Section 42 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.
Section 42 of the Code on Wages, 2019 creates two advisory bodies. The Central Government constitutes the Central Advisory Board, and every State Government must constitute a State Advisory Board. Each advises on minimum wages, jobs for women and other matters referred to it. Employers, employees and independent persons sit on both, and women must make up one-third of the members. Employers who want to understand how Board advice may reach their payroll can take legal consultation on it.
The Central Advisory Board has employer and employee members in equal number, independent persons not exceeding one-third of the Board, and five representatives of State Governments (s.42(1)). One-third of the members must be women, and an independent member is appointed Chairperson (s.42(2)). The Board advises; the Central Government may then issue directions to the State Government on the referred issues (s.42(3)). Each State must constitute its own Advisory Board (s.42(4)), which may form committees (s.42(5)). Procedure and terms of office are left to rules (s.42(10), (11)).
Central Advisory Board: sub-sections (1) to (3)
Who sits on it (sub-section (1) and (2))
The Central Government nominates:
- members representing employers;
- members representing employees, equal in number to the employer members;
- independent persons, not more than one-third of the total members; and
- five representatives of State Governments nominated by the Central Government.
Sub-section (2) adds two rules: one-third of the members referred to in sub-section (1) shall be women, and a member from the independent group (clause (c)) is appointed by the Central Government as Chairperson.
Note that the text gives no total strength. A drafting point also arises: the one-third women rule applies to "the members referred to in sub-section (1)", which on its face includes the five State representatives. The text does not say how a State's nominee is chosen to meet the quota. See the Rules below.
What it advises on (sub-section (3))
The Board advises the Central Government, "from time to time", on reference of issues relating to:
- fixation or revision of minimum wages and other connected matters;
- providing increasing employment opportunities for women;
- the extent to which women may be employed in such establishments or employments as the Central Government may notify; and
- any other matter relating to the Code.
On such advice, the Central Government "may issue directions to the State Government as it deems fit" about the referred issues. This pairs with the general power in section 65. Advice is only on reference; the Board has no power to take up issues on its own initiative under this sub-section.
State Advisory Boards: sub-sections (4) to (9)
| Sub-section | What it says |
|---|---|
| (4) | Every State Government shall constitute a State Advisory Board to advise it on minimum wages and connected matters, employment opportunities for women, the extent to which women may be employed in notified establishments or employments, and any other matter referred by the State Government |
| (5) | The Board may constitute one or more committees or sub-committees on matters in (4)(a) to (d) |
| (6) | The Board, and each committee and sub-committee, consists of employer representatives, an equal number of employee representatives, and independent persons not exceeding one-third |
| (7) | One-third of the members must be women; one independent member is appointed Chairperson of the Board by the State Government, and of a committee or sub-committee by the State Advisory Board |
| (8) | On women's employment advice, the Board has regard to the number of women employed, nature and hours of work, suitability of women, the need for increasing opportunities (including part-time employment) and other relevant factors |
| (9) | After considering the Board's advice, and after inviting and considering representations from establishments, employees or any other person the Government thinks fit, the State Government may issue the direction it considers necessary |
Sub-section (9) matters to employers: before a State issues a direction on these subjects, it may invite representations. If you run an establishment in an industry likely to be affected, watch for those notices.
Minimum wages and the Board
Fixation and revision of minimum wages (section 6 onwards) is the main subject of advice. The procedure for fixing and revising is in section 8; the Advisory Board's place in that process is covered there and in our overview of minimum wages under the new labour codes. This article covers only the constitution and role of the Boards.
Procedure and terms: sub-sections (10) and (11)
Both Boards "shall respectively regulate their own procedure", including that of State committees and sub-committees, "in such manner as may be prescribed", and their terms of office are "such as may be prescribed". For the Central Board, the prescribing is done by the Central Rules.
What the Central Rules add
The Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026) apply only where the Central Government is the appropriate Government, which for this section means the Central Advisory Board. A State's own Advisory Board is governed by that State's wage rules.
Rules 29 to 44 of the Central Rules cover the Central Board. In brief:
- Rule 29: the Board is constituted under s.42(1) of persons nominated by the Central Government.
- Rule 30: the Chairperson calls meetings; on a written requisition from not less than one half of the members, a meeting must be called within thirty days of receipt.
- Rule 31: at least fifteen days' written notice (speed post or electronic) with the list of business; seven days for an emergent meeting.
- Rule 33: quorum is at least one-third of members and at least one employer and one employee representative; a short meeting can be adjourned to a date not later than seven days later.
- Rule 38: a term of three years, with members continuing until successors are named, and holding office during the pleasure of the Central Government.
- Rule 41: an outgoing member is eligible for re-nomination for not more than two terms in total.
Details are in our articles on rules 29 to 32, rules 33 to 37 and rules 38 to 44. The Rules text read does not prescribe the strength of the Board or how the one-third women requirement is met in practice.
Need help with wage policy and State directions?
Employers rarely deal with the Advisory Boards directly, but their advice shapes minimum wage revisions and directions that reach your payroll. Our legal consultation team can help you track consultations, prepare representations and read the resulting notifications.
Key takeaways
- The Central Government constitutes the Central Advisory Board; each State Government must constitute a State Advisory Board.
- Employer and employee members are equal in number; independent persons are not more than one-third; one-third of members must be women.
- The Central Board has five State Government representatives; advice leads to possible directions to State Governments.
- A State may form committees; before directing, it may invite representations.
- Procedure and terms of office are prescribed; Central Rules 29 to 44 apply to the Central Board.
Read next
- Rules 29 to 32: Central Advisory Board constitution and meetings
- Section 43 and 44: responsibility for dues and undisbursed dues on death
- Section 8: procedure for fixing and revising minimum wages
- Advisory committee under the Equal Remuneration Act
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.