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