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The Occupational Safety, Health and Working Conditions (Andhra Pradesh) Rules, 2026 Final Notification

ANDHRA PRADESH OSH & WC RULES, 2026

Occupational Safety, Health and Working Conditions — Quick HR & Compliance Reference Guide

FINAL NOTIFICATION • 06 AUGUST 2026 • ANDHRA PRADESH

The Government of Andhra Pradesh has issued the final Occupational Safety, Health and Working Conditions (Andhra Pradesh) Rules, 2026 under the Occupational Safety, Health and Working Conditions Code, 2020.

The Rules apply throughout Andhra Pradesh and come into force on the date of their final publication in the Official Gazette.

📜

06 Aug 2026

Final Notification

🇮🇳

Andhra Pradesh

State-wide Applicability

🦺

OSH & WC

Safety • Health • Working Conditions

📅

01 February

Annual Return Due Date

◆ What HR & Compliance Teams Should Know

🏢 Establishment Registration (Rule 4)

Establishments covered by the Rules must hold a valid registration certificate. Applications are made electronically in Form-I within the prescribed period.

🩺 Annual Health Examination (Rule 12)

Employers in specified establishments must arrange free annual medical examination for employees/workers who have completed 40 years of age.

📄 Appointment Letter (Rule 8)

No employee shall be employed without an appointment letter containing the prescribed particulars.

⚠️ Accident Reporting (Rule )

Death, specified injuries, dangerous occurrences and occupational diseases trigger prescribed reporting requirements and timelines.

🦺 Safety Committee (Rule 22)

Specified factories and construction establishments must constitute Safety Committees with equal employer and worker representation.

⏱ Working Hours (Rule 24)

The Rules prescribe a maximum of 48 working hours in a week, together with provisions on daily spread, rest intervals, weekly rest and overtime.

01 Registration of Establishments (Rule 4)

No establishment shall function without holding a valid registration certificate granted by the Registering Officer.

Workers	Registration Fee
10 – 50	₹1,000
51 – 100	₹1,500
101 – 150	₹2,000
151 – 250	₹3,000
251 – 500	₹5,000
501 – 1,000	₹10,000
1,001 – 5,000	₹20,000
Above 5,000	₹30,000

Important: Late registration attracts an additional fee of 10% of the applicable registration fee for each month or fraction thereof of delay.

A complete application is to be issued a registration certificate within seven days. If the certificate is not issued within that period, the establishment is deemed to have been registered and the certificate is auto-generated.

02 Appointment Letter — Mandatory Particulars

No employee shall be employed unless an appointment letter is issued in the prescribed format.

✓ Employee name & date of birth

✓ Father's / Mother's name

✓ Aadhaar number — after obtaining consent

✓ LIN of establishment

✓ UAN / ESIC Insurance Number

✓ OSH & WC registration number

✓ Designation & skill category

✓ Date of joining

✓ Wages, Basic Pay & DA

✓ Other applicable allowances

✓ Social Security applicability

✓ Health check-up details

✓ Broad nature of duties

✓ Other prescribed information

Transition provision: Employees who did not previously receive an appointment letter containing the required particulars are to be issued the prescribed appointment letter within three months from the coming into force of the Rules.

03 Annual Health Examination — 40+ Employees (Rule 12)

Employers of specified establishments including factories, motor transport undertakings, plantations, beedi & cigar, sales promotion, working journalist and building & other construction establishments must arrange free-of-cost annual medical examination for every employee/worker who has completed 40 years of age.

The examination is to be conducted by a qualified medical practitioner in the prescribed Form-V format. The Rules also permit employers to avail the applicable ESIC medical examination facility where available under the relevant Social Security Rules.

04 Accident & Dangerous Occurrence Reporting

Death due to accident

Immediate electronic notice in Form-VI and telephone information to the specified authorities, with written confirmation within 12 hours.

Injury causing 48+ hours inability to work

Form-VI notice is to be sent within 12 hours after completion of the 48-hour period.

Dangerous occurrence

Specified dangerous occurrences require Form-VI reporting within 12 hours, whether or not personal injury occurs.

Fitness before return

An injured person shall not be allowed to return to work without a fitness certificate from a qualified medical practitioner.

HR / EHS Alert: Accident reporting should not be treated merely as an EHS activity. HR, Plant Administration, Security, Medical and Legal teams should have a clearly documented escalation mechanism.

05 Safety Committee — Who Must Constitute?

Establishment / Condition	Threshold
Factory	250 or more persons
Major Accident Hazard Installation	As specified under applicable MSIHC provisions
Factory engaged in hazardous process	50 or more persons
Factory engaged in dangerous operations	50 or more persons
Building & Other Construction Work	250 or more persons

The Safety Committee must have equal representation of employers and employees/workers. Adequate representation of women workers is also prescribed.

Meeting frequency: The Safety Committee shall meet as often as necessary and at least once every quarter.

The employer is required to act on Safety Committee recommendations within 15 days and submit a compliance report to the Inspector-cum-Facilitator.

06 Safety Officer — Applicability & Scale

No. of Safety Officers	Hazardous Process / BOCW	Other Factories
1	250 – 500	500 – 1,000
2	501 – 1,000	1,001 – 2,000
3	1,001 – 1,500	2,001 – 3,000
4	1,501 – 2,000	3,001 – 4,000
Additional	1 for every additional 1,000 or fraction	1 for every additional 2,000 or fraction

The Rules prescribe qualifications, practical experience, industrial safety qualification and language requirements for Safety Officers.

07 Working Hours, Weekly Rest & Overtime

⏱ Weekly Limit

Maximum 48 hours in a week.

☕ Rest Interval

Work should not exceed six hours without an interval of at least half an hour.

🕐 Daily Spread

The period of work including rest intervals should not spread over more than 12 hours in a day.

Overtime — Key Points

Overtime wages are payable at twice the rate of wages for overtime work covered by the Rule.

Overtime Limit	Maximum
Per Day	8 hours
Per Week	24 hours
Per Month	48 hours
Per Quarter	144 hours

08 Annual Leave with Wages

Employers are required to maintain the prescribed leave-with-wages records. On request, a worker must be provided with an abstract showing leave earned, leave allowed and balance standing to credit for the relevant period.

📋 Leave Record

Maintain prescribed leave-with-wages record.

🏥 Medical Certificate

Medical certificate may be required where prescribed.

💰 Exit / Death

Rules prescribe payment of the applicable leave balance in specified situations.

09 Registers, Records & Annual Returns

Record / Register	Prescribed Form
Register of Employees	Form VIII
Attendance / Muster Roll	Form VIII(A)
Workers, Wages, Overtime & Fine	Form IX
Leave with Wages	Form X
Accidents & Dangerous Occurrences	Form XI
Annual Return	Form XII

Record retention: Reports, registers and records are required to be preserved for five calendar years after the date of the last report or entry, subject to the Rules.

Annual Return: The employer's annual return in Form-XII is to be submitted online so as to reach the Inspector-cum-Facilitator not later than 1 February following the end of each calendar year.

10 Employment of Women — Night Work

The Rules prescribe conditions for employment of women during night hours / before 6:00 a.m. and beyond 7:00 p.m.

