Key Changes - Code on Wages

Coverage Threshold

Before

Payment of Wages Act applied only to employees earning up to ₹24,000/month

After

No wage ceiling - applies to ALL employees regardless of wages

Why it matters: Universal coverage regardless of salary level

Wage Payment Timeline

Before

Wages to be paid by 10th of succeeding month

After

Wages to be paid by 7th of succeeding month

Why it matters: 3 days faster payment mandatory

Termination Wage Payment

Before

No specific timeline for final settlement

After

Within 2 working days of termination/resignation

Why it matters: New strict timeline for full and final settlement

Deductions Cap

Before

Various limits under different laws

After

Maximum 50% of wages can be deducted

Why it matters: Explicit cap ensures worker receives at least half their wages

Gender Equality

Before

Equal Remuneration Act covered male and female

After

Covers 'all genders' including transgender persons

Why it matters: Progressive inclusion of third gender in workplace rights

Payment Mode

Before

Cash or cheque

After

Cash, cheque, or digital/electronic transfer

Why it matters: Digital payments officially recognized

In-Kind Wages

Before

Not clearly defined

After

Maximum 15% of wages can be paid in kind

Why it matters: Clear limit on non-cash compensation