Ministry of Labour and Employment Amends Code on Wage, 2019: Supervisory Wage Limit Raised to ₹18,000
The Ministry of Labour and Employment’s amendment to the Code on Wages, 2019, raising the supervisory wage limit to ₹18,000 per month, is a landmark development in India’s labour law landscape. By redefining the “worker” category, the government has extended statutory protections to a larger segment of supervisory staff, ensuring greater fairness and consistency across labour legislation.
The Ministry of Labour and Employment has officially amended the Code on Wages, 2019, revising the wage threshold for supervisors to ₹18,000 per month. This change, notified through the Gazette Notification S.O. 454(E) dated January 30, 2026, marks a significant shift in the legal classification of employees and is expected to have wide-ranging implications across industries.
The amendment redefines who qualifies as a “worker” under the Code, thereby extending statutory labour protections to a larger segment of supervisory staff. It also brings the Code on Wages into alignment with the Industrial Relations Code, 2020, which had already established the same wage limit for supervisors.
Under the revised framework, supervisors earning up to ₹18,000 per month are now legally classified as “workers.” This is a critical development because the definition of “worker” determines eligibility for a wide range of labour law protections, including minimum wage entitlements, payment of wages, and other statutory benefits.
Previously, supervisors earning above ₹15,000 per month were excluded from the “worker” category. The upward revision to ₹18,000 reflects both inflationary trends and the government’s intent to ensure that supervisory staff at the lower end of the wage spectrum are not deprived of protections available to other categories of employees.
The amendment also clarifies the exclusion criteria. Any individual employed in a supervisory capacity who earns more than ₹18,000 per month will not be considered a “worker” under the Code. This distinction is important because it separates managerial or higher-paid supervisory roles from those who are closer to the operational workforce.
By setting this wage ceiling, the government has drawn a clear line between supervisory staff who require statutory protection and those whose compensation levels and responsibilities place them outside the ambit of worker-centric labour laws.
One of the most consequential aspects of this amendment is the extension of legal protections to supervisors earning up to ₹18,000 per month. By falling under the “worker” definition, these employees will now gain access to statutory benefits and safeguards that were previously reserved for blue-collar or lower-earning staff.
This includes:
- Minimum Wage Protection: Supervisors classified as workers will be entitled to minimum wages as notified by the appropriate government.
- Timely Payment of Wages: They will be covered under provisions ensuring timely disbursement of wages without unauthorized deductions.
- Overtime and Bonus Eligibility: Supervisors within the threshold may qualify for overtime payments and statutory bonus schemes.
- Access to Grievance Redressal Mechanisms: Being recognized as workers allows them to seek remedies under labour dispute resolution frameworks.
- Coverage under Social Security Laws: Their classification as workers strengthens their eligibility for schemes such as Provident Fund (PF) and Employees’ State Insurance (ESI), subject to other statutory conditions.
This expansion of coverage is expected to improve job security and financial stability for thousands of supervisors across manufacturing, services, and other sectors.
The amendment also ensures consistency across labour legislation. The Industrial Relations Code, 2020, had already set the wage limit for supervisors at ₹18,000 per month. By harmonizing the Code on Wages with this threshold, the government has eliminated discrepancies that previously existed between different labour codes.
This alignment is crucial for employers and HR professionals, as it simplifies compliance requirements and reduces ambiguity in employee classification. It also reflects the government’s broader effort to streamline and modernize India’s labour laws under the four labour codes framework.
For employers, this amendment necessitates a careful review of wage structures and employee classifications. HR departments will need to:
- Reassess Supervisory Roles: Identify supervisors earning up to ₹18,000 and reclassify them as workers under the Code.
- Update Payroll Systems: Ensure that wage payments, deductions, and benefits comply with worker-related statutory requirements.
- Revise Contracts: Employment contracts may need to be updated to reflect the new classification and entitlements.
- Strengthen Compliance Audits: Organizations must prepare for inspections and audits by labour authorities, ensuring that supervisory staff within the threshold are not denied statutory benefits.
This transition may involve additional administrative effort, but it also provides an opportunity for employers to strengthen employee relations by demonstrating compliance and fairness.
The revision of the wage limit comes at a time when India’s labour market is undergoing significant transformation. Rising living costs, inflationary pressures, and the need for inclusive growth have prompted policymakers to revisit wage thresholds and employee protections.
By extending statutory benefits to more supervisors, the government aims to reduce inequality between different categories of employees. Supervisors often occupy a middle ground—bearing responsibility for overseeing workers while not enjoying the privileges of managerial staff. This amendment acknowledges their contribution and ensures they are not left vulnerable.
Initial reactions from industry stakeholders and labour unions highlight both opportunities and challenges.
- Labour Unions: Worker representatives have welcomed the amendment, noting that it will provide much-needed protections to supervisors who often face long hours and demanding responsibilities without adequate safeguards.
- Employers: Some employers have expressed concern about the potential increase in compliance costs, particularly in sectors with large supervisory workforces. However, many acknowledge that the alignment with the Industrial Relations Code simplifies legal obligations.
- HR Professionals: Compliance experts view the amendment as a positive step toward clarity and consistency, though they caution that organizations must act swiftly to update policies and systems.
From a legal perspective, the amendment strengthens the enforceability of worker rights. Labour courts and tribunals will now have clearer criteria for determining who qualifies as a worker, reducing disputes over classification.
Administratively, labour authorities will need to update their inspection protocols to reflect the new threshold. Employers may face increased scrutiny to ensure that supervisors earning up to ₹18,000 are not excluded from statutory benefits.
The amendment is part of a broader effort to modernize India’s labour laws and make them more responsive to contemporary economic realities. As the government continues to implement reforms under the four labour codes, further adjustments to wage thresholds and employee classifications may be expected.
For supervisors, the change represents a tangible improvement in their legal standing and access to benefits. For employers, it underscores the importance of proactive compliance and transparent HR practices.
The Ministry of Labour and Employment’s amendment to the Code on Wages, 2019, raising the supervisory wage limit to ₹18,000 per month, is a landmark development in India’s labour law landscape. By redefining the “worker” category, the government has extended statutory protections to a larger segment of supervisory staff, ensuring greater fairness and consistency across labour legislation.
While employers will need to adapt to the new compliance requirements, the amendment ultimately strengthens the social security framework and promotes inclusive growth. It reflects a balanced approach—acknowledging the responsibilities of supervisors while safeguarding their rights as workers.
As industries adjust to this change, the focus will be on effective implementation, transparent communication, and building trust between employers and employees. The amendment is not just a legal update; it is a step toward a more equitable and resilient labour market in India.
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