Code on Wages: 5 New Salary Rights You Must Know

India's Code on Wages 2019 sets clear rules: salary by the 7th, overtime pay limits, and dues cleared fast after resignation. Know your rights before your next paycheck.

Here's what happened: Code on Wages 2019 consolidates four old labour laws and sets a hard deadline — salary must be paid by the 7th of every month for most employees.. If you resign or are terminated, your employer must settle all pending dues within two working days — not weeks, not 'next cycle'.. The law also mandates a universal minimum wage floor across all sectors and states, ending the patchwork of inconsistent state-level rules..

What you should do: Check your appointment letter to confirm your salary date — if it routinely slips past the 7th, you can now formally flag it as a violation.. If you have recently resigned or plan to, document your last working day in writing so the two-working-day dues clock starts clearly.. Compare your current salary structure against the minimum wage floor for your state and sector using the Labour Ministry's Shram Suvidha portal — any shortfall is legally actionable..

Pro tip: Under the Code on Wages, deductions from your salary are capped at 50% of your total wages in any pay period — your employer cannot legally recover loans or advances beyond this limit in a single month.