✓ Written consent of the woman employee

✓ Adequate transportation facility

✓ Well-lit workplace and access routes

✓ Convenient toilet, washroom and drinking facilities

✓ CCTV surveillance on the route to specified facilities

✓ Adequate sanitary napkins and safe disposal arrangements

✓ Safe, secure and healthy working conditions

✓ Emergency contact numbers displayed

✓ POSH Act compliance, wherever applicable

11 Contract Labour — Key Compliance

📄 Licensing

Contract labour / inter-state migrant worker licensing is provided through prescribed electronic applications.

🏭 Principal Employer

Specified welfare facilities at the principal employer's premises are to be provided by the principal employer.

💵 Minimum Wages

Contractors must pay wages in accordance with the applicable Code on Wages provisions.

🏦 Wage Payment

Contract labour wages are to be paid through bank transfer or electronic mode.

🛡 Social Security

EPFO / ESIC coverage applies subject to applicability under the Social Security Code.

📑 Work Order Intimation

Contractors must intimate prescribed work-order details within 15 days of receipt of the work order.

Principal Employer Risk: Where a contractor fails to pay minimum wages to contract labour, the principal employer is liable to make the payment and recover the amount from the contractor as provided under the Rules.

12 Contract Labour Licence — Fee Snapshot

Contract Labour	Licence Fee
Up to 49	Nil
50 – 100	₹5,000
101 – 200	₹10,000
201 – 300	₹15,000
301 – 400	₹20,000
401 – 500	₹25,000
501 – 600	₹30,000
601 – 1,000	₹40,000
Above 1,000	₹50,000

The Rules also prescribe a security deposit of ₹1,000 per contract labour / inter-state migrant worker for the applicable licence.

13 Inter-State Migrant Workers

🚆 Journey Allowance

Eligible inter-state migrant workers who have worked for at least 180 days in the preceding 12 months are entitled to the prescribed lump-sum journey fare once in 12 months.

📊 Data Reporting

Employers are required to submit prescribed statistics and occupational safety and health data relating to inter-state migrant workers through the designated portal.

☎️ Helpline

The Rules provide for a toll-free helpline mechanism for addressing queries and grievances of inter-state migrant workers.

14 HR / EHS Action Checklist

☐ Review establishment registration

☐ Update registration particulars

☐ Audit appointment letters

☐ Identify employees aged 40+

☐ Plan annual health examinations

☐ Review accident reporting SOP

☐ Check Safety Committee applicability

☐ Verify Safety Officer requirement

☐ Review working-hour arrangements

☐ Review overtime controls

☐ Update leave records

☐ Review statutory registers

☐ Review contractor licences

☐ Verify contract labour welfare facilities

☐ Review migrant worker compliance

☐ Prepare annual return calendar

15 HRINFO Quick Reference

Area	Key Requirement
Registration	Valid registration certificate
Appointment Letter	Mandatory prescribed particulars
Health Examination	Annual free medical examination for specified employees/workers aged 40+
Working Hours	Maximum 48 hours/week
Overtime	Twice wages, subject to prescribed conditions and limits
Safety Committee	Specified establishments / thresholds
Annual Return	Form XII — by 1 February
Records	Preserve prescribed records for 5 calendar years
Women Night Work	Written consent + prescribed safety/security conditions
Contract Labour	Licensing, welfare, wage and social security compliance
Migrant Workers	Data, journey allowance and welfare provisions

16 Important Forms — At a Glance

Form I — Registration Form II — Registration Certificate Form IV — Commencement / Cessation Form V — Medical Examination Form VI — Accident / Dangerous Occurrence Form VII — Notice of Work Periods Form VIII — Employee Register Form VIII(A) — Attendance Form IX — Wages / Overtime / Fine Form X — Leave Form XI — Accident Register Form XII — Annual Return Form XIII — Licence Application Form XIV — Contractor Undertaking Form XV — Principal Employer Certificate Form XVI — Licence

17 HRINFO Key Takeaway

OSH compliance is no longer only an EHS responsibility.

HR, Administration, EHS, Plant Operations, Medical, Security, Procurement and Contractor Management teams should jointly review their processes against the Andhra Pradesh OSH & WC Rules, 2026.

The immediate focus should be on: Registration • Appointment Letters • Health Examination • Accident Reporting • Safety Committee • Safety Officer • Working Hours • Overtime • Registers • Annual Return • Contract Labour • Migrant Workers

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Primary Source:
Government of Andhra Pradesh — Labour, Factories, Boilers and Insurance Medical Services Department, G.O.Rt.No.146 dated 06.08.2026 — Final Notification of the Occupational Safety, Health and Working Conditions (Andhra Pradesh) Rules, 2026.

Parent Legislation:
Occupational Safety, Health and Working Conditions Code, 2020 (Central Act No.37 of 2020).

Disclaimer: This HRINFO post is prepared as a quick-reference knowledge resource based on the final Andhra Pradesh Rules, 2026. It is not a substitute for the Gazette notification, the OSH & WC Code, applicable notifications, orders or professional legal advice. Employers should verify the exact applicability, thresholds, forms, procedures, exemptions and subsequent amendments applicable to their establishment.

THE CODE ON SOCIAL SECURITY (ANDHRA PRADESH) RULES, 2026 FINAL FINAL NOTIFICATION • 07 JULY 2026 • G.O.Rt.No. 126

THE CODE ON SOCIAL SECURITY (ANDHRA PRADESH) RULES, 2026

Gratuity • Maternity Benefits • Social Security Boards • ESI Society — Quick HR & Compliance Reference Guide

FINAL NOTIFICATION • 07 JULY 2026 • G.O.Rt.No. 126

The Government of Andhra Pradesh has issued the final The Code on Social Security (Andhra Pradesh) Rules, 2026 [Rule 1(1)] under the Code on Social Security, 2020 (Central Act No. 36 of 2020). These Rules supersede earlier state rules under the Workmen's / Employees' Compensation Act, Maternity Benefit Act, Payment of Gratuity Act, and Unorganised Social Security Act.

The Rules apply throughout Andhra Pradesh and came into force on the date of their publication in the Official Gazette [Rule 1(2)].

📜

07 Jul 2026

Final Notification

🇮🇳

Andhra Pradesh

State-wide Applicability

🛡️

Social Security

Gratuity • Maternity • Boards

📅

01 February

Annual Return Due Date

📄 Official Gazette Notification PDF

Download the official PDF copy of The Code on Social Security (Andhra Pradesh) Rules, 2026.

📥 Download Gazette Notification (PDF)

◆ What HR & Compliance Teams Should Know

🏢 Common Registration

Registration is integrated electronically using Form-I of AP OSH Rules, 2026 as a common form on the State Labour Portal [Rule 3(1)(a)].

💰 Gratuity Rules & Fixed Term

Fixed-term employees rendering at least 1 year of service are eligible for gratuity [Rule 19(1)(a)]. Nominations submitted in Form-I [Rule 18(1)].

🤱 Maternity & Crèche Rules

Crèche required for establishments with 50+ employees [Rule 24(1)] or crèche allowance (min ₹500/month/child) by agreement [Rule 24(2)(viii)].

🏥 AP ESI Society

Establishes ESI Society chaired by Chief Secretary to oversee ESI healthcare and managerial services [Rule 13(1)-(4)].

🪵 Social Security Boards

Governs Unorganised Workers Board [Rule 4] and Building & Other Construction Workers (BOCW) Welfare Board [Rule 9].

📑 Unified Annual Return

Unified Annual Return in Form-XIII to be filed online on or before 1st February every year [Rule 28(5)(a)].

