Notification Record & Forms
Notification details and the forms every employer needs, in one place.
- Issuing authority
- Chandigarh Administration, Labour Department, Chandigarh, under powers of the Administrator, UT Chandigarh
- Notified
- Draft dated 28 December 2021, published in the Official Gazette for objections and suggestions; final notification not independently confirmed
- Objection window
- 45 days from the date of publication in the Official Gazette
- Legal basis
- Section 67(2) of the Code on Wages, 2019 (Act No. 29 of 2019), read with sub section (1) of Section 67
- Supersedes
- Payment of Wages Rules, 1937 and Minimum Wages Rules, 1950, as applicable to Chandigarh
- Current Status
- Still a draft; employers should verify the current status directly with the Chandigarh Labour Department
The Code on Wages, 2019 brought four old wage laws, the Minimum Wages Act 1948, the Payment of Wages Act 1936, the Payment of Bonus Act 1965 and the Equal Remuneration Act 1976, under one Central law. Once a state or Union Territory notifies its own rules under this Code, those rules take over the day to day mechanics, how minimum wages are calculated, when wages must be paid, what forms and registers an employer must keep, and how disputes and offences are handled locally. Chandigarh released its draft wage rules on 28 December 2021. This guide walks through what the draft says for employers operating in the Union Territory.
Forms under the State Rules
Due Dates
Compliance deadlines, forms and how often each one recurs.
| Compliance | Form | Compliance Frequency | Due Date |
|---|---|---|---|
| Maintain register of wages, overtime, fine, deduction and advances | Form I (Rules 17, 43(1), (2), (3)) | Continuous | Updated every wage period, preserved for 5 years |
| Maintain employee register | Form IV (Rule 43(3)) | Continuous | Updated whenever an employee joins or exits |
| Issue wage slip to every employee | Form V (Rule 44) | Every wage period | On or before the day wages are paid |
| File annual return | Form VI (Rule 45) | Annual | For the year ending 31 December, filed electronically |
| Submit statistics on minimum wages, payment of wages and bonus | Not applicable (Rule 46) | As required | As directed by the Chandigarh Administration and the Labour Bureau |
| Revise dearness allowance | Not applicable (Rule 5) | Twice a year | Before 1 April and before 1 October every year |
| Grant weekly day of rest | Not applicable (Rule 7) | Weekly | At least one rest day in every 6 working days |
| Deposit undisbursed wages with the notified officer | Not applicable (Rule 38) | Event based | Within 15 days after expiry of 6 months from the date wages became payable |
| Deposit dues payable after an employee's death or disappearance | Not applicable (Rule 37) | Event based | Within 3 months from the date the amount became payable |
| Disburse deposited dues to the nominee | Not applicable (Rule 37) | Event based | Within 2 months of the date the amount was deposited |
| Preserve wage and employee registers | Form I, IV (Rule 43(4)) | Continuous | 5 years from the last entry |
| Recover excess deductions in installments | Not applicable (Rule 11) | Event based | Recovery in any month capped at 50 percent of wages |
| Give opportunity of hearing before deduction for damage or loss | Not applicable (Rule 16) | Event based | Explanation to be given within 15 days of the deduction |
Key Provisions
What changed under the Code, and what it means for payroll.
Old Law vs. New Law
What employers followed before, against what applies now — point matched against point.
| On this point | Before — earlier law | Now — the new Code |
|---|---|---|
| Governing law | Minimum Wages Act 1948 and Payment of Wages Act 1936, applied through the Minimum Wages Rules 1950 and Payment of Wages Rules 1937 | Code on Wages 2019, applied through the Chandigarh Code on Wages Rules 2021 |
| Wage fixation criteria | No detailed statutory formula for what goes into a minimum wage | Rule 3 fixes exact criteria, 3 consumption units, 2700 calories a day, 66 metres of cloth a year, and fixed shares for housing, fuel and welfare needs |
| Occupation categorisation | Based on scheduled employment lists notified separately for different industries | Rule 4 groups all occupations into 4 uniform skill categories, unskilled, semi skilled, skilled and highly skilled, under one Schedule A |
| Normal working day | Hours of work governed separately under laws like the Factories Act | Rule 6 fixes one uniform 8 hour normal working day with a 12 hour spread over limit |
| Wage slip | Not uniformly mandatory across all establishments | Rule 44 makes issuing a wage slip in Form V compulsory for every employee, every wage period |
| Payment through contractors | No dedicated rule fixing principal employer liability for contractor default | Rule 52 makes the principal employer liable to pay wages in full if the contractor fails or delays |
| Records | Separate registers maintained under the old Payment of Wages Rules and Minimum Wages Rules | Rule 43 consolidates records into one Wages and Advance Register (Form I) and one Employee Register (Form IV) |
| Deduction limit | Deduction ceiling governed under the Payment of Wages Act without a dedicated carry forward mechanism | Rule 11 fixes a clear 50 percent monthly cap with a carry forward and installment recovery mechanism |
| Repealed rules | Payment of Wages Rules 1937 and Minimum Wages Rules 1950 were the operative rules | Rule 53 repeals both, though actions already taken under them continue to be valid |
Applicability
Who the Code covers, and who gets special or exempt treatment.
