Code on Wages (Rajasthan) Rules, 2026: Complete Compliance Guide

Notification: S.O. 40, Labour Department, Government of Rajasthan Published: 12-08-2026, Rajasthan Gazette (Extraordinary) Effective from: Date of publication in the Official Gazette Repeals: Rajasthan Minimum Wages Rules 1959, Rajasthan Minimum Wages (Undisbursed Amount) Rules 1961, Rajasthan Payment of Wages Rules 1961, Rajasthan Payment of Wages (Procedure) Rules 1961, Rajasthan Payment of Wages (Unclaimed Amount) Rules 1972, Rajasthan Payment of Wages (Manner of Recovery of Excess Deductions) Rules 1966, Rajasthan Ease of Compliance to Maintain Registers under various Labour Laws Rules 2017

Rajasthan has notified its state rules under the Code on Wages, 2019. The draft was first published on 13-01-2026; after the mandatory 45-day objection window, the final rules were notified on 12-08-2026. For HR and payroll teams operating in Rajasthan, these rules replace seven older wage-related rule sets with a single unified framework.

Source: Code on Wages (Rajasthan) Rules, 2026 — Official Gazette Notification

Tracking similar rule notifications in other states? See our State Rules Tracker for a live, code-wise status across India.

1. How Minimum Wages Are Calculated

The rules use the standard “three consumption unit” family model:

• Base unit: A standard working-class family (spouse + two children) is treated as three adult consumption units
• Calorie norm: 2,700 calories per day per consumption unit
• Clothing: 66 metres of cloth per year per family
• Housing: Rent expenditure set at 10% of food and clothing costs
• Fuel & miscellaneous: 20% of the minimum wage
• Education, medical, recreation, contingencies: 25% of the minimum wage

Wages are fixed on a daily basis first, then converted: divide by 8 for the hourly rate, multiply by 26 for the monthly rate. Rounding — 0.5 and above rounds up, below 0.5 is dropped. For a five-day working week, the hourly rate derives the daily rate.

Skill classification: A four-category system (unskilled, semi-skilled, skilled, highly skilled) applies, advised by a Technical Committee chaired by the Labour Commissioner, with representation from the Skills Planning & Entrepreneurship Department, Employment Department, two technical wage experts, and the Additional Labour Commissioner (IR) as Member Secretary. The classification schedule appended to the rules lists roles under each category — for example, cleaners and watchmen (unskilled), assistant carpenters and lift operators (semi-skilled), electricians and heavy vehicle drivers (skilled), and managers, nurses, and accountants (highly skilled).

2. Variable Dearness Allowance (VDA)

VDA must be revised twice a year — 1st April and 1st October — based on the price index published by the Labour Bureau, Ministry of Labour and Employment, Government of India.

3. Working Hours & Rest

• Weekly cap: 48 hours
• Six-day week: Spread-over (including rest interval) capped at 10.5 hours/day; the 7th day is a paid holiday
• Flexible week (fewer than 6 days): Spread-over capped at 12 hours/day; requires consent of the negotiating union/council, or majority consent of employees where none exists
• Rest interval: Mandatory 30-minute break after 5 continuous hours of work
• Weekly rest day: At least one paid rest day; if worked, overtime rate applies plus a substituted rest day within the same week (no employee can work more than 10 consecutive days without a rest day)
• Night shifts: A rest day for shifts extending past midnight is defined as 24 consecutive hours from shift-end, with post-midnight hours counted toward the previous day

4. Wage Period & Deductions

• Longest permissible wage period: One month
• Deduction cap: Total deductions (advances, fines, damages) cannot exceed 50% of wages in a wage period; excess carries forward to the next period, still capped at 50% per month
• Damage/loss recovery: Employer must explain the loss to the employee in writing, state how it’s attributable to the employee’s neglect/default, and give the employee a chance to respond before deducting
• Fines: Require prior approval from the notified Authority, who must hear both employer and employee and decide within 30 days (deemed approved if no decision is made in time)
• Advance recovery: Installments for advances also fall within the same 50%-per-period ceiling

5. Contractor & Principal Employer Liability

• Timely wage payment (Rule 46): The principal employer must pay the contractor before the wage payment date, to ensure the contractor can pay workers on time
• Minimum bonus default (Rule 47): If a contractor fails to pay minimum bonus, the principal employer must pay it directly once the default is confirmed, on written information from the employees or a registered trade union

6. Mandatory Registers & Forms

Registers must be preserved for 5 years from the date of the last entry, and may be maintained electronically or physically.

7. Dispute Resolution & Offences

• Claims (unpaid minimum wages, overtime, rest-day wages, bonus, unlawful deductions) go to the notified Authority via a single application (Form-II)
• Appeals go to the Appellate Authority (Form-III) — employer appeals require the disputed amount to be deposited upfront
• Offences can be compounded at 50% of the maximum fine, via application to the notified Gazetted Officer

What Employers Should Do Now

• Audit current wage structures against the 3-unit family formula and confirm VDA revision dates are aligned to 1st April/1st October
• Check deduction processes — especially damage/loss recovery — for the written-explanation-and-hearing requirement
• Confirm Form-I, IV, V, VI, VII are in place (electronic is acceptable)
• Principal employers using contract labour should build a check on contractor bonus payments into their compliance calendar
• Update workplace notices to trilingual format if not already compliant

This summary is based on the Code on Wages (Rajasthan) Rules, 2026 (S.O. 40, dated 12-08-2026). Employers should refer to the original gazette notification for the authoritative version. For the Rajasthan Industrial Relations Rules, 2026 — notified the same day — see our companion article. Track similar state rule notifications on our State Rules Tracker.