In a significant move toward harmonizing India’s labour law framework, the Ministry of Labour & Employment has issued a notification dated 30 January 2026, revising the wage ceiling applicable to the definition of “worker” under the Code on Wages, 2019.
What Changed?
Earlier, there was inconsistency across Labour Codes regarding the wage threshold for supervisory employees:
| Labour Code | Wage Threshold for Supervisory Role |
| Code on Wages, 2019 | ₹15,000/month |
| IR Code & OSH Code | ₹18,000/month |
To eliminate this ambiguity, the Central Government has now standardized the ceiling to ₹18,000/month under the Code on Wages as well.
Official Notification Highlights
- Date: 30 January 2026
- Notification No.: S.O. 454(E)
- Authority: Section 2(z)(d) of the Code on Wages, 2019
- Key Provision:
Any person employed in a supervisory capacity and drawing wages exceeding ₹18,000/month shall be excluded from the definition of “worker” under the Code on Wages.
Who Is a “Supervisory Employee”?
The term “supervisory capacity” is not defined in the Code itself. Its interpretation relies on judicial precedents and functional tests, not job titles.
Functional Indicators:
- Oversees work of subordinates
- Allocates tasks and monitors performance
- Recommends or approves leave, discipline, or appraisals
- Uses independent judgment without core managerial powers
Courts assess the dominant nature of duties, not designations. A “Team Lead” earning ₹19,000/month may be excluded from “worker” status if their role is supervisory in substance.
Why This Matters
- Legal Classification: Determines eligibility for wage-related protections, dispute resolution forums, and union rights.
- Compliance Impact: Employers must reassess job roles and wage structures to ensure correct classification.
- HR Advisory: Update employment contracts, HR manuals, and payroll systems to reflect the ₹18,000 threshold.
What Should Employers Do?
- Audit supervisory roles and wage levels
- Reclassify employees who now fall outside “worker” definition
- Update PoSH, wage, and IR documentation accordingly
- Train HR teams on functional classification vs. title-based assumptions.
Final Takeaway
This notification marks a critical step toward uniformity across India’s labour codes. Employers must now treat ₹18,000/month as the defining wage ceiling for supervisory roles under the Code on Wages. Legal classification must be function-based, not title-driven and HR teams must act swiftly to align policies and records.