Covered
- Every employer and employee in an establishment in the Union Territory of Chandigarh to which the Code on Wages 2019 applies
- Employees in scheduled and non scheduled employments once minimum wages are notified for their category
- Employers using contract labour, who face liability if the contractor fails to pay wages on time
- Establishments in metropolitan, non metropolitan or rural areas, each assessed separately for minimum wage fixation
- Agricultural labour, covered under the same monthly wage period as other employees
- Employees in hotels, restaurants, tea stalls, liquor vends and domestic work, subject to special meal and lodging deductions
Exempted / special treatment
- Apprentices engaged under the Apprentices Act 1961 are excluded from the definition of employee
- Categories not yet listed in Schedule A follow the wages fixed for the class where they can be most accurately placed
- None; principal employer liability under Rule 52 applies regardless of contractor default
- None specified; area classification affects the wage rate, not whether the rules apply
- Hours of work provisions for agricultural employment may be modified by the Chandigarh Administration
- Employees getting two meals, tea and lodging get Rs 1,765 less than the fixed minimum wage for their category; without lodging, Rs 500 less
Frequently Asked Questions
Answers to what employers ask us most about this rule.
What is the Code on Wages (Chandigarh) Rules, 2021?
It is a set of draft rules published by the Chandigarh Administration on 28 December 2021 to implement the Code on Wages, 2019 in the Union Territory of Chandigarh. The rules cover how minimum wages are worked out, hours of work, weekly rest, deductions, bonus, wage disputes, and the forms and registers an employer must keep.
Has the Chandigarh Code on Wages Rules 2021 come into final force?
As of August 2026, no independently confirmed final gazette notification has surfaced. The rules were published as a draft with a 45 day objection window that closed long ago. Employers should confirm the current status directly with the Chandigarh Labour Department before relying on it for a compliance decision.
Which older laws do these rules replace in Chandigarh?
Rule 53 repeals the Payment of Wages Rules, 1937 and the Minimum Wages Rules, 1950 as applicable to Chandigarh. Any order or action already taken under those old rules continues to be valid under the corresponding provision of the new rules.
Who must comply with these rules?
Every employer and employee covered under the Code on Wages, 2019 in an establishment located in the Union Territory of Chandigarh. Apprentices engaged under the Apprentices Act, 1961 are not treated as employees for this purpose.
How is the minimum wage calculated under these rules?
Rule 3 sets out the components, a standard family of 3 consumption units, a net intake of 2700 calories a day per unit, 66 metres of cloth a year for the family, and fixed percentage shares of the minimum wage for housing rent, fuel and electricity, and for children's education, medical needs and other contingencies.
How are occupations classified for wage purposes?
Rule 4 groups occupations into 4 categories, unskilled, semi skilled, skilled and highly skilled, listed in Schedule A. A technical committee led by the Labour Commissioner advises the Chandigarh Administration on adding, deleting or modifying entries in this list.
What is the normal working day and weekly rest day?
Rule 6 fixes 8 hours as a normal working day, with the total spread, including rest breaks, not exceeding 12 hours. Rule 7 entitles every employee to one rest day in every 6 working days, ordinarily Sunday, though the employer may fix a different day for a class of employees.
Is issuing a wage slip mandatory?
Yes. Rule 44 requires every employer to issue a wage slip in Form V to each employee, electronically or otherwise, on or before the day wages are paid for that wage period.
What records must an employer maintain?
Rule 43 requires the Register of Wages, Overtime, Fine, Deduction for Damage and Loss and Advance Register in Form I, and the Employee Register in Form IV. Both must be preserved for 5 years from the last entry and produced to the Inspector cum Facilitator on demand.
Who is liable if wages are paid through a contractor?
Under Rule 52, the contractor is responsible for paying workers on time and for complying with related obligations such as EPF and ESI. If the contractor fails to pay within the prescribed period or pays short, the principal employer becomes liable to pay the wages in full after verification.
What happens if wages cannot be paid to an employee?
If an amount is due after an employee's death or because their whereabouts are unknown, Rule 37 requires the employer to deposit it with the officer notified by the Chandigarh Administration within 3 months, who then disburses it to the nominee within 2 months of deposit. Rule 38 sets a similar deposit process for other undisbursed dues, and Rule 39 provides that unclaimed amounts lapse to the Chandigarh Labour Welfare Board after 7 years.
How often is dearness allowance revised?
Rule 5 requires the cost of living allowance to be worked out twice a year, once before 1 April and once before 1 October.
What is the penalty for paying less than minimum wage?
This falls under Section 54(1)(a) of the parent Code on Wages, 2019, which the Chandigarh rules operate under. A first offence attracts a fine up to Rs 50,000. A repeat offence within 5 years can mean imprisonment up to 3 months, a fine up to Rs 1,00,000, or both.
Can offences under these rules be compounded?
Yes. Rule 50 lets a notified Gazette Officer compound an offence for 50 percent of the maximum fine prescribed under the Code, provided the offence is compoundable and the accused agrees. Rule 51 sets out the Form VII application for compounding offences under Section 56(4) of the Code.
What should an employer do if unsure about the rules' current status?
Since these rules have remained in draft form for an extended period without a confirmed final notification, employers with establishments in Chandigarh should check directly with the Chandigarh Labour Department, Labour Welfare Centre Building, Sector 30 B, or consult a labour law advisor before treating any specific rule number as final for compliance purposes.
Sources
Where every fact on this page comes from.
- → Chandigarh Code on Wages Rules, 2021, Notification dated 28 December 2021, Chandigarh Administration, Labour Department (official)
- → The Code on Wages, 2019 (Act No. 29 of 2019), Ministry of Labour and Employment, Government of India (official)
- → Central Government notification bringing the Code on Wages 2019 into force from 21 November 2025 (official)
For informational purposes only — not legal advice. State rules referenced here are subject to change on final notification. Verify current status with our compliance team before acting.