What are the Andaman and Nicobar Islands' rules under the Code on Wages, 2019?
Jurisdiction: Andaman & Nicobar Islands state rules under the Code on Wages, 2019.
The Andaman and Nicobar Administration notified its rules under the Code on Wages, 2019 in the Andaman and Nicobar Extraordinary Gazette dated 28 January 2026. The rules fix the minimum wage methodology, working hours and weekly rest, deduction and advance limits, the State Advisory Board, undisbursed dues, and the registers, wage slips and compounding procedure employers follow. This page synthesizes those obligations from the gazette; the verbatim text is on the linked /states page and the source PDF is below.
Key facts
- Parent code
- Code on Wages, 2019
- Jurisdiction
- Andaman & Nicobar Islands (state rules)
- Notified
- 28 January 2026
- Gazette reference
- Rules under the Code on Wages, 2019 for the Union Territory of Andaman and Nicobar Islands, published in the Andaman and Nicobar Extraordinary Gazette dated 28 January 2026 (Andaman and Nicobar Administration, Labour Department); the parsed gazette begins at the definitions clause, so the exact short title and notification number appear in the source PDF
Key obligations
Scope, definitions and repeal
Source: Rule 2 and the repeal-and-savings clause (Chapter I)
The rules define their key terms and, on commencement, repeal the earlier Andaman and Nicobar minimum-wage and payment-of-wages rules.
- The rules apply throughout the Union Territory and adopt the Code's definitions, with terms such as Board (the A & N Islands Advisory Board under section 42), Inspector-cum-Facilitator and the skill categories defined for the rules (rule 2).
- On commencement the rules repeal the Andaman and Nicobar Islands Minimum Wages Rules, 1972 and the Andaman and Nicobar Islands Payment of Wages Rules, 1955, without affecting anything already done or any right or liability accrued under them (repeal-and-savings clause).
- The parsed gazette text begins at the definitions clause, so rule 1 (the short title and commencement) and the rule-making preamble are not reproduced in the parsed source; the exact short title is in the source PDF.
Minimum wages and working-hour norms
Source: Rules 3 to 11 (Chapter II)
Chapter II sets the minimum-wage methodology, the technical committee, dearness allowance, the working day, weekly rest and the wage period.
- Minimum wages are fixed at or above the Central floor wage on a day basis for a standard working-class family of three adult consumption units, using a net intake of 2,700 calories per day per unit, 66 metres of cloth per year, and set allocations for housing (10% of food and clothing spend), fuel and other items (20%) and education, medical and contingency costs (25%); the daily rate is divided by eight for an hourly rate and multiplied by twenty-six for a monthly rate (rule 3).
- The Administration fixes wages for unskilled, semi-skilled, skilled and highly skilled occupations across the Union Territory on the advice of a technical committee chaired by the Labour Commissioner, which categorizes occupations by reference to Schedule A (rule 4).
- Dearness allowance is endeavoured to be computed twice a year, on 1 January and 1 July, against the All India Consumer Price Index for Industrial Workers (rule 5).
- The normal working day comprises ten hours of work plus rest intervals totalling not more than one hour, with no work beyond forty-eight hours a week and the spread-over capped at twelve hours a day, and no more than six hours of continuous work before a rest interval of at least half an hour (rule 6).
- Employees are entitled to a weekly rest day, ordinarily Sunday in a six-day week, with substitution allowed but capped so no employee works more than ten days consecutively without a rest day (rule 7).
- Night shifts crossing midnight, the extent of spread-over for the section 13(2) classes of employees, and the monthly longer wage period under section 14 are provided for (rules 8 to 10).
Payment of wages, deductions and advances
Source: Rules 12 to 20 (Chapter III)
Chapter III caps deductions and advance recovery, and sets the fine and damage-deduction procedures.
- Where authorized deductions in a wage period would exceed 50% of an employee's wages, the excess is carried forward and recovered later, still capped at 50% of wages in any month (rule 12).
- The Assistant Labour Commissioner is the authority to approve fines, the fine notice is displayed in Hindi and English, and fine approval is decided within thirty days of intimation or is deemed approved (rules 13 to 15).
- Before deducting for damage or loss, the employer must explain the loss to the employee in writing, give an opportunity to respond, and intimate any deduction within fifteen days of making it (rule 17).
- Recovery of advances given after employment began, or of unearned advance wages, is made in installments that do not exceed 50% of the employee's wages in any wage period, recorded in Form I (rule 18).
- Loans may be granted up to ten times the employee's salary at the bank rate as notified and agreed, and recovery of house-building and other approved loans is regulated by the Administration (rules 19 to 20).
State Advisory Board
Source: Rules 21 to 36 (Chapter V)
Chapter V constitutes the State Advisory Board and sets its meetings, quorum, voting, term and disqualifications.
- The Board consists of the persons nominated by the Administration under section 42, including employer and employee representatives and independent persons (rule 21).
- The Chairperson calls meetings, and must call one within thirty days on a written request of not less than half the members, with at least fifteen days' notice (seven days for an emergency meeting) (rules 22 to 23).
- No business is transacted without a quorum of at least one-third of members including one employer and one employee representative, and business is decided by majority with the Chairperson holding a casting vote (rules 25 to 26).
- The term of office of the Chairperson or a member is normally two years, an outgoing member may be re-nominated for not more than three terms in total, and a member absent from three consecutive meetings without intimation ceases to be a member (rules 29, 33 and 35).
- A person is disqualified from the Board if of unsound mind, an undischarged insolvent, or convicted of an offence involving moral turpitude, and the Administration's decision on any question of disqualification is final (rule 36).
Undisbursed dues, registers, wage slips and enforcement
Source: Rules 37 to 50 (Chapters VI to VIII)
Chapters VI to VIII cover undisbursed dues, the single application and appeal, registers and wage slips, inspection, compounding, contractor liability and the inspection scheme.
- Wages due after an employee's death or where the employee's whereabouts are unknown, unpaid for three months, are deposited with the Assistant Labour Commissioner, who disburses to the nominee within two months; wholly undisbursed dues are deposited within fifteen days after the six-month mark, and amounts unclaimed for seven years are transferred to the A & N Islands Unorganised Workers' Social Security Board (rules 37 to 39).
- A single application for claims is filed in Form II and an appeal in Form IV, each decided after notice and hearing by the authority or appellate authority (rules 40 to 41).
- Every employer maintains the register of fines and deductions in Form I and the general registers in Form I and Form VI, preserved for five years, and issues wage slips in Form VII on or before payment of wages (rules 42 to 43).
- The Inspector-cum-Facilitator inspects establishments as assigned, the officer under section 53 holds an enquiry on a complaint, and an accused may apply in Form VIII to compound an offence for 50% of the maximum fine before the notified Gazetted Officer of the Labour Department (rules 44 to 46).
- Where employees are engaged through a contractor the principal employer pays the contractor before the wage date so wages are paid on time and pays minimum bonus directly if the contractor fails, and an inspection scheme fixing a minimum number of inspections is formulated by the Administration (rules 47 to 49).
Frequently asked questions
Official gazette PDF
Rules under the Code on Wages, 2019 for the Union Territory of Andaman and Nicobar Islands, published in the Andaman and Nicobar Extraordinary Gazette dated 28 January 2026 (Andaman and Nicobar Administration, Labour Department); the parsed gazette begins at the definitions clause, so the exact short title and notification number appear in the source PDF