Notification Record & Forms
Notification details and the forms every employer needs, in one place.
- Issuing authority
- Government of Punjab, Department of Labour
- Notified
- 29 December 2025 (published as draft rules in the Official Gazette)
- Objection window
- 30 days from the date of publication in the Official Gazette (objections/suggestions were invited up to on or around 28 January 2026)
- Legal basis
- Sub-section (2) of Section 67 of the Code on Wages, 2019 (Central Act No. 29 of 2019), read with sub-section (1) of Section 67
- Supersedes
- The Punjab Payment of Wages Rules, 1937 and the Punjab Minimum Wages Rules, 1950 (repealed under Rule 55, subject to a savings clause for actions already taken)
- Status as of July 2026
- Still at draft stage in the public record reviewed for this article. The 30-day objection period has lapsed, but a separate final notification bringing these rules into force could not be confirmed as of July 2026. Employers should check the Punjab Labour Department website (pblabour.gov.in) for the latest status before relying on these provisions for compliance.
The Punjab government has published a new set of rules called the Code on Wages (Punjab) Rules, 2026. These rules explain how the Code on Wages, 2019 — a central law passed by Parliament — will actually work inside Punjab. In simple words, the Code on Wages, 2019 merged four old central wage laws (the Payment of Wages Act, the Minimum Wages Act, the Payment of Bonus Act, and the Equal Remuneration Act) into one single law. Every state, including Punjab, now has to write its own rules to put that central law into practice on the ground. That is exactly what this draft notification does.
These rules matter to anyone who runs a business in Punjab, manages HR or payroll, or simply works for a living in the state. They cover how minimum wages are calculated, when dearness allowance is revised, how deductions and fines are handled, what registers and forms an employer must keep, how unpaid wages of a deceased worker are settled, and what happens if an employer breaks the rules.
Forms under the State Rules
Due Dates
Compliance deadlines, forms and how often each one recurs.
| Compliance | Form | Compliance Frequency | Due Date |
|---|---|---|---|
| Pay wages to employees | Monthly (monthly wage period fixed under Rule 11) | Before the 7th day after the wage period ends for establishments with fewer than 1,000 employees; before the 10th day for establishments with 1,000 or more employees | |
| Issue wage slip | Form V | Every wage period | On or before the date wages are paid |
| Intimate deduction made from wages | Form I | Each time a deduction is made | Within 10 days of the date of deduction, sent to the jurisdictional Inspector-cum-Facilitator |
| Explain deduction for damage/loss to the employee | Form I | Each time such a deduction is made | Within 15 days of the date of deduction |
| Revise dearness allowance / cost-of-living allowance | Twice a year | Before 1 April and before 1 October every year | |
| Deposit unpaid wages of a deceased employee | As and when applicable | Within 1 month of the wages becoming payable, deposited with the Punjab Labour Welfare Board | |
| Deposit other undisbursed wages | As and when applicable | Within 15 days after the expiry of 3 months from the date the amount became payable | |
| Preserve wage/fine/deduction registers | Form I & Form IV | Ongoing | Kept for at least 5 years after the last entry |
| File the Unified Annual Return | Form VII | Annually | Once every year, filed electronically (exact calendar date to be notified separately) |
| Submit wage/bonus statistics if asked | As required by the State Government | As per the timeline specified by the government in each request |
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 framework | Separate Punjab Payment of Wages Rules, 1937 and Punjab Minimum Wages Rules, 1950, under two different central Acts | One single set of rules — the Code on Wages (Punjab) Rules, 2026 — under one central law, the Code on Wages, 2019 |
| Minimum wage formula | Fixed under the old Minimum Wages Act framework without a single codified state formula in these rules | A detailed, codified formula: 3 consumption units, 2,700 calories/day, 66 metres cloth/year, plus fixed percentages for housing, fuel and miscellaneous expenses |
| Dearness allowance revision | Revision practice varied and was not tied to a fixed twice-yearly schedule in state rules | Fixed, mandatory revision twice a year — before 1 April and before 1 October — linked to average CPI |
| Wage period | Governed separately under the Payment of Wages Rules, 1937 | Standardised as a monthly wage period under Rule 11 of the new rules |
| Registers and records | Separate registers maintained under each of the two old rule sets | Consolidated into Form I (wages/fines/deductions) and Form IV (employee register) under one framework |
| Annual reporting | Separate returns for wages-related and other labour compliances | One Unified Annual Return (Form VII) that also feeds into Social Security Code reporting |
| Inspecting authority | "Inspector" with primarily inspection/enforcement powers | "Inspector-cum-Facilitator" with both inspection and advisory/facilitation powers |
| Settling minor offences | No uniform compounding (settlement) mechanism across both old rule sets | Uniform compounding option at 50% of the maximum fine, via Form VI, under Rule 52 |
| Advisory board | Separate Minimum Wages Advisory Board structure | One State Advisory Board with equal 7:7 employer-employee representation plus independent members |
| Unclaimed wages of deceased workers | No single detailed distribution formula across both old rule sets | A clear, rule-based distribution formula to legal heirs (spouse, children, parents, siblings) under Rule 41 |
| Contractor liability | Addressed differently across separate laws | Directly fixes principal-employer liability for wages and bonus if the contractor defaults (Rules 53 & 54) |
Applicability
Who the Code covers, and who gets special or exempt treatment.