01 Registration & Cancellation Requirements [Rule 3]

Every employer seeking registration must apply electronically on the Designated Portal of the State Labour Department [Rule 3(1)(a)].

✓ Common Form: Uses Form-I under AP OSH Rules, 2026 as common registration form [Rule 3(1)(a)].

✓ Verification: Online PAN or unique identifier verification required [Rule 3(1)(d)].

✓ Deemed Registration: Issued within 7 days; auto-generated if not processed within timeline [Rule 3(1)(e)].

✓ Expiry & Revocation: Expires after 24 months if no compliance is reported on portal [Rule 3(4)].

✓ Updating Particulars: Existing establishments must update portal details within specified period [Rule 3(3)].

✓ Display: Copy of Registration Certificate must be displayed at conspicuous places [Rule 3(10)].

Cancellation Notice: Applications for cancellation of registration due to business closure are decided within 90 days, provided all returns, dues, and self-certifications are filed [Rule 3(8)-(9)].

02 Payment of Gratuity Rules [Rules 17 – 21]

Specific timelines and operational processes govern nomination, claims, dispute handling, and trustee management for gratuity.

Aspect	Rule & Key Requirement
Nomination Submission	Form-I (in duplicate) submitted within 90 days of completing 1 year of service [Rule 18(1)].
Fixed Term Eligibility	Eligible if service rendered is at least 1 year (excess of 6 months rounded to 1 year) [Rule 19(1)(a)].
Claim Application	Form-II submitted within 30 days (employee/nominee) or 1 year (legal heir) [Rule 19(1)].
Employer Notice	Notice in Form-III issued within 15 days of receiving claim application [Rule 19(2)(a)].
Dispute / Appeals	Apply in Form-IV to Competent Authority within 180 days [Rule 19(4)]. Appeals to Appellate Authority within timelines [Rule 19(12)].
Gratuity Trust	Board of Trustees must have equal employer/employee representation & meet quarterly [Rule 20].
Minor's Gratuity	Invested by competent authority in SBI or nationalised bank term deposit [Rule 17].

Wage Exclusion Clarification [Rule 19(2)(a) Explanation]: Performance/productivity bonuses on an annual basis, medical reimbursements, stock options, crèche allowance, telephone/internet reimbursements, and meal voucher values are excluded from gratuity wage calculations.

03 Maternity Benefits & Provisions [Rules 22 – 27]

Outlines claim documentation, nursing allowances, crèche specifications, and gross misconduct exceptions.

📜 Certificate & Notice

Pregnancy/delivery certified in Form-VIII by RMP, ASHA, or ANM [Rule 22(1)(a)]. Notice given in Form-IX [Rule 22(2)(a)].

☕ Nursing Breaks

Two breaks of 15 minutes each + up to 15 minutes extra journey time to/from crèche [Rule 23(1)].

💵 Tubectomy & Medical Bonus

Tubectomy wages paid within 48 hours of Form-X production [Rule 22(2)(f)]. Medical bonus paid with 2nd installment [Rule 22(2)(d)].

Crèche Facilities [Rule 24]

✓ Mandatory for establishments employing 50 or more employees [Rule 24(1)].

✓ Located within 1 km radius (relaxed for notified industrial parks with common facilities) [Rule 24(2)(i)].

✓ Min 10 sq. ft. floor area per child with fenced play area & kitchen facilities [Rule 24(2)(iii)].

✓ Staffed by trained female attendant; 1 female ayah for every 10 children [Rule 24(2)(v)].

✓ Crèche Allowance: By agreement, min ₹500/month/child (max 2 children) if facility isn't directly provided [Rule 24(2)(viii)].

Gross Misconduct [Rule 25(1)]: Maternity benefit may be withheld under section 68 only for gross misconduct like willful destruction of property, assault, theft/fraud, moral turpitude conviction, or safety interference. Appeal lies in Form-X [Rule 25(2)].

04 AP ESI Society & Social Security Boards [Rules 4 – 16]

Establishes specialized state governance bodies for health insurance administration and unorganised worker welfare.

AP ESI Society [Rule 13]

Registered body serving as managerial and healthcare operator. Governing Body chaired by Chief Secretary [Rule 13(4)], Executive Committee chaired by ACS/Secretary Labour or Health [Rule 13(6)]. Governing Body meets twice a year; Executive Committee meets quarterly [Rule 13(8)].

Unorganised Workers Social Security Board [Rule 4]

Reconstituted with nominated non-official members (max 3-year term, max 2 terms) including representation for SC, ST, Minorities, and Women [Rule 4(1)].

BOCW Welfare Board & Schemes [Rules 9 – 11]

Formulates Group Insurance, Educational Schemes for children, and Major Ailment Medical Expense schemes [Rule 9].

Employees' Insurance Court [Rule 16]

State establishes specialized EI Courts for local areas with Labour Court qualified judges to decide ESI disputes [Rule 16(6)].

05 Registers, Records & Annual Return [Rule 28]

Record / Register	Prescribed Form / Reference
Register of Employees	Form-I (Code on Wages AP Rules, 2026) [Rule 28(1)(a)(i)]
Attendance / Muster Roll	Form-IX (Code on Wages AP Rules, 2026) [Rule 28(1)(a)(ii)]
Wages, Overtime, Fines & Deductions	Form-IV (Code on Wages AP Rules, 2026) [Rule 28(1)(a)(iii)]
Register of Women Employees	Form XX [Rule 28(1)(a)(iv)]
Wage Slips	Form-V (Code on Wages AP Rules, 2026) issued 24 hrs prior to wage payment [Rule 28(2)]
Unified Annual Return	Form XIII (Uploaded online by 1st February) [Rule 28(5)(a)]

Record Retention [Rule 28(1)(e)]: All registers and records (electronic or physical) must be preserved in original for a period of five calendar years from the date of the last entry.

06 Offences & Compounding Procedures [Rule 29]

Framework for compounding offences prior to prosecution under Section 138 of the Code.

✓ Compounding Notice: Issued electronically in Form-XIV (Part I/II) by designated Compounding Officer [Rule 29(1)].

✓ Payment Timeline: Noticee must apply in Part III of Form-XIV and deposit amount within 15 days [Rule 29(2)].

✓ Certificate: Composition Certificate issued in Part IV of Form-XIV within 10 days of payment [Rule 29(3)].

✓ Prosecution: Failure to deposit within specified time results in prosecution in Competent Court [Rule 29(4)].

07 HR Social Security Action Checklist

☐ Update establishment registration on AP Labour Portal using OSH Form-I [Rule 3(1)].

☐ Audit gratuity nominations (Form-I) for all employees completing 1 year of service [Rule 18(1)].

☐ Review fixed-term employment contracts for gratuity eligibility compliance [Rule 19(1)(a)].

☐ Setup/Review Gratuity Board of Trustees with equal employee representation [Rule 20].

☐ Verify crèche availability or execute written agreement for Crèche Allowance [Rule 24].

☐ Maintain Register of Women Employees in Form XX [Rule 28(1)(a)(iv)].

☐ Issue electronic wage slips (Form-V) at least 24 hours before wage payout [Rule 28(2)].

☐ Prepare Annual Return calendar for online submission of Form-XIII by Feb 1st [Rule 28(5)].

