Labour law library
The provisions ShramSaathi uses, each with its source, version and effective date. Items marked Verification required must be checked against the official notification.
Eligibility and calculation of bonus
An employee drawing wages up to the notified amount who worked at least 30 days gets a minimum bonus of 8.33% of wages or ₹100, whichever is higher, up to 20%. Where wages exceed the notified calculation amount, bonus is calculated as if wages were that amount or the minimum wage, whichever is higher.
Time limit for payment of bonus
Bonus must be credited to the employee's bank account within eight months of the close of the accounting year.
Bonus eligibility ₹21,000 and calculation ceiling ₹7,000
Eligibility up to ₹21,000 per month; bonus calculated on ₹7,000 or the minimum wage, whichever is higher.
Deductions from wages
Only authorised deductions are allowed, and total deductions cannot exceed 50% of the wages.
Fines
Fines only for notified acts or omissions, after a chance to explain, and not more than 3% of wages for the period.
Equal remuneration — no gender discrimination
No discrimination on the ground of gender in wages or recruitment for the same or similar work.
Hours of work for minimum-wage employees
The appropriate Government may fix normal working hours, weekly rest and payment for the rest day.
Payment of minimum wages
No employer shall pay any employee less than the minimum rate of wages notified by the appropriate Government.
Fixation of minimum wages
The appropriate Government fixes minimum rates by skill, geographical area and other factors, subject to the floor wage.
Floor wage
The Central Government fixes a floor wage; State minimum wages cannot be lower.
Wages for overtime work
Work beyond the normal working day is paid at not less than twice the normal rate of wages.
Wage period
The employer fixes the wage period — daily, weekly, fortnightly or monthly — never more than a month.
Time limit for payment of wages
Monthly wages must be paid before the expiry of the 7th day of the following month. On removal, dismissal, retrenchment or resignation, wages are paid within two working days.
Registers and wage slip — Central Rules 2026
Employee register (Form I), register of wages (Form IV), wage slip (Form V) and attendance-cum-muster roll (Form IX), kept electronically or physically.
Definition of wages — 50% rule
"Wages" means basic pay, dearness allowance and retaining allowance. Excluded payments (HRA, conveyance, overtime, etc.) above one-half of the total remuneration are added back to wages.
Contract labour — applicability
The contract labour Part applies to establishments and contractors employing 50 or more contract workers.
Licensing of contractors
No contractor to whom the Part applies shall supply or engage contract labour except under a licence.
Letter of appointment
Issue a letter of appointment to every employee on appointment.
Annual leave with wages
A worker who has worked 180 days or more in a calendar year earns leave at one day for every twenty days of work.
Extra wages for overtime
Overtime is paid at twice the rate of wages.
Registers and returns — OSH Central Rules 2026
Form XIII employee register, Form XIV muster roll, Form XV wages, Form XVI wage slip, Form XVII annual return, Form XVIII half-yearly contractor return, Form XX leave register, Form XXIII experience certificate.
Registration of establishment
Every employer of an establishment to which the Code applies shall register it electronically.
Welfare facilities
Welfare facilities such as washing, first aid, canteen, rest rooms; crèche where more than fifty workers are ordinarily employed (s.24(3)).
Daily and weekly working hours
No worker shall work more than the notified hours (8 hours a day and 48 hours a week under Central rules).
Weekly and compensatory holidays
No worker shall work more than six days in a week.
Interest on delayed contributions — 12% p.a.
Simple interest at 12% per annum from the due date to the date of payment on any contribution or amount payable under the Code.
ESI coverage wage ceiling
Employees drawing wages up to ₹21,000 a month (₹25,000 for persons with disability) are covered; contribution continues to the end of the contribution period.
Gratuity
15 days' wages (wages ÷ 26) for every completed year of service; five years' continuous service required except on death or disablement; fixed-term employees are paid pro rata without the five-year condition — ShramSaathi settles them on an annual basis (minimum 1 year, configurable, verify).
Determination and payment of gratuity
Employer determines the amount, gives written notice and pays within 30 days of it becoming payable; interest is payable on delay.
Gratuity application and notice — SS Form IV and Form V
Employee/nominee applies in Form IV; employer replies with Form V (payment or rejection with reasons).
Crèche facility
Every establishment with fifty or more employees shall have a crèche facility within the prescribed distance.
EPF wage ceiling
Wage ceiling raised to ₹25,000 per month (reported).
Grievance Redressal Committee
Every industrial establishment employing 20 or more workers shall have one or more Grievance Redressal Committees.
Lay-off, retrenchment and closure — prior permission
Special provisions requiring prior permission apply to industrial establishments with 300 or more workers.
Retrenchment — notice to authority
Notice of retrenchment is served on the appropriate Government or the authority it specifies.
Standing orders
Chapter on standing orders applies to industrial establishments with 300 or more workers; model standing orders apply until the establishment's own are certified.
Model Standing Orders, 2026
Model Standing Orders for manufacturing, mining and service sectors — identity card, service card, service certificate within 10 days, classification of workers.
Notice before strike or lock-out
No strike or lock-out in breach of contract without the notice required under the Code.
Works Committee
An industrial establishment with 100 or more workers may be required to constitute a Works Committee.
Digital Personal Data Protection
Personal data of employees is processed with notice, for specified purposes, with security safeguards and rights to access, correction and erasure.