Covered
- Every establishment and employment across the whole State of Punjab that falls within the scope of the Code on Wages, 2019 — factories, shops and commercial establishments, industrial establishments, and other workplaces employing wage-earning employees
- Employees and workers as defined under the Code on Wages, 2019, including employees hired directly and those hired through a contractor
- Both organised-sector and unorganised-sector establishments engaged in scheduled and non-scheduled employments once minimum wages are notified for that employment
- Principal employers and contractors, who share responsibility for paying wages and bonus to contract labour on time
Exempted / special treatment
- Employees engaged in agricultural work — Rule 7(3) allows the State Government to modify the normal-working-day and rest-day provisions for agricultural employment
- Domestic workers and similar categories who are provided meals and lodging by the employer may be paid a reduced minimum wage under the related minimum wage notification (a separate but connected notification, not these rules themselves)
- Employees already being paid more than the applicable minimum wage — the employer only becomes liable to top up wages if actual pay falls below the notified minimum
- Certain categories of employees engaged in preparatory, intermittent, or emergency-driven work get modified working-hour treatment under Rule 10, subject to daily caps
Frequently Asked Questions
Answers to what employers ask us most about this rule.
What are the Punjab Code on Wages Rules, 2026?
They are draft state-level rules published by the Punjab Department of Labour on 29 December 2025 to implement the central Code on Wages, 2019 within Punjab. They cover how minimum wages are calculated, wage payment timelines, deductions, registers, forms, the State Advisory Board, and penalties.
Have these rules come into force yet?
As of the information available for this article, they were still published as draft rules. The 30-day window for public objections has passed, but a confirmed final notification bringing them fully into force could not be verified as of July 2026. Check pblabour.gov.in for the current status.
Which older rules do these draft rules replace?
Rule 55 of the draft repeals the Punjab Payment of Wages Rules, 1937 and the Punjab Minimum Wages Rules, 1950, while protecting any order or action already taken under those older rules.
Who has to follow these rules?
Any employer running an establishment or employment in Punjab that is covered under the Code on Wages, 2019 — this includes factories, shops, commercial establishments and other industrial or business premises employing wage-earning staff, whether hired directly or through a contractor.
How will my minimum wage be calculated under the new rules?
Rule 3 uses a family-needs formula: it assumes a standard working-class family of three consumption units, a daily food intake of 2,700 calories, 66 metres of cloth a year, and adds fixed percentages for housing, fuel/electricity and other expenses on top of food and clothing costs.
How often will dearness allowance (DA) be revised?
Twice a year — the Labour Commissioner, Punjab must review and revise DA and the cost-of-living allowance before 1 April and before 1 October each year, based on the average Consumer Price Index for the preceding six months.
What counts as a normal working day?
Eight hours of actual work, with rest breaks that do not add up to more than one hour, and a total spread — work plus breaks — that does not go beyond twelve hours in a day.
Is Sunday compulsorily the weekly rest day?
Sunday is the default, but an employer can fix a different day of the week as the rest day for any employee or group of employees, as long as proper notice is displayed and the employee gets a genuine weekly day off.
How much can an employer deduct from an employee's wages?
Deductions are regulated closely. Under Rule 13, if total deductions cross 50% of wages in a period, the extra amount is carried forward and recovered later — the recovery in any single month still cannot exceed 50% of that month's wages.
What forms and registers must an employer maintain?
At minimum, Form I (wages, overtime, fines, deductions, advances), Form IV (employee register), and Form V (wage slips issued to every employee). Employers must also file Form VII, the Unified Annual Return, once a year.
When must a wage slip be issued to employees?
On or before the date the wages are actually paid, for every wage period, under Rule 46.
What happens to the unpaid wages of an employee who has died?
The employer must deposit the amount with the Punjab Labour Welfare Board — within one month if the delay is because the employee died or cannot be traced (Rule 39), or within fifteen days after three months for other undisbursed dues (Rule 40). The Board then pays the legal heirs using a fixed distribution formula set out in Rule 41.
Can an employer settle a violation instead of facing prosecution?
Yes, for compoundable offences. Under Rule 52, an accused person can apply in Form VI to settle the matter by paying 50% of the maximum fine prescribed for that offence.
What are the penalties for not following these rules?
Penalties follow the Code on Wages, 2019 itself, which prescribes fines and, for repeat or serious violations, imprisonment. The draft rules add the procedure — enquiry, summons and a right to be heard — that an officer must follow under Rule 51 before any penalty is imposed, and the compounding route under Rule 52 for settling many offences by payment of a fine.
How can I raise an objection or check the latest status of these rules?
Objections during the consultation period were to be sent to the Labour Commissioner, Punjab, Model Welfare Centre (Kirat Bhawan), Phase-X, Sector-64, Sahibzada Ajit Singh Nagar (Mohali), or by email. Since that window has closed, the best way to track the current status is to check the official Punjab Labour Department website, pblabour.gov.in.
Sources
Where every fact on this page comes from.
- → Government of Punjab, Department of Labour — Draft Notification No. LaboMisc/193/2025-42/1080, dated 29 December 2025, publishing the draft Code on Wages (Punjab) Rules, 2026 (official)
- → The Code on Wages, 2019 (Central Act No. 29 of 2019), Government of India (official)
- → Punjab Labour Department official website — pblabour.gov.in (for the latest status of this notification) (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.