08 Important Forms — At a Glance

Form I — Establishment Registration (OSH) / Gratuity Nomination Form II — Application for Gratuity Form III — Employer Gratuity Notice Form IV — Direction Application to Competent Authority Form V — Notice / Summons by Authority Form VI — Notice for Payment of Gratuity Form VII — Application for Recovery of Gratuity Form VIII — Maternity Medical Certificate Form IX — Maternity Benefit Notice & Receipt Form X — Tubectomy Certificate / Misconduct Appeal Form XI — Maternity Complaint / Appeal Form XII — Abstract of Maternity Provisions Form XIII — Unified Annual Return Form XIV — Compounding Notice & Certificate Form XX — Register of Women Employees

09 HRINFO Key Takeaway

Social Security rules establish strict statutory timelines and unified digital reporting.

HR, Payroll, and Legal teams must integrate these rules into operational workflows immediately.

Priority focus items: Portal Registration • Gratuity Form-I Nominations • Fixed-Term Gratuity • Crèche / Allowance Agreements • Form XX Register • Unified Annual Return (Form XIII)

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Primary Source:
Government of Andhra Pradesh — Labour, Factories, Boilers and Insurance Medical Services Department, G.O.Rt.No. 126 dated 07.07.2026 — Final Notification of The Code on Social Security (Andhra Pradesh) Rules, 2026.

Parent Legislation:
Code on Social Security, 2020 (Central Act No. 36 of 2020).

Disclaimer: This HRINFO post is prepared as a quick-reference knowledge resource based on the final Andhra Pradesh Rules, 2026. It is not a substitute for the Gazette notification, the Code on Social Security, 2020, applicable notifications, orders or professional legal advice. Employers should verify exact applicability, thresholds, forms, procedures, and exemptions for their establishment.

Andhra Pradesh Code on Wages Rules, 2026 – Final Notification Issued

Introduction

This guide explains the provisions of the Code on Wages (Andhra Pradesh) Rules, 2026 in a practical manner for HR Professionals, Employers, Payroll Teams, Contractors, Compliance Officers and Labour Law Practitioners. The content is organised chapter-wise for easy understanding.

📄 Official Gazette Notification PDF

Download the official PDF copy of The Code on Wages (Andhra Pradesh) Rules, 2026.

📥 Download Gazette Notification (PDF)

Overview

Objective

To regulate minimum wages, payment of wages, working hours, overtime, deductions, registers, forms and other wage related compliances under the Code on Wages.

Effective Date

29 June 2026

Applicable State

Andhra Pradesh

Applicable Law

Code on Wages, 2019

Chapter I

Preliminary

Overview

Introduction

The Code on Wages (Andhra Pradesh) Rules, 2026 have been framed by the Government of Andhra Pradesh under the Code on Wages, 2019 to regulate wage-related matters in establishments within the State. These Rules provide the procedural framework for implementation of the Code by prescribing requirements relating to minimum wages, payment of wages, working hours, overtime, deductions, maintenance of registers, wage slips, claims and statutory forms.

The Rules aim to ensure timely payment of wages, fair remuneration, transparent wage administration and protection of employees against unlawful deductions or delayed wage payments.

Objectives

Ensure payment of at least the notified minimum wages.
Standardise wage administration across establishments.
Provide a transparent system for wage payment.
Protect employees against exploitation.
Promote digital maintenance of statutory records.
Strengthen labour law compliance through Inspector-cum-Facilitators.

Applicability

These Rules apply to establishments to which the Code on Wages, 2019 applies within the State of Andhra Pradesh and cover matters relating to wages, minimum wages, payment of wages and associated procedural requirements.

Quick HR Compliance Checklist

✔ Pay at least the notified minimum wages.
✔ Revise wages whenever VDA is revised.
✔ Pay wages within the prescribed time.
✔ Issue wage slips.
✔ Maintain statutory registers.
✔ Record overtime correctly.
✔ Ensure deductions are lawful.

Chapter I

Preliminary

Short Title and Commencement

These Rules may be called the Code on Wages (Andhra Pradesh) Rules, 2026. They come into force on the date notified by the Government, with the final notification published in the Andhra Pradesh Gazette on 29 June 2026.

Purpose of Chapter I

Chapter I lays down the foundation of the Rules by specifying the short title, commencement, application and interpretation of terms used throughout the Rules.

Important Definitions

Unless the context otherwise requires, expressions used in these Rules have the same meanings assigned to them under the Code on Wages, 2019. HR professionals should always refer to the statutory definitions while interpreting obligations under the Rules.

HRINFO Practical Note

Before implementing any wage policy, employers should verify whether the establishment falls within the scope of the Code on Wages and ensure that wage structures, payroll practices and records align with the statutory requirements.

Key Compliance Points

Understand the scope of the Code and the Rules.
Use statutory definitions consistently in HR policies.
Review wage structures for compliance.
Train payroll and HR teams on the new framework.

Key Takeaway

Chapter I establishes the legal framework for interpreting and implementing the Code on Wages (Andhra Pradesh) Rules, 2026. Correct understanding of the definitions and applicability is essential for compliance with all subsequent chapters.

Chapter II

Minimum Wages

Chapter II

Chapter II – Minimum Wages

Introduction

Chapter II prescribes the procedure relating to minimum wages payable to employees in Andhra Pradesh. Every employer shall ensure that no employee receives wages below the minimum rate of wages notified by the Appropriate Government for the scheduled employment, category of skill and geographical area.

Rule 3 – Minimum Rates of Wages

The Government notifies minimum rates of wages for different scheduled employments. Employers are legally bound to pay not less than the applicable minimum wage to every employee covered by the notification.

Skill Categories

Unskilled
Semi-Skilled
Skilled
Highly Skilled

Employees must be classified correctly according to the work actually performed. Incorrect classification may result in underpayment of wages and statutory liability.

Wage Components

The notified minimum wage generally consists of:

Basic Rate of Wages
Variable Dearness Allowance (VDA), wherever notified

The employer shall ensure that the total wages paid are not less than the notified minimum wages applicable to the employee.

Monthly Wage Calculation

Where the Government notifies daily wages, the monthly wages are ordinarily calculated using the prescribed conversion method under the Rules (commonly based on a 26-day wage month where applicable).

Illustration

Daily Minimum Wage = ₹800

Monthly Wage = ₹800 × 26 = ₹20,800

This is only an illustration. Employers should always adopt the method specified in the applicable Government notification.

Variable Dearness Allowance (VDA)

Where VDA forms part of the notified minimum wages, employers shall revise wages in accordance with the Government notification issued from time to time.

HRINFO Practical Note

Maintain a wage master for each scheduled employment and update payroll immediately after every Government notification revising minimum wages or VDA.

Common Compliance Risks

Paying below notified minimum wages.
Wrong skill classification.
Failure to implement revised VDA.
Using outdated wage notifications.
Ignoring area-wise wage notifications.

Employer Compliance Checklist

✔ Obtain the latest Andhra Pradesh minimum wage notification.
✔ Verify scheduled employment classification.
✔ Verify skill category of each employee.
✔ Update payroll whenever wages are revised.
✔ Maintain documentary proof of wage calculations.
✔ Display wage notifications where required.

Compliance Item	Requirement
Minimum Wage	Not less than Government notified rate
Skill Category	Correct classification
VDA	Implement revised rates promptly
Payroll	Reflect revised wages immediately
Records	Maintain wage registers and supporting records

Key Takeaway

The foundation of wage compliance is ensuring that every employee receives at least the applicable minimum wage notified for the relevant scheduled employment, skill category and geographical area. Regular monitoring of Government notifications and timely payroll updates are essential for compliance.

