Section 50 of the Code on Wages, 2019: Records, Returns and Notices
Section 50 of the Code on Wages, 2019 deals with the records an employer must maintain, information that must be displayed at the establishment, wage slips to be issued to employees, and a limited exemption for certain small employers engaged for agricultural or domestic purposes.
What does Section 50 require?
In practical terms, Section 50 creates three principal compliance requirements for employers: maintaining prescribed employment and wage records, displaying specified wage-related information at the workplace, and providing wage slips to employees.
| Provision | Main requirement |
|---|---|
| Section 50(1) | Maintain prescribed registers relating to employees, muster roll, wages and other required particulars. |
| Section 50(2) | Display prescribed wage and Inspector-cum-Facilitator information prominently at the establishment. |
| Section 50(3) | Issue wage slips to employees in the prescribed form and manner. |
| Section 50(4) | Provides a limited exemption where not more than five persons are employed for agriculture or domestic purpose, subject to proof of wage payment when demanded. |
Text and Explanation of Section 50
Section 50(1) - Registers and employment records
50. (1) Every employer of an establishment to which this Code applies shall maintain a register containing the details with regard to persons employed, muster roll, wages and such other details in such manner as may be prescribed.
This provision requires employers covered by the Code to maintain prescribed employment and wage records. The precise forms and manner of maintaining the registers are governed by the applicable rules.
Registers under the Code on Wages (Central) Rules, 2025
For establishments governed by the Central Rules, Rule 51 of the Code on Wages (Central) Rules, 2025 provides for maintenance of prescribed registers electronically or in physical form.
- Employee Register in Form I;
- Register of Wages, Overtime, Advances, Fines and Deductions for Damage and Loss in Form IV; and
- Attendance Register-cum-Muster Roll in Form IX.
Registers required under the Central Rules are to be preserved for five years after the date of the last entry.
Section 50(2) - Notice to be displayed at the establishment
50. (2) Every employer shall display a notice on the notice board at a prominent place of the establishment containing the abstract of this Code, category-wise wage rates of employees, wage period, day or date and time of payment of wages, and the name and address of the Inspector-cum-Facilitator having jurisdiction.
The provision is intended to ensure that important wage information is readily available to employees at the workplace. The notice should therefore be placed at a prominent location where employees can reasonably see it.
Information required on the notice board
- Abstract of the Code on Wages;
- category-wise wage rates of employees;
- wage period;
- day or date and time of payment of wages; and
- name and address of the Inspector-cum-Facilitator having jurisdiction.
Section 50(3) - Wage slips
50. (3) Every employer shall issue wage slips to the employees in such form and manner as may be prescribed.
Rule 52 of the Code on Wages (Central) Rules, 2025 provides that an employer covered by those Rules must issue the prescribed wage slip electronically or in physical form in Form V on or before payment of wages.
Section 50(4) - Limited exemption for agriculture or domestic purpose
50. (4) The provisions of sub-sections (1) to (3) shall not apply in respect of the employer to the extent he employs not more than five persons for agriculture or domestic purpose:
Provided that such employer, when demanded, shall produce before the Inspector-cum-Facilitator the reasonable proof of the payment of wages to the persons so employed.
This is a limited exemption. It concerns an employer who employs not more than five persons for agriculture or domestic purpose. Even where the exemption applies, the employer must be capable of producing reasonable proof of payment of wages when demanded by the Inspector-cum-Facilitator.
Meaning of "domestic purpose"
Explanation: For the purposes of this sub-section, the expression "domestic purpose" means the purpose exclusively relating to the home or family affairs of the employer and does not include any affair relating to any establishment, industry, trade, business, manufacture or occupation.
Therefore, employment connected with a business, establishment, industry, trade, manufacture or occupation does not become employment for "domestic purpose" merely because the employer is an individual.
Employer Compliance Checklist under Section 50
- Determine whether the establishment is covered by the Code on Wages, 2019.
- Identify whether the Central Government or State Government is the appropriate Government for the establishment.
- Maintain the employee, attendance, muster and wage records prescribed by the applicable rules.
- Keep the required records updated and preserve them for the prescribed period.
- Display the information required by Section 50(2) prominently at the establishment.
- Issue prescribed wage slips to employees within the time required by the applicable rules.
- Keep reliable proof of payment of wages.
- Where relying on the Section 50(4) exemption, verify that its numerical and purpose-based requirements are actually satisfied.
Why Section 50 is important
Proper records provide documentary evidence of employment, attendance, wages, overtime, deductions and wage payments. They also assist employees, employers and labour authorities in verifying compliance with the Code.
Employers should also remember that the applicable State rules may need to be considered where the State Government is the "appropriate Government" under the Code. The Central Rules should therefore not automatically be assumed to govern every establishment.
Related Provisions
Section 50 should be read together with Section 49 - Appeal and Section 51 - Appointment of Inspector-cum-Facilitators and their powers.