding census of which the relevant figures have been published. Any word not defined takes its meaning from the Code or the respective Central Rules (clause (z)).
Norms for fixing the rate (rule 4)
Rule 4(1) requires the State Government, while fixing minimum rates under section 6 of the Code, to take into account three things: the geographical area (metropolitan, non-metropolitan or rural), experience in the area of employment, and the level of skill required. The proviso says the State Government shall not fix minimum wages and allowances of State Government employees under this Code.
The State Advisory Board constituted under rule 20 advises on the skill categorisation of occupations, arduousness of work, hazardous occupations or processes and underground work (rule 4(2)). On that advice the State Government groups occupations into four categories, namely unskilled, semi-skilled, skilled and highly skilled, and notifies the grouping, and may modify, delete or add entries from time to time (rule 4(3)). The Board takes into account, to the possible extent, the national classification of occupation or the national skills qualification framework (rule 4(4)).
How the minimum rate of wages is calculated (rule 3)
Rule 3(1) provides that the minimum rate of wages is fixed on a day basis, keeping in view these criteria:
| Criterion | As printed in rule 3(1) |
|---|---|
| Standard working class family | A spouse and two children apart from the earning worker, equal to three adult consumption units |
| Food | A net intake of 2700 calories per day per consumption unit |
| Clothing | 66 meters cloth per year per standard working class family |
| Housing rent | 10 per cent of food and clothing expenditure |
| Fuel, electricity, digital communication and other items | 20 percent of minimum wage |
| Education of children, medical needs, recreation and contingencies | 25 percent of the minimum wage |
Rule 3(2) deals with conversion. Where the rate is fixed daily, in a six-day working week the daily wage is divided by eight to give the hourly rate and multiplied by twenty-six to give the monthly rate. A fraction of one-half or more is rounded off to the next whole number and a fraction below one-half is ignored. Where the establishment follows a five-day or four-day week, the monthly rate is the daily wage multiplied by twenty-six, provided the worker completes forty-eight hours of work in a week.
Rule 3(3) allows the Advisory Board's recommendation to take into account the arduousness of work (such as temperature or humidity, hazardous occupations or processes, dangerous operations or underground work) and the Consumer Price Index notified by the Labour Bureau, Government of India. Rule 3(4) says the State Government shall not fix minimum wages below the Floor Wages fixed by the Central Government under section 9 of the Code.
For the Central position, see rule 3 of the Central Rules. The rupee rates come from the State's notifications, not from these rules; our short post on minimum wages in Bihar is a starting point for the notified position.
Revision of dearness allowance (rule 5)
Rule 5 says the cost-of-living allowance and the cash value of the concession in respect of essential commodities at concession rate shall be computed once before 1st April and then before 1st October in every year, to revise the variable dearness allowance payable to employees on the minimum wages. The computation considers the Average Consumer Price Index Number for Industrial Workers published by the Labour Bureau, Ministry of Labour and Employment, Government of India.
A worked example
Gaya Packaging Works, a unit in Gaya, engages a helper whose occupation the State has placed in the semi-skilled group. The owner cannot work out the minimum monthly wage from rule 3 alone, because the rule governs how the State fixes the rate. What the owner can check from the rules is how a notified daily rate converts: dividing by eight for an hour and multiplying by twenty-six for a month in a six-day week, with half-figures rounded up. If the unit moves to a five-day week, the monthly rate is still the daily wage multiplied by twenty-six, but only if each worker completes forty-eight hours in the week. The owner should also diarise the two dearness allowance dates, 1 April and 1 October, and check what the State has notified before each.
Need help with Bihar wage compliance?
If your wage structure was built on the 1937 and 1951 Bihar rules, a review against the 2026 rules can show which practices need to change. Our labour law compliance team can map your establishment to the correct rule set and check what the State has notified for your area.
Key takeaways
- The rules are the Code on Wages (Bihar) Rules, 2026, as notified on 30 June 2026; rule 1(3) says commencement is from the date of publication in official Gazette.
- They extend to the whole of Bihar and supersede the Bihar payment of wages rules, 1937 and the Bihar minimum wages rules, 1951.
- Rule 2 defines metropolitan, non-metropolitan and rural areas and four skill levels.
- Rule 3 sets the method (day basis, divided by eight, multiplied by twenty-six); rule 4 requires four skill categories on the Advisory Board's advice.
- Rule 5 provides for computing dearness allowance before 1 April and before 1 October each year.
Read next
- Code on Wages (Bihar) Rules, 2026: working hours, weekly rest, night shift and overtime
- Code on Wages (Bihar) Rules, 2026: registers, wage slip, forms and miscellaneous rules
- Rule 3 of the Central Rules: manner of calculating minimum rate of wages
- Minimum wages in Bihar (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.