Chapter III

Working Hours & Weekly Rest

Chapter III

Chapter III – Working Hours & Weekly Rest

Introduction

Chapter III outlines the regulatory framework governing normal working hours, spread-over limits, rest intervals, weekly off days, and overtime computation for employees covered under the Code on Wages (Andhra Pradesh) Rules, 2026. These regulations ensure employee health and safety while defining clear operational constraints for employers.

Rule 5 – Normal Daily Working Hours

The normal daily working hours for an adult employee shall be fixed subject to a maximum of 8 hours per day (exclusive of rest intervals). The total daily spread-over—inclusive of rest intervals—shall not exceed 12 hours on any given day.

Rest Intervals

No employee shall be allowed or required to work continuously for more than 5 hours without an interval for rest of at least half an hour (30 minutes).

Shift & Spread-over Calculation

Example Schedule:

Work Start Time: 09:00 AM
Rest Interval: 01:00 PM to 02:00 PM (1 Hour)
Work End Time: 06:00 PM
Total Working Hours: 8 Hours
Total Spread-over: 9 Hours (Well within the 12-hour statutory limit)

Weekly Rest & Compensatory Off

Every employee is entitled to a paid rest day in every period of seven days (normally Sunday or a designated day off). If an employee is required to work on a scheduled weekly rest day:

They must be granted a substitute rest day (compensatory off) within five days immediately before or after the rest day.
Wages for work done on a weekly rest day must be paid at the statutory overtime rate.

Overtime Rates and Hours

Where an employee works in excess of 8 hours on any day or more than 48 hours in any week, the additional hours shall be treated as overtime.

Overtime Rate: Double the ordinary rate of wages (Basic + VDA).
Maximum OT Hours: Aggregate overtime hours must not exceed prescribed threshold limits (e.g., maximum 125 hours per quarter) as specified under state guidelines.

HRINFO Practical Note

Ensure shift rosters are published well in advance. Attendance systems must capture exact punch times (entry, exit, and break duration) to avoid discrepancies when calculating overtime and verifying compliance during statutory inspections.

Common Compliance Risks

Exceeding the 12-hour daily spread-over limit.
Forcing continuous work beyond 5 hours without a formal rest break.
Calculating overtime at single rate instead of double the ordinary wage rate.
Failing to grant a compensatory off within the stipulated timeframe.
Inadequate or inaccurate attendance records.

Employer Compliance Checklist

✔ Fix standard working hours and display shift schedules on notice boards.
✔ Ensure rest intervals of at least 30 minutes for every 5 continuous hours worked.
✔ Track daily spread-over to ensure it stays within 12 hours.
✔ Pay 2x ordinary rate of wages for all overtime hours worked.
✔ Maintain accurate Overtime Registers (Form IV) and attendance logs.
✔ Grant compensatory off for work performed on weekly rest days.

Parameter	Statutory Limit / Requirement
Max Daily Working Hours	8 Hours per day
Max Daily Spread-over	12 Hours (including breaks)
Continuous Work Limit	Maximum 5 hours before mandatory rest break
Rest Interval Duration	Minimum 30 minutes
Overtime Rate	200% (Double) of ordinary rate of wages
Weekly Off Day	1 day of rest per 7 days worked

Key Takeaway

Adherence to Chapter III rules ensures worker well-being while protecting establishments from penal liabilities related to wage disputes and illegal overtime practices. Digitized attendance logging and automated shift management are key to seamless compliance.

Chapter IV

Payment of Wages

Chapter IV

Chapter IV – Payment of Wages

Introduction

Chapter IV governs the mode, time, and procedure for the disbursement of wages to employees in Andhra Pradesh. The primary aim of this chapter is to eliminate wage delays, ensure transparent payment practices through digital modes, and guarantee the timely settlement of dues upon termination or resignation.

Fixation of Wage Period

Every employer shall fix a wage period for employees, which may be on a daily, weekly, fortnightly, or monthly basis. No wage period fixed by an employer shall exceed one month.

Time Limits for Wage Payment

Wages must be disbursed within the strict statutory timelines based on the established wage period:

Daily Basis: At the end of the shift.
Weekly Basis: On the last working day of the week.
Fortnightly Basis: Before the end of the second day after the end of the fortnight.
Monthly Basis: Before the expiry of the 7th day of the succeeding month.

Mode of Payment of Wages

All wages shall be paid in current coin or currency notes, or by cheque, or by crediting the wages directly into the bank account of the employee (electronic bank transfer). Digital payment modes (NEFT/RTGS/UPI) are strongly prioritized for transparency.

Timelines for Final Settlement (Separation / Removal)

Where an employee has been removed, dismissed, retrenched, resigned, or has ceased employment due to closure of the establishment, the wages payable to them must be fully paid within two working days of such removal, dismissal, resignation, or closure.

Final Settlement Timeline

Scenario: An employee submits their resignation and works their final day on Tuesday.

Compliance Obligation: All pending wages and accrued statutory dues must be settled and credited to their bank account by Thursday (within 2 working days).

HRINFO Practical Note

Align your payroll processing cycles so that monthly payouts are completed on or before the 7th of every month. For exiting employees, establish a fast-track full & final (F&F) settlement process to ensure compliance with the mandatory 2-working-day payout window.

Common Compliance Risks

Delaying monthly wage disbursement beyond the 7th day of the month.
Holding final wage settlements beyond the mandatory 2-working-day limit post-resignation or termination.
Making cash payments without proper wage receipts or signatures.
Unilateral delay of wages citing client payment delays or operational issues.

Employer Compliance Checklist

✔ Set a defined wage period not exceeding 30 days.
✔ Complete monthly salary transfers on or before the 7th day of the following month.
✔ Ensure payment is made electronically or via official bank channels.
✔ Process final settlement (F&F) within 2 working days of separation.
✔ Maintain bank transaction logs or signed wage registers as proof of payment.
✔ Issue digital or physical wage slips to all employees on or before the pay date.

Wage Period / Event	Statutory Payment Deadline
Monthly Wage Period	On or before the 7th day of the next month
Weekly Wage Period	Last working day of the week
Fortnightly Wage Period	Within 2 days following the fortnight end
Daily Wage Period	At the end of the shift
Resignation / Termination / Closure	Within 2 working days from separation date
Permissible Payment Modes	Bank Transfer, Cheque, or Currency Notes

Key Takeaway

Chapter IV emphasizes strict adherence to wage payment schedules and electronic transparency. Timely monthly wage payouts and rapid 2-day final settlements post-separation are essential compliance pillars under the Code on Wages (Andhra Pradesh) Rules, 2026.

Chapter V

Deductions

Chapter V

Chapter V – Deductions from Wages

Introduction

Chapter V sets out strict legislative boundaries on permissible deductions that can be made from an employee’s gross wages under the Code on Wages (Andhra Pradesh) Rules, 2026. To safeguard workers against arbitrary or excessive financial penalties, the rules explicitly list authorized deductions and cap the total allowable deductions per wage period.

