The Government of Punjab on December 29, 2025, issued the Draft Code on Wages (Punjab) Rules, 2026. They shall extend to the whole of State of Punjab.
The rules lay down the method, norms, and conditions for fixing and regulating minimum wages under the relevant labour laws in Punjab.
• Calculation of Minimum Wages
Minimum wages are fixed on a daily basis, considering a standard working-class family (earning worker, spouse, and two children).
The calculation is based on:
2700 calories per consumption unit per day
Annual clothing requirement of 66 meters per family
Housing cost at 10% of food and clothing expenses
Fuel, electricity, and miscellaneous expenses at 20% of minimum wages
Education, medical needs, recreation, and contingencies at 25% of minimum wages
Daily wages are divided by 8 to get hourly wages and multiplied by 26 to get monthly wages, with specified rounding rules.
• Norms for Fixation of Wages
The State Government may classify areas into metropolitan, non-metropolitan, and rural.
o A Technical Committee is constituted to advise on skill categorization, consisting of government officials, technical experts, employer representatives, and worker representatives.
o Occupations are classified into unskilled, semi-skilled, skilled, and highly skilled, aligned as far as possible with national skill frameworks.
o If an occupation is not specifically listed, it will be placed in the most appropriate category, with the Technical Committee’s decision being final.
o Employees working continuously in the same skill category for more than five years are entitled to a 5% wage increase for every additional five-year period.
o Employers must pay at least the notified minimum wages applicable to the establishment, regardless of headquarters or branch location.
o Any change in the Consumer Price Index (CPI) applies uniformly across Punjab.
• Revision of Dearness Allowance
The Labour Commissioner, Punjab reviews and revises wages and cost-of-living allowance twice a year (before 1st April and 1st October) based on the average CPI of the previous six months.
• Working Hours
A normal working day consists of 8 hours of work, with rest intervals not exceeding 1 hour, and total spread not exceeding 12 hours.
Special provisions may apply to agricultural employment.
• Weekly Day of Rest
Employees are entitled to one rest day per week, usually Sunday, after six continuous working days.
If required to work on a rest day, a substituted rest day must be provided, subject to limits.
Wages for rest days and substituted rest days are regulated, including provisions for overtime and piece-rate workers.
Employees receive the more favourable terms if provided under any other law, award, or contract.
• Night Shifts
For shifts extending beyond midnight:
The rest day is counted as 24 consecutive hours from the end of the shift.
Hours worked after midnight are counted towards the previous working day.
Overall, these provisions aim to ensure fair wage fixation, regular revision linked to cost of living, regulated working hours, adequate rest, and protection of employee rights.
Notice is hereby given that the draft will be taken into consideration by the Government on or after the expiry of a period of 30 days from the date of publication of this notification in the Official Gazette, together with any objection or suggestion, which may be received by the Labour Commissioner, Punjab, Model Welfare Centre (Kirat Bhawan), Phase-X, Sector-64, Sahibzada Ajit Singh Nagar (Mohali), (Email: [email protected] or [email protected]) from any person or organization with respect to the said draft before the expiry of the period.
[Notification No. LaboMisc/193/2025-42/1080]
