Sections 61 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 61 gives the Code on Wages, 2019 an overriding effect: it prevails over any inconsistent provision in another law, and over the terms of any award, agreement, settlement or contract of service. Section 62 lets the appropriate Government delegate its powers under the Code by notification. If your employment terms or sector rules conflict with the Code, a legal consultation can sort out which prevails.
The Code "shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the terms of any award, agreement, settlement or contract of service" (s.61). The appropriate Government may, by notification, direct that any power it has under the Code be also exercisable by a specified officer or authority; where the Central Government is the appropriate Government, even by a State Government or its officers; where the State Government is, only by officers subordinate to the State Government (s.62).
Section 61: the overriding clause
The text: "The provisions of this Code shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the terms of any award, agreement, settlement or contract of service."
What is overridden
| Source of the inconsistent term | Effect |
|---|---|
| Any other law for the time being in force | The Code prevails to the extent of inconsistency |
| An award | Same |
| An agreement | Same |
| A settlement | Same |
| A contract of service | Same |
Three points of reading:
- Only inconsistent terms are displaced. The words are "anything inconsistent therewith". A term that is consistent with the Code, or that gives the employee more than the Code requires, is not caught by the words of section 61 as such. Note that section 60 separately voids terms that waive the amounts due; see sections 59 and 60.
- Other laws are not wiped out. Only inconsistency matters. Many laws can apply to the same workplace, such as the other Labour Codes and sector laws. The text does not say how the Code ranks against a later law, and it does not name particular laws. Section 66 saves two specific enactments; see sections 65 and 66.
- Settlements and awards do not lock in lower rates. A wage settlement signed years ago cannot be used to pay less than the Code requires where the two are inconsistent.
Hypothetical example. A factory has an old settlement under which a weekly-paid group of workers receives wages on the 15th of the following month. The Code's wage-payment time limits, covered in section 17, apply to the employer. To the extent the settlement allows payment later than the Code does, section 61 gives the Code effect over the settlement. The settlement terms are invented to show the point.
Practical checks for employers
- List each appointment-letter clause, company policy, settlement and State rule that touches pay, deductions, bonus or records.
- Mark each clause as consistent, more beneficial or inconsistent with the Code.
- Revise the inconsistent ones; do not wait for a claim.
- Take care with the repealed Acts. Section 69 repeals four Acts and saves actions taken under them to the extent they are not contrary to the Code; see our article on commencement and repeal.
Section 62: delegation of powers
"The appropriate Government may, by notification, direct that any power exercisable by it under this Code shall, in relation to such matters and subject to such conditions, if any, as may be specified in the notification, be also exercisable":
| Where the appropriate Government is... | The power may be exercised also by... |
|---|---|
| (a) The Central Government | Such officer or authority subordinate to the Central Government, or by the State Government, or by such officer or authority subordinate to the State Government, as specified in the notification |
| (b) A State Government | Such officer or authority subordinate to the State Government, as specified in the notification |
Notes:
- The word is "also exercisable": the delegating Government keeps the power.
- Delegation is by notification, for specified matters and on specified conditions, if any.
- A State Government cannot delegate to the Central Government or its officers. The Central Government can delegate to a State Government.
- The section applies to "any power exercisable by it under this Code". It does not carve out the rule-making power in section 67, so whether rule-making can be delegated is a question the text leaves open; the rule-making power is expressed to be exercised "subject to the condition of previous publication" in section 67.
Who is the appropriate Government is defined in section 2(d); see our article on the definitions. In practice, a notification under section 62 tells you who now exercises, for example, the powers to fix minimum wages, appoint authorities or specify compounding officers. Check the notifications of the appropriate Government.
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. Where the State Government is the appropriate Government, the State's own wage rules apply. In the Rules text read for this article, no rule adds to sections 61 or 62. The Rules do refer to authorities that the Central Government notifies, such as the claims authority in rule 49 and the officers in rules 53 and 54, and those are examples of where delegation notifications matter. See the rules on claims.
Need help reconciling contracts and policies with the Code?
Legacy settlements, standing orders and appointment letters often carry terms that no longer fit. Our legal consultation team can review them against the Code, identify inconsistent terms and advise on revisions and notification-based delegation questions.
Key takeaways
- The Code prevails over inconsistent provisions of other laws and over inconsistent awards, agreements, settlements and contracts of service (s.61).
- Only inconsistent terms are displaced; more beneficial terms are outside the words of the section.
- Section 62 lets the appropriate Government delegate powers by notification; the Central Government can delegate to States, but a State can delegate only within its own officers.
- Delegation is "also" exercisable: the Government keeps its power.
Read next
- Sections 59 and 60: burden of proof and contracting out
- Sections 63 and 64: exemption of employer and protection against attachment
- Sections 65 and 66: Central Government directions and saving
- 4 Labour Codes 2020: Code on Wages, IR Code, OSH Code and Social Security Code
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.