Authorized Deductions

No employer can make deductions from an employee’s wages except those specifically authorized under the Code. Authorized categories include:

Fines: Imposed for specific acts or omissions approved by the competent authority.
Absence from Duty: Pro-rata deduction for period(s) of absence without authorization.
Damage or Loss: For loss or damage directly attributable to the neglect or default of the employee.
Housing & Amenities: For house accommodation or amenities/services provided by the employer.
Advances & Loans: Recovery of wage advances, interest, or loans granted to the employee.
Statutory Deductions: Provident Fund (PF), Employees' State Insurance (ESI), Professional Tax (PT), Income Tax (TDS), and court orders.

Rule 14 – Imposition of Fines

Fines cannot be levied arbitrarily. Employers must observe the following conditions:

A list of acts/omissions for which fines may be imposed must be displayed on the notice board.
The total fine in a single wage period cannot exceed 3% of the employee’s wages.
No fine shall be imposed on any employee who is under the age of 15 years.
Fines must be recovered in a single installment and within 60 days of the offense.
All fines realized must be recorded in a dedicated Register of Fines and utilized for employee welfare.

Deductions for Damage or Loss

Before making any deduction for damage to or loss of property belonging to the employer:

The employee must be given a reasonable opportunity to show cause why the deduction should not be made.
An opportunity for a formal hearing must be provided.
The deduction shall not exceed the actual amount of damage or loss caused to the establishment.

Overall Ceiling on Deductions (50% Cap)

The total amount of deductions (statutory + non-statutory) which may be made in any wage period from the wages of an employee shall not exceed 50% of such wages. If total deductions exceed 50%, the excess amount must be carried forward and recovered in subsequent wage periods.

50% Deduction Limit Calculation

Gross Monthly Wages: ₹30,000

Maximum Total Deductions Allowed (50% Limit): ₹15,000

If statutory deductions (PF, ESI, PT) sum to ₹4,000 and loan recovery amounts to ₹12,000 (Total ₹16,000), the employer can only recover ₹11,000 towards the loan during that month to keep the total within the ₹15,000 ceiling. The remaining ₹1,000 loan balance must be carried forward.

HRINFO Practical Note

Configure your automated payroll system with a hard lock logic that caps aggregate payroll deductions at 50% of net gross earnings. Ensure all disciplinary fines undergo a formal show-cause process prior to deduction to stand statutory scrutiny during inspections.

Common Compliance Risks

Recovering loans or advances that push net payout below the 50% statutory threshold.
Deducting money for damage or stock loss without issuing a formal written notice/hearing.
Imposing fines exceeding 3% of the monthly gross wage.
Failing to maintain statutory Registers of Fines, Deductions, and Advances.

Employer Compliance Checklist

✔ Display an approved notice listing acts and omissions subject to fines.
✔ Issue formal Show Cause Notice before making deductions for loss or damage.
✔ Enforce the 50% ceiling on aggregate deductions in payroll processing.
✔ Record all fines, damage recoveries, and advances in Form II / Statutory Registers.
✔ Ensure non-statutory recoveries (e.g., transport, canteen, housing) are explicitly authorized in writing by the employee.

Type of Deduction	Statutory Ceiling / Requirement
Overall Maximum Deduction Limit	Cap of 50% of total wages in any wage period
Fines (Max Cap)	Max 3% of total wage; 0% for employees under 15 years
Fine Realization Timeline	Must be recovered within 60 days in a single installment
Deduction for Loss/Damage	Requires prior Show-Cause notice & formal hearing
Absence from Duty	Proportionate to the actual duration of absence
Statutory Recoveries (PF, ESI, PT, TDS)	As prescribed under respective primary Acts

Key Takeaway

Chapter V ensures that employee take-home pay remains protected. Employers must rigidly enforce the 50% overall deduction limit and adhere strictly to natural justice—providing notice and hearing—before penalizing employees through wage deductions for damage or default.

Chapter VI

Claims & Authorities

Chapter VI

Chapter VI – Claims & Authorities

Introduction

Chapter VI establishes the statutory mechanism for dispute resolution, filing of claims, appointment of adjudicating authorities, and the appellate procedure under the Code on Wages (Andhra Pradesh) Rules, 2026. It provides employees, trade unions, and Inspector-cum-Facilitators a streamlined legal recourse for recovering unpaid or delayed wages, unauthorized deductions, and minimum wage shortfalls.

Appointment of Designated Authority

The State Government appoints officers (not below the rank of Assistant Commissioner of Labour or specified gazetted officers) as the Designated Authority to hear and decide claims arising out of non-payment of minimum wages, illegal deductions, or delayed payment of wages within their respective territorial jurisdictions.

Who Can File a Claim Application?

An application for a claim under Chapter VI can be filed before the Designated Authority by:

The affected employee or worker.
Any registered Trade Union of which the employee is a member.
An Inspector-cum-Facilitator.
An official authorized by the State Government.

Prescribed Forms and Time Limits

Claims must be submitted in the prescribed format along with relevant supporting documentation (such as wage slips, attendance records, or bank statements):

Limitation Period: Claims must be filed within 3 years from the date on which the claim arose (extended from 12/24 months under legacy laws).
Condonation of Delay: The Designated Authority may admit an application after the 3-year period if satisfied that the applicant had sufficient cause for the delay.

Compensation & Penalty Orders

Where a claim is admitted and decided in favor of the employee:

Wage Recovery: The employer will be ordered to pay the unpaid or delayed wage amount along with compensation, which may extend up to 10 times the amount of the claim.
Malicious/Vexatious Claims: If a claim is found to be malicious or frivolous, the Authority may penalize the applicant with a fine up to the prescribed limit.

Appeals & Enforcement

Any party aggrieved by an order passed by the Designated Authority may prefer an appeal before the Appellate Authority (typically a Regional Joint Commissioner of Labour) within 90 days from the date of the order.

Pre-deposit Requirement: No appeal by an employer shall be entertained unless the employer deposits the awarded amount with the Appellate Authority prior to filing.
Recovery Mechanism: Unpaid claim amounts awarded by the Authority are recoverable as arrears of land revenue or through distress proceedings.

HRINFO Practical Note

Maintain flawless wage and attendance records for at least 3 years to defend against statutory claims. Ensure all full and final settlements carry signed or digitally acknowledged receipts to prevent post-employment wage dispute applications before the Authority.

Common Compliance Risks

Ignoring notices or hearings issued by the Designated Authority, leading to ex-parte orders.
Failing to maintain supporting payroll registers for the extended 3-year limitation window.
Challenging awards in appeal without pre-depositing the awarded wage amount.
Underestimating heavy financial compensation risk (up to 10x penalty) for willful non-payment of minimum wages.

Employer Compliance Checklist

✔ Maintain full payroll, attendance, and wage records for a minimum of 3 years.
✔ Ensure prompt representation and reply to any notice received from the Claims Authority.
✔ Retain electronic receipts or signed acknowledgments for all wage settlements.
✔ Verify that all wage calculations strictly adhere to the state minimum wage notifications to avoid statutory claims.
✔ Audit sub-contractor wage compliance regularly to mitigate principal employer claim liabilities.

