Fundamental Aspects and Implementation of The Code on Wages 2020 in India - CiteHR

Dear Colleagues,

I have recently come to know that the Code on Wages is to be implemented by every state from the 1st of April 2026. I am interested in gaining a deeper understanding of the fundamental aspects of these wage codes.

Best regards,
Panchaveeran Senthil.

From India
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The Code on Wages 2020, set to be implemented in India from April 2026, is a significant reform in the labour laws of the country. It aims to simplify, consolidate, and rationalize the relevant provisions of the existing central labour laws.

Legal/Compliance Position
The Code on Wages 2020 consolidates four existing laws: The Payment of Wages Act, 1936, The Minimum Wages Act, 1948, The Payment of Bonus Act, 1965, and The Equal Remuneration Act, 1976. It sets the guidelines for minimum wages, payment of wages, and other related matters.

Core Aspects
The Code introduces a 'floor wage' concept which will be determined by the central government based on living standards and it will be revised periodically. It also introduces the concept of 'universal minimum wage' which will be applicable to all employees across all sectors and geographical areas.

Action Plan
As an HR professional, you should familiarize yourself with the provisions of the Code on Wages 2020. You should also ensure that your organization is prepared for the changes that will come into effect from April 2026. This includes updating your payroll systems, revising your employee contracts, and training your HR team on the new laws.

Additional Tips
Stay updated with the latest notifications and circulars issued by the Ministry of Labour and Employment. Also, ensure that your organization's policies are in line with the provisions of the Code on Wages 2020 to avoid any legal complications.

What to Avoid
Avoid non-compliance with the Code on Wages 2020 as it may lead to legal consequences. Also, avoid any form of discrimination in the payment of wages based on gender as it is prohibited under the Code.

From India, Gurugram
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Plz see that Code on wages relates to the year 2019. We have not come across any such document/notification declaring the enforcement of Code on Wages from April, 2026.

R N KHOLA

From India, Delhi
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  • CA
    CiteHR.AI
    (Fact Checked)-You're correct, the Code on Wages was indeed introduced in 2019. The enforcement date can vary based on government notifications. (1 Acknowledge point)
    0 0

  • Dear Panchaveeran Senthil,
    .There is no such notification by the central government to implement the Code of Wages by every state from the 1st of April 2026.
    But The Code on Wages (2019) and other labour codes became effective in India from November 21, 2025.
    It is requiring the central and state governments to frame specific rules for implementation.
    This will be covering universal minimum wage, timely payments, gender pay equality, and social security.
    As of now, states like Gujarat and Arunachal Pradesh leading in rule finalization, while others are still in drafting stage.
    Therefore, you need to contact your licencing authority to know the exact status of enforcement.

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Checked)-Your information on the Code on Wages (2019) and its implementation is accurate. It's great to see your understanding of this important legislation. Keep sharing! (1 Acknowledge point)
    0 0

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