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Section 6 of the Code on Wages, 2019: Fixation of Minimum Wages

Subject to the floor wage in s.9, the appropriate Government shall fix the minimum rate of wages for employees in accordance with s.8 (s.6(1)). It fixes a rate for time work or...

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Labour Laws
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October 1, 2026
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Oct 1, 2026
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Last updated: October 2026Verified against: Government sources

Section 6 of the Code on Wages, 2019 gives the appropriate Government the power and the duty to fix the minimum rate of wages, for time work or piece work, and tells it what to consider: the skill of workers, the geographical area and, in addition, the arduousness of work. The procedure is in section 8 and the floor in section 9.

Sub-section by sub-section

Sub-sectionRule
s.6(1)Subject to s.9, the appropriate Government shall fix the minimum rate of wages payable to employees in accordance with s.8
s.6(2)The rate is fixed (a) for time work or (b) for piece work
s.6(3)Where employees are on piece work, the Government shall fix a minimum rate for securing them a minimum rate of wages on a time work basis
s.6(4)The time work rate may be fixed by the hour, by the day or by the month (one or more)
s.6(5)Where rates are fixed by the hour, day or month, the manner of calculating the wages shall be as prescribed
s.6(6)Factors for fixation: skill, area, arduousness; norms to be prescribed
s.6(7)The number of minimum rates may, as far as possible, be kept at minimum

The appropriate Government is set out in s.2(d). The rate it fixes is the "minimum wage" (s.2(s)) that section 5 requires every employer to pay. The Code does not state any rate. The figure comes from the notification, and our payroll compliance audit service can help you check payslips against it.

Time work and piece work (s.6(2) and (3))

For piece workers the Government must also fix a time-work equivalent, so that a piece worker has a floor even if output is low. Section 12 then says a person on piece work for whom a minimum time rate and not a minimum piece rate has been fixed must be paid at not less than the minimum time rate; see sections 10 to 12. For the old-law view, see piece-rate workers and minimum wages.

Wage periods and the calculation (s.6(4) and (5))

Under s.6(4) the minimum rate on time work basis may be fixed by the hour, by the day or by the month. Section 6(5) leaves the manner of calculating the wages "as may be prescribed". "Prescribed" means prescribed by rules of the appropriate Government (s.2(u)).

What the Central Rules add. Rule 3 of the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026) applies only where the Central Government is the appropriate Government. Where the State Government is, the State's own rules apply. Rule 3 says:

  • the minimum rate of wages shall be fixed on a day basis, keeping in view criteria the Central Government specifies by special or general order (rule 3(1));
  • the Central Government shall not fix the minimum wages of Central Government employees under the Code (proviso to rule 3(1));
  • where a day rate is fixed, it is divided by eight for the hourly rate and multiplied by twenty-six for the monthly rate, with a fraction of one-half or more rounded up and less than one-half ignored (rule 3(2));
  • where the working week is less than six days, the hourly rate so calculated is used to derive the minimum wages for the day (rule 3(3)).

Illustration only (not a notified rate). If a day rate of Rs 400 were fixed, the hourly rate would be Rs 400 / 8 = Rs 50 and the monthly rate Rs 400 x 26 = Rs 10,400. The figure is hypothetical to show the arithmetic.

Payroll teams should convert a notified day rate into hourly and monthly figures and check each payslip against it. See Rule 3 for the full rule.

The factors for fixation (s.6(6))

Section 6(6) sets a priority order.

ClauseFactorMode
(a)Skill of workers required for working under the categories of unskilled, skilled, semi-skilled and highly-skilled, or geographical area or bothThe Government shall primarily take into account
(b)Arduousness of work, such as temperature or humidity normally difficult to bear, hazardous occupations or processes, or underground work, as prescribed by that GovernmentThe Government may, in addition, take into account for certain categories
(c)Norms of fixationSuch as may be prescribed

So skill or area is the primary basis and arduousness an additional factor. The Central Rules define the skill categories: rule 2(1)(u) says an unskilled occupation requires the application of simply the operating experience and involves no further skills; rule 2(1)(s) describes semi-skilled, rule 2(1)(t) skilled, and rule 2(1)(m) highly skilled occupations. Rule 2(1)(l) says "geographical area" means the areas notified by the Central Government from time to time. See Rules 1 and 2.

Fewer rates (s.6(7))

The number of minimum rates referred to in s.6(6) may, as far as possible, be kept at minimum by the appropriate Government. The word "may" makes this a direction to aim for, not a limit.

Link with the floor wage and the procedure

Section 6(1) is "subject to the provisions of section 9": rates cannot fall below the floor wage (see section 9). They must be fixed "in accordance with" section 8, and what can make up the rate is in section 7. Check your own State's rules for the divisors; the 8 and 26 factors are in the Central Rules.

Need help applying notified rates?

Matching each employee to the right category, area and wage period is where underpayment errors start. Our payroll compliance audit team can map your workforce to the notified rates and test your hourly and monthly conversions.

Key takeaways

  • The appropriate Government fixes the minimum rate for time work or piece work, subject to the floor wage and in accordance with s.8.
  • Piece workers get a time-work-basis minimum as well.
  • Time rates may be hourly, daily or monthly; the manner of calculation is prescribed.
  • Skill or geographical area (or both) is the primary basis; arduousness may be added.
  • Under the Central Rules, a day rate is divided by eight for an hour and multiplied by twenty-six for a month.
  • The Central Rules apply only where the Central Government is the appropriate Government.

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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.

Quick recapKey facts & short answers

Key Facts About Section 6

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who fixes minimum wages?

The appropriate Government under s.6(1), which is the Central or the State Government depending on s.2(d).

Can minimum wages be fixed by the hour?

Yes. The time work rate may be fixed by the hour, the day or the month (s.6(4)).

Section 6: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

The appropriate Government under s.6(1), which is the Central or the State Government depending on s.2(d).

Yes. The time work rate may be fixed by the hour, the day or the month (s.6(4)).

Primarily skill (unskilled, skilled, semi-skilled, highly skilled) or geographical area or both; it may also take arduousness into account (s.6(6)).

Divide the day rate by eight for an hour and multiply by twenty-six for a month, with rounding as in rule 3(2).

No. The rate comes from the notification of the appropriate Government.

Section 6(7) says the number may, as far as possible, be kept at minimum.