Instructions regarding timely payment of wages/ salary to manpower engaged directly/ through contractor as per Code on Wages, 2019: Department of Expenditure O.M. dated 08.05.2026
No F.2/6/2026-PPD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
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709, Chanderlok Building,
Janpath, New Delhi
08.05.2026
OFFICE MEMORANDUM
Subject: Issuing of instructions regarding timely payment of wages/ salary to manpower engaged as per Code of Wages, 2019.
The undersigned is directed to refer Ministry of Labour & Employment (MoLE) DO No. P-11023/08/2025-WC(E-181329) dated 19.01.2026 regarding the instructions to be issued with respect to the subject matter and to say as under.
(i) Procuring entities are advised to adhere to Instructions, as placed at Annexure-l, with respect to timely payment of wages/ salary and other statutory payments to manpower/employees engaged directly/ through contractor as per Code on Wages, 2019 and other Labour Codes.
(ii) In case of any clarifications with respect to the instructions placed at Annexure-I, the same may be referred to Ministry of Labour and Employment.
(iii) It is requested that the instructions may be brought to the notice of all organizations, Constitutional/ Statutory bodies under their administrative control including autonomous bodies as well as Central Public Sector Enterprises (CPSEs) etc.
2. This issues with the approval of Competent Authority.
(Praveen Kujur)
Under Secretary to the Government of India
Tel:011-23733771
email: praveen.kujur[at]nic.in
To
(i) Secretaries to All Central Government Ministries/ Departments.
(ii) Financial Advisers of Central Government Ministries/ Departments
Copy to: Secretary, Department of Public Enterprises (with a request for also reiterating these instructions for compliance of all CPSEs in this regard).
Annexure – I
Instructions on timely payment of wages/ salary to manpower/employee engaged directly/ through contractor as per Code on Wages, 2019
Government of India has consolidated 29 Labour laws into four comprehensive Labour Codes, namely (I) the Code on Wages, 2019, (ii) the Industrial Relations Code, 2020, (ill) the Occupational Safety, Health and Working Conditions Code, 2020, and (iv) the Social Security Code, 2020 and these have been made effective from 21.11.2025. These reforms aim to improve protections for workers including Contract Workers, by ensuring stronger wage safeguards, expanded social security and better working conditions under a transparent and streamlined compliance system.
The Ministries/Departments & organizations have been engaging manpower either through outsourcing agencies/contractors or by directly hiring contractual manpower for different nature of wages to the workers as mandated by the law as enshrined in the afore-mentioned labour codes.
In particular, the Code on Wages, 2019 lays down provisions relating to minimum wages to all employees and timely payment of wages. In this context, and in order to ensure full compliance with statutory provisions, it is directed for implementation of the following:
- All contractors engaged in the Ministries’ Departments/ Field offices/ Autonomous/ Statutory bodies may be instructed to disburse wages/ salary of their employees deployed in the respective offices on time and evidence of the same should be verified by the DDOs concerned every month.
- As per Section 55(3) of the OSH&WC code, 2020, the principal employer is responsible for ensuring that the contractor pays wages timely in accordance with the Code.
- Section 17(1) of the Code on Wages, 2019 enjoins that the employer shall pay or cause to be paid wages to all the employees irrespective of wage ceiling, based on the type of the employment as follows:
WAGE PERIOD TIME LIMIT FOR PAYMENT OF WAGES Daily Wages End of shift Weekly Before weekly holiday Fortnightly Within 2 days of end of fortnight Monthly Within 7 days of next month - The contractor shall disburse the wages through bank transfer or electronic mode as per timelines in para 3 above and inform the principal employer electronically of the amount so paid.
- All the manpower hiring RFPs/ Contracts should have penalty provisions in case of non-compliance by the contractor of the statutory requirement of timely payments to be made to the contractual employees.
- All Principal employers shall ensure that sufficient funds are made available for timely payment to outsourced manpower before entering into such contracts.
- The principal employers on entering into contracts on GeM or otherwise should immediately block/earmark funds for the payment of outsourced manpower for the complete contract period or till the end of the financial year, whichever is earlier.
- For manpower contracts where payments are on the basis of reimbursement of wages to contractors, all principal employers must ensure that the contractors after making payment to its employees by 7th of each month submit their bills not later than 10th of the same month. All DDOs to ensure that these bills are cleared, not later than 15th of the same month.
- In case the payment is delayed inordinately, the principal employer shall pay directly to the contract workers as per terms and conditions, which shall be clearly included in the contract agreement. Further in such cases where the contractors fails to make payment and the Principal employer has to step in to make direct payments action will be taken to blacklist the contractor by the ministry and for repeat offence the contractor will be blacklisted from all the ministries and departments of Government of India in terms of Rule 151 of GFRs,2017 and the guidelines issued by DoE in this regard.
- All DDOs should generate reports from GeM/PFMS and monitor all contracts under their jurisdiction for timely payment to outsourced employees and reimbursement to the contractors.
- The Secretaries of all Ministries/ Departments should review timely payment of wages in their SOMs.
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