Notification Record & Forms

Notification details and the forms every employer needs, in one place.

Issuing authority
Department of Labour, Employment and Training, UT of Lakshadweep Administration
Notified
Kavaratti, dated March 2026, Draft notification, File No. 08/01/2024 LE&T
Objection window
45 days from the date of draft publication, now closed
Legal basis
Section 67 of the Code on Wages 2019 (Central Act No. 29 of 2019) read with Section 2(d)(ii) and Section 2(w) of the Code
Supersedes
Rules earlier framed under the Minimum Wages Act 1948 as applicable to the UT of Lakshadweep, once these rules are finally notified
Approval reference
Approved with the approval of the Hon'ble Administrator vide diary no. 423 dated 15 March 2026, File No. 08/01/2024 LE&T

The Union Territory of Lakshadweep Administration has released the Draft Code on Wages (Lakshadweep) Rules 2025 through its Department of Labour, Employment and Training. These rules explain how minimum wages get calculated, when dearness allowance is revised, working hours, weekly rest days, wage slips, bonus related set on and set off, and the Advisory Board that oversees wage matters in the islands. Once finally notified, these rules will replace the rules earlier framed under the Minimum Wages Act 1948 that currently apply to Lakshadweep.

Forms under the State Rules

Form IEmployerRule 17 and Rule 41(1), (2) and (3)
Register of Wages, Overtime, Fine, Deduction for Damage and Loss
Form IVEmployerRule 41(3)
Employee Register
Form VEmployerRule 42
Wage Slip

Due Dates

Compliance deadlines, forms and how often each one recurs.

ComplianceFormCompliance FrequencyDue Date
Maintain wages, overtime, fine and deduction registerForm I (Rule 43(1) and (3))ContinuousUpdate every wage period, preserve for 5 years after last entry
Maintain employee registerForm IV (Rule 43(3))ContinuousUpdate on joining or exit, preserve for 5 years after last entry
Issue wage slip to every employeeForm V (Rule 44)Every wage periodOn or before the date of payment of wages
Revise dearness allowanceNot applicable (Rule 5)Twice a yearBefore 1 April and before 1 October every year
Grant a weekly day of restNot applicable (Rule 7)WeeklyOrdinarily Sunday, or any other day fixed by the employer with notice
Intimate deduction made under proviso to Section 20(2)Not applicable (Rule 15)Event basedWithin 10 days from the date of such deduction
Intimate deduction for damage or loss to an employeeNot applicable (Rule 16(ii))Event basedWithin 15 days from the date of such deduction
File annual returnNot applicable (Rule 45)AnnualElectronically, in the format prescribed under the Central Code on Wages Rules
Submit statistics on wages, payment and bonusNot applicable (Rule 46)PeriodicAs required, from time to time, to the UT Administration and Labour Bureau

Key Provisions

What changed under the Code, and what it means for payroll.

💡Key Provisions12 tracked
Manner of calculating minimum wagesRule 3
Minimum wages are fixed on a day basis, keeping in view a standard family of 3 consumption units, 2700 calories a day, 66 metres cloth a year, 10 percent for housing rent, 20 percent for fuel, electricity and other items, and 25 percent for children's education, medical needs, recreation and contingencies
Norms for fixation of minimum rate of wagesRule 4
The UT Administration must set up a Technical Committee to advise on categorizing occupations into unskilled, semi skilled, skilled and highly skilled, listed in Schedule A
Revision of dearness allowanceRule 5
Dearness allowance and the cash value of concessions on essential commodities must be worked out twice a year, before 1 April and before 1 October
Normal working dayRule 6
A normal working day means 8 hours of work with rest intervals not exceeding 1 hour in total, and the spread over must not exceed 12 hours on any day
Weekly day of restRule 7
Every employee gets one rest day a week, ordinarily Sunday, with defined rules for a substituted rest day and a cap of 10 consecutive working days without rest
Extent and conditions for exempted categoriesRule 9
For emergency, intermittent or technically necessary work, the spread over may extend up to 16 hours a day, but actual working hours are capped at 9 hours
Longer wage periodRule 10
The wage period for the purpose of fixing minimum wages is by the month
Recovery of excess deductionsRule 11
Where authorised deductions cross 50 percent of wages, the excess amount is carried forward and recovered from later wage periods, capped at 50 percent of wages in any month
Intimation of deductionRule 15
An employer making a deduction under the proviso to Section 20(2) must intimate the Inspector cum Facilitator within 10 days, explaining the reason
Set on and set off of bonusRule 19
Calculation of set on or set off, gross profits and further deductions for bonus purposes must follow the manner prescribed by the Central Government
Registers and wage slipRule 43 and 44
Employers must maintain Form I and Form IV registers and issue Form V wage slips, electronically or otherwise, and preserve records for 5 years
Timely payment of wages through contractorRule 52
A contractor must pay workers before the wage payment due date; if the contractor fails or short pays, the principal employer becomes liable to pay the wages in full

Old Law vs. New Law

What employers followed before, against what applies now — point matched against point.

