Rules 46 and 47 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.
Rules 46 and 47 cover the case where a deceased or untraceable employee has dues that cannot be paid, and there is no nomination or the nominee cannot be paid. The employer deposits the money with the Deputy Chief Labour Commissioner (Central) after six months; that officer invests it, publishes notice, hears claimants and releases the amount. After seven years unclaimed, the Central Government directs what happens. A payroll compliance audit will identify such balances in your books and put the deposit steps on a calendar.
Rule 46: where an amount payable under section 44(1)(b) remains undisbursed because no nomination was made or for any other reason it could not be paid to the nominee, the employer deposits it after the expiry of six months from the date it became payable, with the Deputy Chief Labour Commissioner (Central) having jurisdiction, before the expiry of the fifteenth day after the last day of the six months, by bank transfer or a crossed demand draft of a scheduled bank in India. Rule 47: the officer keeps the amount invested in Central or State Government Securities or in a fixed deposit in a scheduled bank, publishes notice (at least fifteen days on the notice board and in local vernacular newspapers), releases the amount after a hearing, and if unclaimed for seven years deals with it as the Central Government directs. The Rules apply where the Central Government is the appropriate Government; otherwise the State's own wage rules apply.
The section behind these rules
Section 44(1)(b) of the Code: where no nomination has been made, or the amounts cannot be paid to the nominee, they shall "be deposited with the such authority, as may be prescribed, who shall deal with the amounts so deposited in the manner as may be prescribed". Section 44(2) says that payment to the nominee or deposit with the authority discharges the employer's liability. See sections 43 and 44. Rule 46 prescribes the authority and the deposit; rule 47 prescribes how the deposit is dealt with.
Rule 46: deposit
Rule 46(1): when and with whom
| Element | Text |
|---|---|
| Which amounts | any amount payable to an employee under section 44(1)(b) that remains undisbursed since no nomination was made, "or for any other reason" it could not be paid to the nominee |
| Starting point | the date the amount became payable |
| Waiting period | six months |
| Deposit with | the Deputy Chief Labour Commissioner (Central) having jurisdiction |
| Deadline | "before the expiry of the fifteenth day after the last day of the said period of six months" |
So the window is: wait six months from the date the amount became payable; then deposit within the next fifteen days. The text says "after the expiry of six-months" and "before the expiry of the fifteenth day after the last day", which together give a fifteen-day window following the six months.
Illustration (hypothetical). Final dues become payable on 1 March. The six months run to 31 August. The employer deposits after that, and before the fifteenth day after 31 August, i.e. by about 14 September. Count the days carefully against the actual printed words; the "day" under rule 2(1)(i) is a twenty-four-hour period beginning at midnight.
Rule 46(2): mode of deposit
"The amount to be deposited under sub-clause (1) shall be through bank transfer or through a crossed demand draft obtained from any scheduled bank in India drawn in favour of such Deputy Chief Labour Commissioner (Central)." (The printed "sub-clause (1)" is a slip for sub-rule (1).) No cash. The rule does not prescribe a challan, a covering letter or particulars to accompany the deposit. The text is silent; a letter with the employee's name, the date of death or last known address, the nature of dues and the nomination position is the sensible minimum.
How rule 46 differs from rule 45(2)
Rule 45(2) applies where there is a nominee and the amount could not be paid to the nominee within three months; it directs a deposit with the same officer, who then disburses to the nominee. Rule 46 applies where there is no nomination, or the amount could not be paid to the nominee "for any other reason", and uses a six-month wait. The two periods differ and the text does not reconcile them; an employer holding dues should follow rule 45(2) when a nomination exists and rule 46 when it does not. See rule 45.
Rule 47: manner of dealing with the deposit
The amount "shall remain with the concerned Deputy Chief Labour Commissioner (Central)" and be dealt with as follows.
- Investment (rule 47(1)): invested in Central or State Government Securities, or deposited as a fixed deposit in a scheduled bank.
- Notice (rule 47(2)): as soon as may be possible, the officer exhibits a notice with such particulars as he considers sufficient, "at least for fifteen days on the notice board", and publishes it in two local newspapers of vernacular language commonly understood in the area where the undisbursed wages were earned, and also in two local newspapers in vernacular language in the area of the employee's permanent residence.
- Release (rule 47(3)): subject to sub-rule (4), the officer releases the amount to the nominee, or to the person who has claimed it, in whose favour he has decided, "after giving the opportunity of being heard".
- Unclaimed (rule 47(4)): if the amount remains unclaimed for seven years, it is dealt with "as directed by the Central Government from time to time in this behalf".
| Step | Who | Time or condition |
|---|---|---|
| Deposit | employer to the Deputy Chief Labour Commissioner (Central) | after six months, within fifteen days after |
| Investment | the officer | Central or State Government Securities, or a scheduled bank fixed deposit |
| Notice | the officer | at least fifteen days on the notice board; two newspapers in each of two areas |
| Release | the officer | to nominee or claimant after a hearing |
| Unclaimed | the Central Government | after seven years, as directed |
Open points
- The rule does not say who pays for the newspaper notices, nor how interest earned on the investment is dealt with.
- It does not say whether the seven years run from the date of deposit or from the date the amount became payable. The words "remains unclaimed for a period of seven years" leave it open.
- It does not say how a claimant proves a claim. The hearing is the only step named. Compare rule 45(2), which speaks of "ascertaining the identity".
- There is no form for the deposit in the Rules.
What this means for employers
Once the employer deposits, section 44(2) says the employer is discharged from liability for that amount. The risk before that is the other way: keeping unclaimed final dues beyond the window leaves the amount payable and the employer exposed to a wage claim. Reconcile "unpaid dues" lines in the books every quarter against the dates in these rules.
Need help clearing undisbursed dues?
Old unpaid balances of employees who have died, left or cannot be traced are a standing compliance gap. Our payroll compliance audit team can list them, work out the dates under rules 45 to 47 and prepare the deposits and covering letters.
Key takeaways
- Without a nomination, or where the nominee cannot be paid, deposit after six months from the date payable, within fifteen days after the six months.
- Deposit goes to the Deputy Chief Labour Commissioner (Central) by bank transfer or crossed demand draft.
- The officer invests the amount, publishes notice, hears claimants and releases it.
- Unclaimed for seven years: dealt with as the Central Government directs.
- Deposit discharges the employer under section 44(2).
Read next
- Rule 45: nomination and payment of undisbursed dues on death
- Rules 48 and 49: returns and procedure for filing claims
- Sections 43 and 44: responsibility for dues and undisbursed dues on death
- Payment of wages under new labour codes
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.