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Section 8 of the Code on Wages, 2019: Procedure for Fixing and Revising Minimum Wages

The appropriate Government must either (a) appoint committees to hold enquiries and recommend, or (b) publish its proposals by notification and specify a date not less than two...

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

Section 8 of the Code on Wages, 2019 sets out how the appropriate Government must go about fixing minimum rates of wages for the first time or revising them. It chooses between two routes, a committee that holds enquiries or published proposals open for at least two months, and then requires a notification, normally effective after three months. Rates are to be reviewed or revised ordinarily within five years.

Sub-sections at a glance

Sub-sectionRule
s.8(1)Route (a): committees to hold enquiries and recommend; or route (b): published proposals with a date not less than two months from notification
s.8(2)Committee: employer representatives; an equal number of employee representatives; independent persons not exceeding one-third of the total
s.8(3)After considering the committee's recommendation or all representations, the Government fixes or revises by notification; it comes into force on expiry of three months from issue unless it provides otherwise. Proviso: on route (b) for a revision, consult the concerned Advisory Board
s.8(4)Review or revise ordinarily at an interval not exceeding five years

Section 8(1): two routes

The opening words are "shall either". The Government must use one of the two routes whenever it fixes rates for the first time or revises them.

  • Route (a), committee. The Government appoints "as many committees as it considers necessary" to hold enquiries and recommend on the fixation or revision. The Central Rules, rule 2(1)(h), say "Committee" means a committee appointed by the Central Government under s.8(1)(a).
  • Route (b), published proposals. The Government publishes its proposals by notification for the information of persons likely to be affected, and specifies a date not less than two months from the date of the notification, on which the proposals will be taken into consideration. Affected employers and employees can send representations before that date.

Because "notification" means a Gazette notification (s.2(t)), route (b) puts the proposal on the public record. If you run an establishment in a sector where rates are being revised, watch for such notifications and send your representation before the date specified. Our labour law compliance service can help you follow notifications that touch your establishment and prepare a response.

Section 8(2): the committee

MembersRule
Representing employersAny number the Government decides
Representing employeesEqual in number to the employer representatives
Independent personsNot exceeding one-third of the total members of the committee

Illustration. If the Government names 6 employer representatives, it must name 6 employee representatives, giving 12. Independent persons may not exceed one-third of the total members. If there are n independent members, then n must be at most one-third of (12 + n), which gives n at most 6. A committee of 18 (6 + 6 + 6) is therefore the largest with that employer and employee strength. The text sets only the ceiling and leaves the exact number to the Government.

Section 8(3): the notification and its date of effect

After considering the committee's recommendation under route (a), or all representations received before the specified date under route (b), the appropriate Government shall by notification fix, or revise, the minimum rates of wages. Unless the notification otherwise provides, it comes into force on the expiry of three months from the date of its issue.

Two things follow.

  1. Default lag of three months. Employers get a gap between issue and effect, unless the notification gives a different date. Read the notification: it may specify an earlier or a later date.
  2. Proviso: Advisory Board. Where the appropriate Government proposes to revise rates by route (b), it shall also consult the concerned Advisory Board constituted under s.42. The text applies this proviso to revision by published proposals; it does not say the same for first-time fixation. See section 42.

Section 8(4): review within five years

The appropriate Government shall review or revise minimum rates of wages ordinarily at an interval not exceeding five years. The word "ordinarily" allows departures, but the default is a review at least every five years. Between revisions, the cost of living allowance can change under s.7; see section 7. Under rule 10(4) of the Central Rules the floor wage is also to be revised ordinarily at an interval not exceeding five years.

How this fits with sections 6 and 9

Section 6(1) says the Government fixes rates "in accordance with the provisions of section 8", so a rate that skips the section 8 procedure is open to challenge. Section 9 sets the floor wage that the minimum rates cannot go below; see section 6 and section 9. The Central Rules apply only where the Central Government is the appropriate Government; where the State Government is, the State's own wage rules apply, and the State will run its own committee or proposal process.

Practical points. Diary the "taken into consideration" date and send any representation before it; check whether the final notification gives an effective date other than the three-month default. For the older-law view, see fixation and revision of minimum wages under the 1948 Act.

Example. A State publishes proposals to revise rates on 1 March, specifying 1 May as the date on which they will be taken into consideration; that is two months, which meets the minimum. After considering representations, it issues the final notification on 10 June with no special effective date. The new rates take effect on the expiry of three months from 10 June, that is from 10 September (on this counting). The Government must also have consulted the concerned Advisory Board, because it was a revision by published proposals.

Need help following wage notifications?

Missing a proposal notification means missing the chance to be heard, and missing a final notification means paying below the revised rate. Our labour law compliance team can track the notifications that apply to your establishments and update your payroll and records on time.

Key takeaways

  • The Government must use either a committee or published proposals (not less than two months) when fixing or revising minimum rates.
  • A committee has equal employer and employee members, plus independent persons not exceeding one-third.
  • The final notification takes effect after three months unless it says otherwise.
  • On a revision by published proposals, the concerned Advisory Board must also be consulted.
  • Rates are reviewed or revised ordinarily at least every five years.

Read next

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 8

  • 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.

How long must proposals stay open?

The Government must specify a date not less than two months from the date of the notification (s.8(1)(b)).

When does a revised minimum wage take effect?

On the expiry of three months from the date of issue of the notification, unless the notification otherwise provides (s.8(3)).

Section 8: 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 Government must specify a date not less than two months from the date of the notification (s.8(1)(b)).

On the expiry of three months from the date of issue of the notification, unless the notification otherwise provides (s.8(3)).

Employer representatives, an equal number of employee representatives and independent persons not exceeding one-third of the total members (s.8(2)).

Where the Government proposes to revise rates by published proposals, it must also consult the concerned Advisory Board (proviso to s.8(3)).

Ordinarily at an interval not exceeding five years (s.8(4)).

No. The rates are in the notifications of the appropriate Government.