Rules 1 and 2 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.
Rule 1 gives the Rules their name and says they take effect on the date they are published in the Official Gazette. Rule 2 defines the terms used throughout the Rules: authority, appellate authority, Board, day, electronically, the three skill grades, highly skilled occupation and others. If you work with the Rules, read these two first; every later rule leans on them. A labour law compliance adviser can map them to your payroll and registers.
The Code on Wages (Central) Rules, 2026 were notified on 8 May 2026 as G.S.R. 343(E) and come into force on the date of publication in the Official Gazette (rule 1(2)). They apply where the Central Government is the appropriate Government; where the State Government is the appropriate Government, the State's own wage rules apply. Rule 2(1) defines 21 terms (clauses (a) to (u)), and rule 2(2) says any word not defined in the Rules has the meaning given in the Code.
Rule 1: short title and commencement
Rule 1(1): the Rules may be called the Code on Wages (Central) Rules, 2026. Rule 1(2): they come into force on the date of their publication in the Official Gazette. The notification itself records that the draft of the Rules (G.S.R. 936(E), 30 December 2025) was published under section 67(1) of the Code, that objections and suggestions were invited within forty-five days, and that the Central Government considered those received before making the final Rules.
The notification also supersedes seventeen older sets of rules, "except as respects things done or omitted to be done before such supersession". They include the Payment of Wages (Procedure) Rules, 1937, the Minimum Wages (Central) Rules, 1950, the Payment of Bonus Rules, 1975, the Equal Remuneration Rules, 1976, the Payment of Wages (Nomination) Rules, 2009 and the Code on Wages (Central Advisory Board) Rules, 2021, among others. So something done under an old rule before supersession is not undone by the new Rules.
The Code itself is in force from 21 November 2025, when the four Labour Codes were brought into force. These Rules sit under it; see sections 1 and 69 for commencement and the four Acts repealed.
Who the Central Rules apply to
The Rules are made by the Central Government under section 67. Under section 2(d), the Central Government is the appropriate Government for establishments carried on by or under its authority, and for railways, mines, oil fields, major ports, air transport service, telecommunication, banking and insurance companies, corporations established by a Central Act, central public sector undertakings and their subsidiaries, and autonomous bodies owned or controlled by the Central Government, including contractors' establishments for those purposes. For any other establishment, the State Government is the appropriate Government. For those, the State's own wage rules apply, not these Rules. Read section 2 definitions for the full text.
Rule 2(1): the definitions at a glance
| Clause | Term | What the rule says |
|---|---|---|
| (a) | appeal | an appeal under s.49(1) |
| (b) | appellate authority | the one appointed by the Central Government under s.49(1) |
| (d) | authority | the one appointed by the Central Government under s.45(1) |
| (e), (f) | Board, Chairperson | the Central Advisory Board under s.42(1); its Chairperson |
| (h) | Committee | a committee appointed by the Central Government under s.8(1)(a) |
| (i) | day | a period of twenty-four hours beginning at mid-night |
| (j) | electronically | information submitted by email, or maintained or displayed on the designated portal, mobile application or website, or digital payment in any mode, for the purposes of the Code |
| (k) | form | the forms appended to the Rules |
| (l) | geographical area | the areas notified by the Central Government from time to time |
| (m) | highly skilled occupation | see below |
| (n) | Inspector-cum-Facilitator | a person appointed by the Central Government under s.51(1) |
| (p) | normal rate of wage | wage as defined in s.2(y) |
| (q) | registered trade union | a trade union registered under the Industrial Relations Code, 2020 (35 of 2020) |
| (s) to (u) | semi-skilled, skilled, unskilled occupation | see below |
The remaining clauses are (c) appendix (an Appendix annexed to the Rules), (g) Code (the Code on Wages, 2019), (o) member (of the Board) and (r) section (a section of the Code).
The four skill grades
Section 6(6)(a) of the Code tells the appropriate Government to take skill into account when fixing minimum wages, under the categories unskilled, skilled, semi-skilled and highly skilled. Rule 2 supplies the meanings:
- Unskilled occupation: "requires the application of simply the operating experience and involves no further skills".
- Semi-skilled occupation: requires "skill gained by the experience on job" that can be applied under the supervision or guidance of a skilled employee, and includes supervision over the unskilled occupation.
- Skilled occupation: involves skill and competence through experience on the job or through training as an apprentice in a technical or vocational institute, and calls for initiative and judgment (the text reads "initiating and judgment").
- Highly skilled occupation: calls for "a specific level of perfection and required competence acquired through intensive technical or professional training or practical occupational experience for a considerable period" and requires the employee to assume full responsibility for judgment or decision involved in the work.
These are descriptions, not a list of jobs. Which job falls in which grade for a given scheduled employment is a matter for the order fixing the rates; the Rules do not list trades.
"Electronically" and "day"
Many later rules allow things to be done "electronically": registers (rule 51), wage slips (rule 52), claims (rule 49), notices of fines (rule 15). Rule 2(1)(j) is the one definition behind all of them, and it is wide: email, a designated portal, a mobile application, a website or digital payment in any mode. The text does not name the portal; do not assume one.
"Day" is a period of twenty-four hours beginning at mid-night. It matters for rest days (rule 6), night shifts (rule 7) and any "within X days" counting.
Rule 2(2): the Code fills the gaps
Words and expressions used in the Rules but not defined there have the meanings given in the Code. So "wages", "employee", "employer", "establishment" and "contractor" take their meaning from section 2 of the Code, not from the Rules.
What the text does not say
The Rules do not define "week" in rule 2; rule 6 gives its own explanation for the rest-day rule. They do not say which portal or application is "designated". If a reader needs a figure such as a wage rate or an eligibility limit, it is not in rules 1 and 2; those are notified separately.
Need help applying the Rules to your establishment?
The first step is deciding whether your establishment falls under the Central Rules or a State's rules, and then checking registers, wage slips and notices against them. Our labour law compliance team can do that review and set up the electronic records the Rules allow.
Key takeaways
- The Rules were notified on 8 May 2026 (G.S.R. 343(E)) and take effect on Gazette publication (rule 1(2)).
- They supersede seventeen older sets of rules, except for things done before supersession.
- They apply where the Central Government is the appropriate Government; otherwise the State's own wage rules apply.
- Rule 2(1) has 21 definitions, including the four skill grades and "electronically".
- Undefined words take their meaning from the Code (rule 2(2)).
Read next
- Rules 4 and 5: variable dearness allowance revision and hours of work
- Rule 3: manner of calculating minimum rate of wages
- Sections 67 and 68: power to make rules and remove difficulties
- Central vs State minimum wages
Disclaimer: Based on the Code on Wages, 2019 (as enacted) and, where noted, the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026), as on 1 October 2026. The Code is in force from 21 November 2025; State Governments make their own rules for establishments where the State is the appropriate Government, and wage rates are notified separately. Verify the current position before acting.