Rule 10 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 10 sets out the manner in which the Central Government fixes the floor wage: it may consult the Central Advisory Board, may circulate the consultation to all State Governments, considers both, and may revise the floor wage ordinarily at an interval not exceeding five years, adjusting for cost of living in between. It is a procedure for government, not a duty on employers, but it explains the base below which no minimum wage can fall. A payroll compliance audit checks that your wage structure never drops below the notified floor and minimum rates.
The Central Government fixes the floor wage "taking into account the minimum living standard including the food, clothing, housing and any other factors considered appropriate" (rule 10(1)), after it may consult the Board and may circulate that consultation to all States for comments (rule 10(2)). It may revise the floor wage ordinarily at an interval not exceeding five years and make periodic cost-of-living adjustments in consultation with the Board and the States (rule 10(4)). Rule 10 gives no figure and prints no list of consumption units, calories, cloth or rent percentages.
The section behind this rule
Section 9(1) of the Code: "The Central Government shall fix floor wage taking into account minimum living standards of a worker in such manner as may be prescribed", and different floor wages may be fixed for different geographical areas. Section 9(2): the minimum rates fixed by the appropriate Government under section 6 "shall not be less than the floor wage", and if the minimum rates fixed earlier are higher, the appropriate Government shall not reduce them. Section 9(3): before fixing the floor wage, the Central Government may obtain the advice of the Central Advisory Board and consult State Governments in the prescribed manner. Rule 10 is that prescribed manner. See section 9.
What rule 10 says, sub-rule by sub-rule
| Sub-rule | Text in summary |
|---|---|
| (1) | The Central Government may consult the Board when fixing the floor wage, taking into account the minimum living standard including the food, clothing, housing and any other factors it considers appropriate from time to time |
| (2) | The consultation under (1) may be circulated to all the State Governments for further consultation and their comments |
| (3) | The Board's consultation and the States' views may be considered before fixing the floor wage under (1) |
| (4) | The Central Government may revise the floor wage fixed under (1), ordinarily at an interval not exceeding five years, and undertake adjustment for variations in the cost of living periodically, in consultation with the Board and the State Governments |
The verbs are "may" throughout. The Rules do not say that consultation is compulsory; section 9(3) also uses "may". Treat consultation as the usual route, but the text does not make a floor wage invalid if a step is skipped; that would be for a court to decide.
What the factors are, and what they are not
The only named factors are food, clothing and housing, plus "any other factors considered appropriate by the Central Government from time to time". Rule 10 does not translate these into numbers. In particular, it does not list consumption units per earner, calories, metres of cloth, or a rent percentage of the wage, and it does not say how to value them. Anyone quoting a formula for the floor wage should point to the order or notification that contains it; the rule itself does not.
Who is consulted
- The Board (the Central Advisory Board under section 42(1), rule 2(1)(e)). Its constitution and procedure are in rules 29 to 32.
- All State Governments, to whom the consultation "may be circulated". The Rules set no time limit for State comments. The rule is silent on whether the Government must publish the floor wage's basis.
The five-year interval
Rule 10(4) says "ordinarily at an interval not exceeding five years". That mirrors section 8(4), under which the appropriate Government "shall review or revise minimum rates of wages ordinarily at an interval not exceeding five years". The word "ordinarily" leaves room for an interval that departs from five years in a particular case. Between revisions, the Central Government may "undertake adjustment for variations in the cost of living periodically", again after consulting the Board and the States. For the variable dearness allowance on minimum wages, see rule 4.
How the floor wage affects employers
The floor wage works as a lower bound on the minimum wages that governments notify. It does not itself state what an employer must pay a particular worker; that is the minimum rate of wages notified for the employment (section 5). But if a State's minimum rate is lower than the floor wage, section 9(2) says it must not be. Employers should therefore read two documents: the floor wage notification (different for different geographical areas, if so fixed) and the minimum wage notification for their scheduled employment. The Rules in this article do not state a floor wage amount; check the Central Government's notification.
Illustration (no figures). Suppose a floor wage is notified for an area and a State's earlier minimum rate for an employment is lower than it. Under section 9(2), the State's rate cannot stay below the floor wage. Conversely, if the State's earlier rate is already higher than the floor wage, the State cannot reduce it to the floor.
Central Rules versus State rules
Rule 10 is a Central Government procedure: the Central Government fixes the floor wage for the whole country under section 9. State Governments do not fix a floor wage; they fix minimum rates, using their own wage rules. The Central Rules apply where the Central Government is the appropriate Government; where the State is, the State's own wage rules govern the minimum rate.
Need help reading floor wage and minimum wage notifications together?
Because the floor wage and the notified minimum rates both bind, a wage structure has to be tested against both. Our payroll compliance audit team can compare your pay grades against current notifications for each location and flag gaps.
Key takeaways
- The Central Government fixes the floor wage, considering food, clothing, housing and other appropriate factors (rule 10(1)).
- It may consult the Board and circulate the consultation to all States.
- The floor wage is revised ordinarily at an interval not exceeding five years, with periodic cost-of-living adjustments.
- Rule 10 prints no list of calories, consumption units, cloth or rent percentages, and no figure.
- Minimum rates fixed under section 6 cannot be less than the floor wage.
Read next
- Section 9: floor wage fixed by the Central Government
- Rules 11 and 12: wages of contractual employees and short working day
- Rule 3: manner of calculating minimum rate of wages
- Central minimum wages 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.