Andhra Pradesh Notifies the Code on Wages Rules, 2026
The Government of Andhra Pradesh has officially notified the Code on Wages (Andhra Pradesh) Rules, 2026 under the provisions of the Code on Wages, 2019. The Rules were published in the Andhra Pradesh Gazette on 29 June 2026 and came into effect from the date of their final publication, unless otherwise specified.
The new Rules establish a comprehensive framework for wage administration, including minimum wages, payment of wages, working hours, overtime, wage slips, deductions, statutory registers, nomination, and compliance obligations for employers across the State.
Effective Date
29 June 2026 (Date of Final Publication in the Andhra Pradesh Gazette)
Major Highlights
1. Minimum Wages (Rule 3)
Employers are required to:
Pay wages not less than the Government-notified minimum wages.
Classify employees correctly as:
Unskilled
Semi-skilled
Skilled
Highly Skilled
Calculate monthly wages based on:
Monthly Wage = Daily Wage × 26 Days
No employee should receive wages below the prescribed minimum wage.
2. Variable Dearness Allowance (VDA) – Rule 4
Employers must revise minimum wages by updating the Variable Dearness Allowance (VDA) twice every year:
1 April
1 October
The VDA revision should be implemented in accordance with the applicable Consumer Price Index (CPI).
3. Working Hours (Rule 5)
The Rules prescribe:
Maximum 8 working hours per day
Maximum 48 working hours per week
Any work performed beyond these limits is treated as overtime.
4. Overtime Wages (Section 14)
Employees working beyond the prescribed working hours must be paid:
Double the ordinary rate of wages (2× wages)
Employers should also maintain proper overtime records in:
Attendance Register
Wage Register
5. Weekly Rest Day (Rule 6)
Every employee is entitled to:
One weekly day of rest.
If an employee works on the weekly rest day:
A substitute rest day must be provided.
Overtime wages should be paid wherever applicable.
Employees should not be required to work continuously for more than 10 days without a weekly rest.
6. Payment of Wages (Rule 10)
Employers should:
Pay wages on or before the 7th day of the succeeding month (where applicable under the Rules and the Code).
Prefer payment through:
Bank transfer
Online payment
The wage register should reconcile with bank payment records.
7. Wage Deductions (Rule 12)
The Rules provide safeguards regarding deductions:
Total deductions should not exceed 50% of wages.
Before making certain deductions:
Issue notice to the employee.
Provide an opportunity for explanation.
Proper procedures must be followed before any deduction is effected.
8. Statutory Registers (Rule 42)
Employers should maintain prescribed registers, including:
Employee Register (Form I)
Wage Register (Form IV)
Attendance/Muster Roll (Form IX)
These records should be updated regularly and preserved for five years.
9. Wage Slip (Rule 43)
Employers are required to issue wage slips in Form V before or at the time of wage payment.
The wage slip should include details of:
Earnings
Overtime
Deductions
Net wages
10. Fine and Damage Deductions (Rules 15–17)
Before imposing deductions for fines or damage:
Provide prior notice.
Give the employee an opportunity to explain.
Follow the prescribed procedure under the Rules.
11. Nomination Form (Rule 36)
Employers should obtain Nomination Form (Form VII) from employees to facilitate settlement of dues in the event of death.
12. Display of Notices (Rule 14)
Employers are required to display notices relating to:
Acts and omissions attracting fines
Other prescribed information
These notices should be displayed in:
English
The local language understood by employees.
Employer Compliance Checklist
✔ Pay notified minimum wages.
✔ Revise VDA on 1 April and 1 October.
✔ Ensure working hours comply with statutory limits.
✔ Pay overtime at double wages.
✔ Provide weekly rest days.
✔ Pay wages within the prescribed time.
✔ Issue wage slips in Form V.
✔ Maintain all prescribed registers.
✔ Obtain employee nomination forms.
✔ Display statutory notices.
✔ Follow due process before making deductions.
Conclusion
The Code on Wages (Andhra Pradesh) Rules, 2026 introduce a structured framework to ensure timely payment of wages, fair working conditions, proper maintenance of statutory records, and greater transparency in wage administration.
All employers operating in Andhra Pradesh should review their payroll systems, HR policies, attendance processes, wage registers, and statutory documentation to ensure compliance with the new Rules.
At HRInfo.in, we will continue to publish practical guides, compliance checklists, downloadable formats, and HR tools to help organizations implement the Code on Wages (Andhra Pradesh) Rules, 2026 effectively.
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