On this pointBefore — earlier lawNow — the new Code
Governing lawRules framed under the Minimum Wages Act 1948, as applicable to LakshadweepCode on Wages (Lakshadweep) Rules 2025, framed under the Code on Wages 2019
Wage related lawsSeparate laws covered minimum wages, payment of wages, bonus and equal remunerationAll four wage laws are merged into a single Code on Wages framework
Occupation classificationScheduled employments notified separately under the Minimum Wages ActOccupations classified into 4 categories, unskilled, semi skilled, skilled and highly skilled, listed in Schedule A
Minimum wage fixing criteriaNo single uniform criteria was prescribed in the earlier Lakshadweep rulesUniform criteria prescribed, including 3 consumption units, 2700 calories a day, 66 metres cloth a year, and fixed percentages for housing, fuel and contingencies
Dearness allowance revisionNo fixed statutory interval was specifiedMust be revised twice a year, before 1 April and before 1 October
Inspecting authorityInspector appointed under the Minimum Wages ActInspector cum Facilitator, operating under a formal inspection scheme framed under Rules 47 and 48
Advisory BoardMinimum Wages Advisory Board under the earlier ActUT of Lakshadweep Advisory Board, with defined composition, a 2 year term and a cap of one third independent members, under Rules 20 to 36
Claims and appeal mechanismClaims authorities functioned separately under the Minimum Wages Act and Payment of Wages ActA single authority under Section 45 and an appellate authority under Section 49, using Form II and Form III
Offence compoundingProsecution followed the respective wage laws, with no structured compounding routeStructured compounding by a Gazetted Officer for up to 50 percent of the maximum fine, under Rules 50 and 51

Applicability

Who the Code covers, and who gets special or exempt treatment.

Covered

  • All establishments and employments within the UT of Lakshadweep to which the Code on Wages 2019 applies
  • Employees engaged in unskilled, semi skilled, skilled and highly skilled occupations classified under Schedule A
  • Employers paying minimum wages fixed on a day basis under Rule 3
  • Establishments engaging workers through a contractor, for timely payment of wages under Rule 52
  • Employees entitled to a weekly day of rest under Rule 7
  • Establishments required to maintain registers and issue wage slips under Rules 43 and 44

Exempted / special treatment

  • No blanket exemption is stated in these draft rules
  • An occupation not specifically listed is placed in the category it most closely matches, as decided by the Technical Committee
  • None specified for employers paying minimum wages fixed on a day basis
  • None; the principal employer stays liable if the contractor fails to pay or short pays
  • Employees in agricultural employment may follow modified working hour provisions under Rule 6(3), as the Government may determine from time to time
  • None specified for establishments required to maintain registers and issue wage slips

Frequently Asked Questions

Answers to what employers ask us most about this rule.

What is the Code on Wages (Lakshadweep) Rules 2025?

It is a draft set of rules proposed by the UT of Lakshadweep Administration to implement the Code on Wages 2019 in the islands. It covers minimum wages, dearness allowance, working hours, weekly rest, wage slips and bonus related calculations.

Has the Code on Wages (Lakshadweep) Rules 2025 been finally notified?

Not as of August 2026. The rules were published in draft form for objections and suggestions, and the 45 day objection window has closed, but no separate final notification could be traced. Employers should confirm the current status with the Department of Labour, Employment and Training.

Which earlier law do these rules replace?

Once finally notified, these rules will replace the rules framed under the Minimum Wages Act 1948 that currently apply to Lakshadweep.

Which department issued these rules?

The Department of Labour, Employment and Training under the UT of Lakshadweep Administration, based at Kavaratti.

How will minimum wages be calculated under these rules?

Minimum wages are fixed on a day basis, keeping in mind a family of 3 consumption units, a net intake of 2700 calories a day, 66 metres of cloth a year, and fixed percentages for housing rent, fuel and other expenses, and children's education, medical needs and contingencies.

How are occupations classified under these rules?

A Technical Committee advises the UT Administration on classifying every occupation into one of 4 categories, unskilled, semi skilled, skilled or highly skilled, listed in Schedule A.

How often is dearness allowance revised?

Twice a year, before 1 April and before 1 October, as set out in Rule 5.

What counts as a normal working day under these rules?

8 hours of work, with rest intervals not exceeding 1 hour in total, and the entire spread of the day not exceeding 12 hours.

Is every employee entitled to a weekly day of rest?

Yes. Every employee who has worked at least 6 continuous days for the same employer is entitled to a rest day, ordinarily Sunday, though the employer may fix another day with prior notice.

What happens if a contractor fails to pay wages on time?

Under Rule 52, if a contractor fails to pay wages within the prescribed period or makes a short payment, the principal employer becomes liable to pay the wages in full.

What records must an employer maintain under these rules?

Employers must maintain a Form I register covering wages, overtime, fines and deductions, and a Form IV employee register, and preserve both for 5 years after the last entry.

When should a wage slip be issued to employees?

On or before the date of payment of wages, in Form V, electronically or otherwise, as required under Rule 44.

What is the UT of Lakshadweep Advisory Board?

It is a board set up under Rule 20, made up of employer and employee representatives along with independent members, that advises the UT Administration on wage related matters.

What happens if an employer pays less than the minimum wage?

Under Section 54(1)(a) of the Code on Wages 2019, the employer is liable to a fine of up to Rs 50,000, rising to imprisonment of up to 3 months or a fine of up to Rs 1,00,000, or both, for a repeat offence within 5 years.

Can an offence under these rules be settled without going to court?

Most offences under the Code, other than those punishable with imprisonment only or with imprisonment and fine together, can be compounded by a Gazetted Officer for up to 50 percent of the maximum fine, using Form VI or Form VII.

Sources

Where every fact on this page comes from.

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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.