As per Draft Notification issued vide G.O.Rt.No.39, dated 13.02.2026 by the Labour, Factories, Boilers & Insurance Medical Services Dept.
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Introduction
- AP Payment of Wages Rules, 1937
- AP Minimum Wages Rules, 1960
and bring all wage‑related matters under one
unified code.
Objections/suggestions may be submitted
within 45 days from the date of publication through the official Labour
Dept. portal or e‑mail.
1️⃣ Chapter I – Preliminary & Definitions
Scope & Commencement
- Applicable across the entire State of Andhra Pradesh.
- Comes into force from date of publication in the Official
Gazette.
Key Definitions
The Code provides clarity on several
operational terms crucial for HR & compliance, including:
- Authority (for claims) – appointed
under Sec. 45
- Appellate Authority – under Sec. 49
- Inspector‑cum‑Facilitator – under
Sec. 51
- Committee – for minimum wage
fixation
- Family – expanded to include
dependent parents & in‑laws
- Skill Levels – Unskilled, Semi‑Skilled,
Skilled, Highly Skilled
These definitions serve as the foundation
for wage categorization, inspections, and dispute resolutions.
2️⃣ Chapter II – Minimum Wages
2.1 Criteria for Fixing Minimum Wages
The state government must use
scientifically‑defined parameters:
- Standard working‑class family = 1 earner + spouse + 2 children
- Caloric requirement = 2700 calories/day per consumption
unit
- 66 meters of cloth per family/year
- House rent = 10% of food & clothing
- Fuel, electricity, etc. = 20% of minimum wage
- Education, medical, contingencies = 25% of minimum wage
These guidelines ensure that wage fixation
is rational, transparent, and inflation‑responsive.
2.2 Calculation of Daily, Hourly &
Monthly Wages
- Daily → Hourly: divide by 8
- Daily → Monthly: multiply by 26
- Rounding rules: ≥0.5 round up, <0.5 ignore
For 5‑day week organisations (common in
corporates), hourly rate becomes the basis for calculating daily wage.
2.3 Skill Categorisation Committee
A technical committee reviews and updates
occupational skill levels.
Members include:
- Additional Commissioner/Joint Commissioner of Labour
(Chairperson)
- Labour Department officials
- Director of Employment
- CEO, AP Skill Development Corporation
- Employer/Employee representatives
- Technical wage experts
The committee is empowered to modify,
add or delete entries in the official “Schedule.”
2.4 Schedule of Occupations
A vast list of over 1000 job roles
across unskilled to highly skilled categories is included.
Examples:
This ensures AP industries have consistent
classification for wage payment.
3️⃣ Chapter II – Working Hours, Rest, and Overtime
3.1 Working Hours
- Daily working hours and spread‑over will be defined by the Commissioner
of Labour through general/special orders.
3.2 Weekly Rest
- One day of rest per week (Sunday traditionally).
- For less‑than‑6‑day weeks, both Saturday & Sunday
become rest days.
- Prior notice to employees is mandatory.
3.3 Substituted Rest Day
- If an employee works on rest day, a substituted rest day
must be given.
- Overtime applies.
- Must not work for more than 10 consecutive days without
a rest day.
3.4 Night Shifts
4️⃣ Chapter III – Payment of Wages
4.1 Wage Period
4.2 Deductions
4.3 Fines
- Prior approval from Deputy Commissioner of Labour
required.
- Notice of fines must be displayed in English & Telugu.
4.4 Deductions for Loss/Damage
4.5 Advances &Loans
5️⃣ Chapter IV – Advisory Board & Committees
This chapter establishes procedures for:
- State Advisory Board composition
- Meeting rules, quorum, voting, minutes
- Appointment of committees under Section 8
- Term of office (2 years), resignation, disqualification
The Board includes:
- Employer representatives
- Employee representatives
- Independent professionals
- State Government officials
One‑third of all members must be women.
6️⃣ Chapter V – Payment of Dues & Claims
6.1 Nomination (Form VII)
Employees must nominate family members for
receiving dues in case of death.
6.2 Un-disbursed Dues
If dues remain unpaid:
- Employer deposits amount with Deputy Commissioner of Labour
- Public notice issued for claimants
- After 7 years, amount transferred under AP Labour
Welfare Fund Act
6.3 Claims Procedure
- Claims can be filed in Form II
- Authority issues notice via Form VIII
- Ex‑parte decision possible if employer does not appear
6.4 Appeals
7️⃣ Chapter VI – Registers & Wage Slip
Employers must maintain:
Mandatory Registers (physical or
electronic):
- Form I – Employee Register
- Form IV – Wages, Overtime, Fines
& Deductions
- Form IX – Attendance & Muster
Roll
Registers must be preserved for 5 years.
Wage Slip (Form V)
8️⃣ Chapter VII – Miscellaneous Provisions
8.1 Contract Labour – Principal Employer
Responsibility
Principal employer must ensure:
8.2 Annual Returns
Employers must file annual returns
electronically through OSHWC Code formats.
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Summary – Why These Rules Matter for Employers & HR
These draft rules:
As a Manager–HR, these rules
directly impact:
- Wage structuring
- Payroll compliance
- Contract labour management
- HR documentation practices
- Internal audit & labour inspections
