Rule 102 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 102 fixes how the journey allowance works: the employer pays a lump sum for the to-and-fro fare to the worker's home State if the worker has worked at least 180 days in the preceding twelve months, once in twelve months, with a special rule when the worker changes employer mid-way.
Rule 102(1): the employer pays a lump sum for the to-and-fro fare from the place of employment to the place of residence in the home State, by train not less than II Class sleeper, by bus or any other mode of passenger transport, if the worker has worked not less than 180 days in the establishment in the preceding twelve months; once in twelve months. Rule 102(2): if the worker changes employer without having taken the allowance, the present employer pays on the worker's certificate, counting the 180 days including the period with the previous employer.
The Code provision behind the rule
Section 61 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) says the employer shall pay to every inter-State migrant worker employed in the establishment, in a year, a lump sum amount of fare for to-and-fro journey to his native place from the place of employment, "in the manner taking into account the minimum service for entitlement, periodicity and class of travel and such other matters as may be prescribed by the appropriate Government". Rule 102 supplies those details. Section 59 applies this Part to every establishment in which ten or more inter-State migrant workers are employed, or were employed on any day of the preceding twelve months. See our sections 60 and 61 explainer and the wider guide to inter-State migrant workers' benefits.
The Central Rules apply where the Central Government is the appropriate Government. Where the State Government is the appropriate Government, the State's own rules set the entitlement. A payroll compliance audit can check how your migrant worker entitlements are built into payroll.
Rule 102(1): the entitlement
| Element | What the rule says |
|---|---|
| Who pays | The employer |
| What | A lump sum on account of fare for to-and-fro journey |
| Journey | From the place of employment to the place of residence in the home State and back |
| Mode | By train not less than II Class sleeper, or by bus, or any other mode of passenger transport |
| Condition | The worker has worked not less than one hundred and eighty days in the concerned establishment in the preceding twelve months |
| Frequency | Once in twelve months (proviso) |
Reading the rule
- Lump sum, not reimbursement. The employer pays a lump sum. The text does not require tickets or receipts, and does not set an amount or formula. It speaks only of the fare for the journey by the stated modes. The text is silent on how the lump sum is computed, for example by distance or by actual fare.
- Floor on class of travel. "Not less than II Class sleeper" sets the minimum for rail. Bus or any other passenger transport is permitted as an alternative mode.
- Two ways, home State. The journey is to the place of residence in the worker's home State and back.
- 180 days in the concerned establishment. The count is of days worked in the establishment within the preceding twelve months. The text does not say whether paid leave or weekly offs count as days worked; it says "worked". Take advice before excluding such days.
- Once in twelve months. The allowance is not payable more than once in any twelve months.
- Who is an inter-State migrant worker. That is a defined term in section 2 of the Code. This article does not set out the definition; check the Code's definitions clause for the conditions of recruitment and employment across State lines.
Rule 102(2): change of employer
| Condition | Result |
|---|---|
| The worker changes employer in the middle of the employment period | |
| The worker has not availed journey allowance from the previous employer | |
| The worker gives a certificate to that effect | The present employer pays journey allowance |
| The worker has completed 180 days in the preceding twelve months, including the period spent with the previous employer |
The new employer relies on the worker's certificate. The rule does not prescribe the form or content of the certificate. The text does not say whether the present employer may recover any amount from the previous employer; it is silent. Because the previous employer's days are counted, the present employer may need to ask for proof of prior service.
What employers should do
- Identify inter-State migrant workers and track their home State and start date.
- Count days worked in the preceding twelve months in each establishment.
- Fix a lump sum that covers at least the fare by II Class sleeper, bus or other transport for a to-and-fro journey (the rule does not fix an amount).
- Pay once in twelve months and keep a record.
- Take the worker's certificate on change of employer and add previous service days.
- Show the payment in payroll as a separate item. For tax treatment, see our income-tax guides.
Section 61 uses the phrase "in a year", while rule 102(1) uses once in twelve months. Apply the rule's twelve-month test.
The text of rule 102 does not give a penalty. A failure to comply with the Code and rules is dealt with under the Code's penalty provisions; see our section 94 explainer.
Practical examples
Example 1. A worker from Bihar has worked at a Gujarat factory for 200 days in the last twelve months. The employer pays a lump sum covering the to-and-fro fare by II Class sleeper or bus to the worker's home. No second payment is due for the next twelve months.
Example 2. A worker moves from one construction contractor to another after 100 days and has not taken the allowance. The worker gives the new employer a certificate. After another 80 days, the total is 180 days in the preceding twelve months, and the present employer pays.
Example 3. A worker has worked only 150 days in the preceding twelve months in the establishment and has no earlier service to add. The 180-day condition is not met.
Compliance checklist
- Register of inter-State migrant workers with home State and joining date.
- Day-count tracker for the preceding twelve months.
- Defined lump sum policy at least equal to the fare for the stated modes.
- Template for the worker's certificate on change of employer.
- Payroll flag so the payment is not repeated within twelve months.
Need help building journey allowance into payroll?
Tracking 180 days, previous service and home State payments across contractors is easy to get wrong without a system. Our team can review your migrant worker entitlements and payroll set-up. Start with our payroll compliance audit service.
Key takeaways
- The employer pays a lump sum for the to-and-fro fare to the worker's home State.
- The worker must have worked at least 180 days in the establishment in the preceding twelve months.
- Payable once in twelve months.
- The mode is train not less than II Class sleeper, bus or any other passenger transport.
- On change of employer, the present employer pays on the worker's certificate and counts earlier service.
- The rule does not fix an amount.
- State rules apply where the State is the appropriate Government.
Read next
- Sections 60 and 61 of the OSH Code: facilities and journey allowance for inter-State migrant workers
- Rules 103 and 104: helpline number and study of inter-State migrant workers
- Inter-State migrant workers: benefits, allowance and welfare 2026
- Rules 100 and 101: experience certificate and prohibition of contract labour
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.