Parameter / Aspect	Statutory Provision / Timeline
Adjudicating Officer	Designated Authority (Assistant Commissioner of Labour or equivalent)
Limitation Period to File Claim	Within 3 years from the date the cause of action arises
Maximum Compensation Awarded	Up to 10 times the claim amount (in addition to unpaid wages)
Appellate Forum	Appellate Authority (Regional Joint Commissioner of Labour)
Time Limit for Filing Appeal	Within 90 days from the date of the order
Pre-Condition for Employer Appeal	Mandatory deposit of 100% of the awarded claim amount

Key Takeaway

Chapter VI significantly strengthens employee protection by expanding the claim limitation period to 3 years and prescribing severe compensation multipliers for default. Meticulous documentation, early dispute resolution, and prompt legal representation before the Designated Authority are critical to managing organizational legal risks.

Chapter VII

Registers & Records

Chapter VII

Chapter VII – Registers, Records & Wage Slips

Introduction

Chapter VII prescribes the statutory maintenance of registers, records, wage slips, and notices by employers under the Code on Wages (Andhra Pradesh) Rules, 2026. The rules focus on digital recordkeeping, standardization of statutory formats, and ensuring complete transparency in wage administration across all establishments.

Rule 19 – Maintenance of Statutory Registers

Every employer shall maintain accurate registers in the prescribed statutory forms covering employee details, wages paid, deductions made, overtime worked, and attendance. Registers may be maintained electronically or physically at the establishment.

Unified Register of Wages, Overtime, Deductions, and Fine (Form I): Combines details of gross wages, allowances, deductions, OT hours, net pay, and payment dates into a single streamlined register.
Register of Attendance & Hours of Work: Must accurately reflect daily entry, exit, rest intervals, and overtime hours for every employee.

Rule 20 – Issuance of Wage Slips (Form V)

Every employer shall issue a wage slip to every employee—either physically or digitally (via email, ESS portal, or messaging services)—at least one day prior to the disbursement of wages.

The wage slip must contain employee details, designation, wage rate, total days/hours worked, itemized earnings, itemized deductions, and net amount payable.
Digital wage slips with electronic authentication or system-generated receipts satisfy legal compliance requirements.

Retention Period & Digital Storage

All registers, records, and wage slips must be preserved for a minimum period of 3 years from the date of the last entry made in them.

Electronic registers must be maintained in a searchable, readable format and backed up regularly.
In case of digital recordkeeping, hard copies are not required unless specifically requested by an Inspector-cum-Facilitator during inspection.

Display of Statutory Notices

Every employer shall display a notice at the main entrance of the establishment or on the company intranet/notice board in English and Telugu containing:

Notified rates of minimum wages applicable for each category of workers.
Abstracts of the Code on Wages and AP Rules.
Name, designation, and official address of the Inspector-cum-Facilitator having jurisdiction.
Designated pay day and shift schedules.

HRINFO Practical Note

Migrate from multiple legacy registers to the consolidated Form I digital layout. Ensure your payroll software generates digital wage slips automatically before payday and maintains an encrypted audit trail/backup for the mandatory 3-year statutory retention window.

Common Compliance Risks

Failing to issue wage slips at least one day before actual wage disbursement.
Discrepancies between physical/digital attendance logs and wage registers.
Incomplete wage slips omitting detailed breakups of earnings or statutory deductions.
Failure to display updated minimum wage notices and Inspector contact details in Telugu.
Purging payroll and attendance data before the end of the mandatory 3-year retention period.

Employer Compliance Checklist

✔ Maintain the consolidated Register of Wages (Form I) digitally or physically.
✔ Issue Form V Wage Slips to all employees at least 1 day prior to payout.
✔ Retain all attendance, payroll, and wage records for a minimum of 3 years.
✔ Display statutory notices (minimum wage rates & abstract of Rules) in English and Telugu.
✔ Ensure electronic records are easily accessible for inspection by Inspector-cum-Facilitators.

Statutory Register / Document	Form / Mode	Mandatory Timeline / Retention
Register of Wages, OT & Deductions	Form I (Consolidated)	Maintain continuously; retain for 3 years
Wage Slip	Form V (Physical or Digital)	Issue at least 1 day prior to wage payment
Attendance Register	Physical / Biometric Log	Daily updates; retain for 3 years
Statutory Notice Board Display	Physical / Intranet Display	Update immediately upon wage rate revision
Record Preservation Period	Digital / Hard Copy	Minimum 3 years from last entry date

Key Takeaway

Chapter VII simplifies recordkeeping by consolidating multiple legacy registers into unified digital formats. Timely distribution of wage slips and digitized retention of payroll data for 3 years form the operational core of statutory audit readiness under the Code on Wages (Andhra Pradesh) Rules, 2026.

Chapter VIII

Miscellaneous

Chapter VIII

Chapter VIII – Miscellaneous Provisions

Introduction

Chapter VIII serves as the closing legal framework of the Code on Wages (Andhra Pradesh) Rules, 2026. It governs supplementary administrative mechanisms, including the composition and functioning of the State Advisory Board, duties of Inspector-cum-Facilitators, compounding of offenses, protection against prosecution, and repeal/savings provisions.

State Advisory Board

The State Government shall constitute the State Advisory Board to advise on setting and revising minimum wages, expanding employment avenues for women, and other wage-related administrative matters.

Composition: Equal representation from employers, employees, independent persons, and statutory representation for women (at least one-third of total members).
Term & Meetings: Board members serve for a specified term, and meetings are convened periodically to review cost-of-living indices and wage trends across Andhra Pradesh.

Role of Inspector-cum-Facilitators

The Rules redefine the traditional "Labour Inspector" as an Inspector-cum-Facilitator, shifting the focus from purely punitive actions to a web-based, transparent compliance advisory model.

Advice & Guidance: Provide guidance to employers and workers regarding statutory compliance requirements.
Inspection Scheme: Conduct randomized, web-based inspections to ensure objective evaluation.
Opportunity to Rectify: Before initiating prosecution for first-time non-compliance (other than severe offenses), the Inspector-cum-Facilitator must give the employer a written opportunity to rectify the defect within a specified timeframe.

Compounding of Offenses

To promote ease of doing business and reduce protracted litigation, specified first-time offenses under the Code may be compounded (settled) upon payment of a prescribed sum:

Compounding is available for non-heinous offenses prior to or after the institution of prosecution.
Once an offense is successfully compounded, no further criminal prosecution shall lie against the employer for that specific default.

Repeal and Savings

With the commencement of the Code on Wages (Andhra Pradesh) Rules, 2026, corresponding state rules under legacy enactments (Minimum Wages Act, Payment of Wages Act, Equal Remuneration Act, and Payment of Bonus Act) stand repealed.

Savings Clause: Any action taken, notification issued, or order passed under the repealed rules shall remain valid and continue in force unless superseded by actions under the new Rules.

HRINFO Practical Note

Leverage the "opportunity to rectify" window offered by Inspector-cum-Facilitators during initial audits. Establish an internal compliance review process so that any procedural lapses identified during an inspection are cured promptly within the stipulated notice period.

Common Compliance Risks

Ignoring written rectification notices issued by Inspector-cum-Facilitators, leading to direct criminal prosecution.
Failing to utilize compounding options for minor first-time statutory breaches.
Obstruction or non-cooperation with Inspector-cum-Facilitators during web-based or physical site visits.
Assuming legacy notifications are automatically void without verifying the savings clause transitions.

Employer Compliance Checklist

✔ Cooperate fully with Inspector-cum-Facilitators during digital/physical inspections.
✔ Act immediately upon receiving statutory notice/rectification letters from compliance officers.
✔ Evaluate compounding options for minor or historical first-time compliance lapses.
✔ Monitor State Advisory Board notifications for upcoming minimum wage and VDA revisions.
✔ Ensure company policies reflect the shift from legacy labor rules to the unified AP Rules format.

