Punjab notifies its Code on Wages Rules, 2026: minimum wage method, deductions, rest-day pay and registers
TaxByKK · Compliance News · taxbykk.com31 Oct 2026
In short
The Punjab Department of Labour has made the Code on Wages (Punjab) Rules, 2026, notification G.S.R. 61 dated 31 October 2026 (Extraordinary Gazette of 5 November 2026). The rules take effect on publication in the Official Gazette. They fix the method for working out minimum wages, set the rest-day, overtime and deduction procedures, and name the forms, registers and wage slips employers in Punjab must use. They repeal the Punjab Payment of Wages Rules, 1937 and the Punjab Minimum Wages Rules, 1950.
- Authority
- Government of Punjab, Department of Labour
- Notification
- G.S.R. 61/C.A.29/2019/S.67/2026 dated 31 October 2026 (Punjab Government Gazette Extraordinary, 5 November 2026)
- Type
- Rules
- Made under
- Section 67 of the Code on Wages, 2019
- Effective from
- Date of publication in the Official Gazette
- Repeals
- Punjab Payment of Wages Rules, 1937 and Punjab Minimum Wages Rules, 1950 (orders and actions under them are treated as made under the new rules)
- Applies to
- All establishments in Punjab to which the Code on Wages applies
What changed
| Item | Before | Now |
|---|---|---|
| Minimum wage fixing (rule 3) | Old Punjab Minimum Wages Rules, 1950 | Rate fixed per day on a standard family of three consumption units, 2,700 calories a day per unit, 66 metres of cloth a year, housing at 10% of food and clothing, fuel and sundries at 20% and education, medical and contingencies at 25% of the minimum wage; hourly rate = day rate ÷ 8, monthly = day rate × 26 |
| Review of dearness allowance (rule 5) | — | Labour Commissioner reviews basic wage and cost-of-living allowance twice a year, before 1 April and before 1 October, on the average Consumer Price Index of the previous six months |
| Hours and rest day (rules 6 to 8) | — | Eight-hour normal day; weekly total not above 48 hours; one rest day a week; work on the rest day needs a substituted rest day and no more than ten days in a row without rest; work on a rest day is paid at not less than twice the normal rate |
| Deductions (rules 14 to 20) | — | Total deductions above 50% of wages are carried to later wage periods, recovery in a month capped at 50%; fines, absence deductions and damage or loss deductions need a show-cause notice with seven days to reply and intimation within fifteen days of the deduction |
| Undisbursed dues of a deceased employee (rules 38 to 40) | — | Unpaid after three months, dues go to the Punjab Labour Welfare Board within fifteen days after that period; late deposit carries simple interest at 9% a year |
| Records (rules 44 and 45) | — | Employee register (Form I), wages register (Form IV), attendance register-cum-muster roll (Form IX), kept electronically or on paper for five years; wage slip in Form V on or before payment |
The rules set the method and procedure, not the rates. The document does not state any actual minimum wage amount, a wage payment due date (that stays with the Code itself) or a bonus rule. Returns are to be filed electronically in the forms under the Occupational Safety, Health and Working Conditions Code, 2020.
Who it applies to
- Employers and contractors with workplaces in Punjab
- Principal employers using contract labour
- Payroll teams, labour law advisers, CAs and CSs
- Employees and trade unions in Punjab
What to do
- Check wage slips, registers and attendance records against Forms I, IV, V and IX and keep them for five years.
- Review fine, absence and damage deduction practice: written show-cause with seven days to reply, and the 50% monthly limit.
- Display notices of acts and omissions in Hindi, English and Gurmukhi, and send a copy to the Inspector-cum-Facilitator.
- Note the three-month rule for dues of a deceased employee and nominations in Form VII.
- Principal employers should keep proof of contractor compliance, since they carry liability for unpaid contract-labour wages (rule 49).
Reference
Government of Punjab, Department of Labour, notification G.S.R. 61/C.A.29/2019/S.67/2026, 31 October 2026, Code on Wages (Punjab) Rules, 2026, under section 67 of the Code on Wages, 2019 (published in the Punjab Government Gazette Extraordinary of 5 November 2026).
Read the official PDF: Punjab notification G.S.R. 61Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What do the Punjab Code on Wages Rules, 2026 replace?
They repeal the Punjab Payment of Wages Rules, 1937 and the Punjab Minimum Wages Rules, 1950.
How much can an employer deduct from wages in Punjab?
Total deductions above 50% of wages are carried forward, and recovery in any month may not exceed 50% of that month's wages.
How is work on the weekly rest day paid?
If the employee gets a substituted rest day, the rest-day work is paid at the overtime rate, not less than twice the normal rate.
Do the rules state the minimum wage amounts?
No. They give the method and criteria; the rates are fixed separately by the State Government.