Sections 65 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 65 lets the Central Government give directions to a State Government for carrying the Code into execution in that State, and the State must abide by them. Section 66 saves two enactments, the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 and the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, along with any scheme made under them, from being affected by the Code. If you work across State and Central regimes, a legal consultation can help you see which rules reach you.
The Central Government may, "for carrying into execution of the provisions of this Code in the State", give directions to the State Government, and the State Government shall abide by them (s.65). Nothing in the Code is deemed to affect the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, or any scheme made under them (s.66).
Section 65: directions to the State Government
"The Central Government may, for carrying into execution of the provisions of this Code in the State give directions to the State Government, and the State Government shall abide by such directions."
What the section says and does not say
| Point | Reading |
|---|---|
| Who gives the direction | The Central Government |
| To whom | The State Government |
| Purpose | Carrying into execution the provisions of the Code in the State |
| Binding force | The State Government "shall abide" |
| Form of direction | Not stated; no notification or procedure is prescribed in this section |
| Subject matter | Open-ended within the purpose; the text names no particular provision |
| Enforcement | Not stated |
The section is addressed to Governments, not to employers. An employer does not receive a direction under section 65; it sees the result as a State rule, notification or practice. Where the State Government is the appropriate Government for your establishment, those State acts apply to you, and the Central Rules do not apply there.
How it fits with section 42
Section 42(3) already says that, on the advice of the Central Advisory Board, the Central Government "may issue directions to the State Government as it deems fit in respect of matters relating to issues referred to the Board". Section 65 is the general power; section 42(3) is the specific route linked to the Board's advice. See section 42. The State's own power to direct after consulting its Advisory Board is in section 42(9).
Why it matters for employers
- Differences between States. Wage procedures, authorities and forms differ for State-sphere establishments. A direction under section 65 is one way the Centre can pull State practice into line.
- Delegation. The Central Government's powers can be exercised by a State Government or its officers if a notification under section 62 so directs. That is a different mechanism from a direction under section 65.
- Check notifications. If a State has changed a procedure, find out whether it follows a direction or a State rule.
Hypothetical example. The Central Government gives a direction that States should notify an online portal for filing wage claims. The State Government must abide. An employer in that State sees a State notification naming the portal; the employer files there. The example is invented only to show how a direction reaches the employer.
Section 66: saving of two enactments
"Nothing contained in this Code shall be deemed to affect the provisions of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 and the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, or of any scheme made thereunder."
What is saved
| Saved item | Source of the text |
|---|---|
| Mahatma Gandhi National Rural Employment Guarantee Act, 2005 | Named in s.66 |
| Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 | Named in s.66 |
| Any scheme made under either Act | "or of any scheme made thereunder" |
The words are "shall not be deemed to affect the provisions". The Code does not, by itself, change those provisions. The section does not say that the Code does not apply to workers covered by them at all; it says the Code does not affect the provisions of the two Acts and their schemes. Where a worker or establishment is covered by both, take advice on how the two operate side by side, for example on wage payment rules in a scheme.
Section 66 and section 69
Do not confuse this saving with the repeal and savings in section 69. Section 69(1) repeals four Acts: the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976. Section 69(2) provides that anything done or any action taken under those Acts, including notifications, nominations, appointments, orders and directions, is deemed to have been done under the corresponding provisions of the Code and stays in force to the extent not contrary to the Code, till repealed under the Code or by notification of the Central Government. See our article on commencement and repeal. Section 66 concerns two other Acts that are not repealed.
A note: the Code's section 61 gives it effect over inconsistent laws. Section 66 is the exception for these two enactments: the Code is not to "affect" them. How a conflict is resolved in a concrete case is not stated in the text.
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 65 or 66. The preamble of the Rules supersedes a list of old rules, but it does not deal with the two Acts saved by section 66.
Need help working out which regime applies?
Businesses with sites in several States, or with workers also covered by other enactments, often find the rules pull in different directions. Our legal consultation team can map which authority, State rule or saved enactment applies to each location and workforce.
Key takeaways
- The Central Government may give directions to State Governments for carrying the Code into execution, and the States must abide.
- Section 65 is addressed to Governments; employers see the effect through State rules and notifications.
- Section 66 saves the MGNREGA 2005, the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 and schemes under them from being affected by the Code.
- Section 66 is separate from the repeal and savings of four wage Acts in section 69.
Read next
- Section 42: Central and State Advisory Boards
- Sections 61 and 62: inconsistent laws and agreements and delegation of powers
- Sections 67 and 68: power to make rules and remove difficulties
- Sections 1 and 69: commencement and repeal of four wage laws
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.