Provision / Mechanism	Key Objective / Requirement
State Advisory Board	Advises state government on wage fixation & female employment growth (Min 1/3rd women members)
Inspector-cum-Facilitator	Provides guidance + conducts web-based randomized inspections
Opportunity to Rectify	Mandatory notice period given to cure first-time minor non-compliances
Compounding of Offenses	Monetary settlement mechanism to prevent criminal prosecution for eligible defaults
Repeal and Savings	Repeals legacy state rules while preserving existing notifications until updated

Key Takeaway

Chapter VIII bridges advisory support and statutory enforcement. The introduction of web-based inspections, compounding mechanisms, and mandatory opportunity-to-rectify provisions offers employers a transparent path to maintaining compliance under the Code on Wages (Andhra Pradesh) Rules, 2026.

Forms Prescribed

Statutory Forms Matrix

Forms Schedule

Statutory Forms Matrix & Compliance Guide

Overview of Prescribed Forms

Under the Code on Wages (Andhra Pradesh) Rules, 2026, statutory forms have been consolidated to simplify compliance and support digital recordkeeping. Legacy registers have been merged into unified formats, significantly reducing administrative redundancy while maintaining full audit transparency.

Form No.	Name of the Form	Statutory Purpose & Usage	Frequency / Mode
Form I	Register of Wages, Overtime, Fine & Deductions	Consolidated master register tracking basic pay, allowances, attendance, OT hours, statutory deductions, fine imposition, and net wages paid.	Monthly / Digital or Physical
Form II	Single Integrated Annual Return	Annual compliance return summarizing total employee count, gross wages disbursed, total deductions, fine realization, and OT payment summary.	Annual (On or before 1st February)
Form III	Application for Claim	Formal claim application filed before the Designated Authority for recovery of unpaid/delayed wages, unauthorized deductions, or minimum wage shortfalls.	Event-based (Within 3 years of claim)
Form IV	Register of Overtime & Rest Days	Detailed log recording individual employee overtime hours worked, normal rate vs OT rate calculations, total OT earnings, and compensatory off granted.	Continuous / Real-time
Form V	Wage Slip	Itemized wage statement issued to every employee detailing gross pay, individual allowance components, statutory/non-statutory deductions, and net credit.	Monthly (At least 1 day prior to payday)
Form VI	Notice of Rates of Minimum Wages & Abstract	Statutory notice displayed at establishment premises detailing current notified minimum wages, VDA rates, wage payment dates, and Inspector details.	Permanent Display (Updated upon revision)
Form VII	Application for Compounding of Offense	Formal petition submitted by the employer to compound (settle) eligible first-time compliance defaults and avoid criminal prosecution.	Event-based (Post inspection / notice)

HRINFO Practical Note

Transitioning to Form I eliminates the need to maintain separate legacy registers for fines, deductions, advances, and overtime. Ensure your payroll software vendor updates your system's output template to export Form I and Form V directly in compliance with the AP Rules.

Key Submission & Maintenance Rules

Digital Validity: Forms maintained electronically with valid system audit trails and digital signatures satisfy all statutory requirements during inspections.
Annual Return Deadline: Form II (Integrated Annual Return) must be filed electronically on the state portal on or before the 1st of February every year for the preceding calendar year.
Pre-Payday Wage Slips: Form V Wage Slips must be delivered (via email, ESS portal, or paper) at least 1 day prior to salary credit.

Key Takeaway

The 2026 Rules streamline statutory paperwork into 7 core forms. Adopting automated digital register generation for Forms I, IV, and V ensures full audit readiness and seamless annual filing via Form II.

Frequently Asked Questions

Practical HR & Compliance FAQs

FAQ Knowledge Base

Practical Answers for HR & Compliance Professionals

Overview

This section addresses common real-world compliance queries faced by HR managers, payroll leaders, employers, and legal practitioners under the Code on Wages (Andhra Pradesh) Rules, 2026. Click on any question to view the practical resolution and statutory guidance.

1. When do the Code on Wages (Andhra Pradesh) Rules, 2026 officially take effect?

The Rules come into force on the date notified by the Government, with the final publication in the Andhra Pradesh Gazette occurring on 29 June 2026. Establishments operating in Andhra Pradesh must align their payroll systems, wage structures, and statutory registers with this effective date.

2. What is the maximum limit for salary deductions in a given wage period?

Under Chapter V of the Rules, aggregate deductions (including statutory deductions like PF, ESI, PT, TDS, as well as non-statutory recoveries like loans, advances, or canteen charges) cannot exceed 50% of the employee's total wages in any wage period. Any excess amount must be carried forward to subsequent pay cycles.

3. Within how many days must an employee receive their final settlement (Full & Final) post-resignation or termination?

Where an employee resigns, is dismissed, retrenched, or separated due to establishment closure, all unpaid wages and statutory dues must be settled and credited within 2 working days from the date of removal or separation.

4. Can wage slips be issued digitally, and what is the exact deadline for issuance?

Yes, wage slips (Form V) can be issued digitally via email, Employee Self-Service (ESS) portals, or electronic messaging systems. Statutory compliance mandates that wage slips must be issued to employees at least 1 day prior to the actual wage disbursement date.

5. What is the maximum daily spread-over limit permitted under the AP Rules?

The normal daily working hours are fixed at 8 hours per day (exclusive of rest intervals). The total daily spread-over—inclusive of rest breaks—shall not exceed 12 hours on any given day.

6. How is overtime calculated, and what is the applicable rate?

Any work performed beyond 8 hours a day or 48 hours a week qualifies as overtime. Overtime wages must be calculated at double (200%) the ordinary rate of wages (Basic + Variable Dearness Allowance).

7. What is the time limit (limitation period) for an employee to file a statutory wage claim?

Employees, trade unions, or Inspector-cum-Facilitators can file claim applications before the Designated Authority within 3 years from the date on which the claim arose (extended from the earlier 12/24 month windows under repealed laws).

8. Are physical registers still compulsory, or are electronic records legally valid?

Electronic registers maintained with automated system audit trails are fully recognized and legally valid. Maintaining the unified Form I (Register of Wages, Overtime, Fines, and Deductions) digitally eliminates the need for maintaining separate legacy paper registers, provided records are retained for at least 3 years.

9. What fine can be imposed on an employee for misconduct or failure to perform duties?

Fines can only be levied for acts or omissions previously approved and displayed on the notice board. The total fine in a single wage period cannot exceed 3% of the employee’s monthly wage. Additionally, no fine can be imposed on employees under 15 years of age.

10. When must the Integrated Annual Return (Form II) be submitted?

The Integrated Annual Return (Form II) summarizing workforce details, wage disbursements, OT payouts, and fine realizations must be submitted electronically on or before the 1st day of February every year for the preceding calendar year.

HRINFO Practical Note

Keep this FAQ section updated alongside your internal HR Policy Knowledge Base. Integrating these standard statutory interpretations into your employee handbooks and manager training modules will minimize compliance friction during routine audits.

Key Takeaway

Understanding practical operational thresholds—such as the 50% deduction cap, 2-day separation payouts, 1-day advance wage slip distribution, and 3-year record preservation—enables proactive labor law compliance under the Code on Wages (Andhra Pradesh) Rules, 2026.