Draft Labour Code Rules – Delhi
March 20, 2026
1318
Draft Status: All Delhi rules are draft rules — not yet finally notified. Verify with the Delhi Labour Department before making compliance changes.
Code on Wages, 2019
The 50% Basic Wage Rule — The Biggest Change for Payroll
Your employees’ allowances cannot exceed 50% of their total remuneration. This means basic salary + DA must be at least 50% of total remuneration. If allowances cross 50%, the excess gets added back into “wages” — increasing PF, gratuity, and bonus calculations.
| Counted in the 50% | Employer PF contribution, pension contribution, statutory bonus |
| NOT counted in 50% | Gratuity, ESI, HRA, conveyance, travel allowance, overtime, performance bonuses |
| Action needed | Review all CTC structures so basic + DA ≥ 50% of total remuneration |
Other Key Points
- Overtime pay = 2× ordinary wages. Daily wage for OT calculation = monthly wages ÷ 26.
- Minimum wages are set by Delhi — must always be above the Central floor wage.
- Statutory bonus requires minimum 30 working days in a year.
- Wages can be paid by cash, cheque, or bank transfer.
- Annual performance incentives are not part of “wages”.
Industrial Relations Code — Delhi Rules
Bi-Partite Forums
| Works Committee | Mandatory if 100+ workers. Max 20 members. Worker reps must be ≥ employer reps. Must meet at least every 3 months. |
| Grievance Redressal Committee (GRC) | Equal employer & worker reps, max 10 members.
Delhi Women must be represented in proportion to their share of the workforce. GRC must resolve grievances within 30 days. |
Trade Unions
- Minimum union subscription: ₹100/year per member.
- A single union needs >25% membership to be the sole negotiating union.
- State Trade Union recognition: 20,000+ members across at least 4 industries in Delhi.
- TU general funds can only be spent on salaries, legal costs, industrial disputes, and welfare.
Standing Orders
- Mandatory for establishments with 300+ workers.
- Delhi Must be maintained in both Hindi and English.
- Adopt Central Model Standing Orders → notify certifying officer → no objection within 30 days = automatically certified.
Strikes & Lock-outs
- Workers must give 14 days’ advance notice before going on strike.
- Delhi Lock-out notice must go to: TU secretaries + Conciliation Officer + Joint/Dy. Labour Commissioner of the district + Labour Commissioner, GNCT Delhi.
Retrenchment, Lay-off & Closure
| Prior permission | 300+ workers — must get GNCT Delhi approval before retrenchment, lay-off, or closure. |
| Retrenchment compensation | 15 days’ wages for each completed year of service. |
| Notice required | 1 month written notice or 1 month’s wages in lieu. |
| Closure notice | At least 90 days before closure — apply to GNCT Delhi Labour Dept. |
| Re-employment | Must offer vacancy to retrenched workers at least 10 days before filling it. |
| Re-skilling fund | Deposit 15 days’ wages within 10 days of retrenchment. Delhi GNCT must disburse to workers within 45 days of receipt. |
Industrial Tribunal — Delhi Specific
Two-member tribunal: Judicial Member + Administrative Member.
| Judicial Member salary | Delhi ₹2,25,000/month fixed + Group A allowances |
| Admin Member salary | Delhi ₹1,75,000/month fixed + Group A allowances |
| Admin Member qualification | Delhi Must have served as Joint Secretary or above in GNCT Delhi for at least 3 years. |
| Both member tenures | 4 years or until age 65, whichever is earlier. |
| Adjournments | Max 3 per party; max 1 week each. Award uploaded on portal within 1 month. |
Code on Social Security — Delhi Rules
PF & ESI (Unchanged)
- EPF: establishments with 20+ workers. Administered by Central EPFO.
- ESI: establishments with 10+ workers. Administered by Central ESIC.
- Delhi has its own ESI Court, under Delhi High Court superintendence.
Gratuity
| Who qualifies | 5 years continuous service. Fixed-term employees qualify after just 1 year. |
| How much | 15 days’ wages × completed years of service (daily wage = monthly wages ÷ 26).
For FTE, calculation shall be made on pro-rata basis |
| Employee must apply | Within 30 days of gratuity becoming due (legal heir: within 1 year). |
| Employer must respond | Within 15 days — issue Form-V with amount or reason for rejection. |
| Payment deadline | Within 30 days of receiving the application. |
| Minor nominees | Delhi Invest only in SBI or Nationalised Bank term deposits. |
Maternity Benefit
- 26 weeks for first two children; 12 weeks for third child onwards.
- 12 weeks for adoptive or commissioning mothers.
- Employer may offer work-from-home after maternity leave if nature of work allows.
BOCW (Building & Construction Workers)
- Delhi constitutes its own BOCW Welfare Board.
- Delhi At least 1 appointed Board member must be a woman.
- 1% cess on construction cost funds worker welfare schemes.
- Board meets at least once every 3 months. Tenure: 3 years.
OSH Code — Delhi Rules
Register Your Establishment First
Register on the Delhi Labour Dept portal within 60 days of the Code applying to you. A 25% per annum late fee applies if you miss the deadline. Include inter-state migrant worker details in Form-02 with your application.
| Number of Employees | Registration Fee |
|---|---|
| Up to 50 | ₹2,000 |
| 51 – 100 | ₹3,000 |
| 101 – 200 | ₹5,000 |
| 201 – 500 | ₹7,000 |
| 501 – 1,000 | ₹10,000 |
| Above 1,000 | ₹15,000 |
Working Hours
- Maximum 60 hours per week.
- One paid day of rest per week (substitution allowed with prior notice).
- Delhi Overtime limit: 144 hours per quarter
- Overtime pay = 2× ordinary wages. OT fractions: 15–30 min = 30 min; >30 min = 1 hour.
- Issue appointment letters (Form-06) to all workers. Existing workers without letters must receive them within 3 months.
Medical Examinations
- Workers aged 45 years or older: free annual medical exam within 120 days of year start.
- Workers in hazardous processes: free annual exam within 30 days of year start (additional tests: PFT, audiometry, sputum).
- Any notified occupational disease must be reported to Inspector-cum-Facilitator within 1 week of diagnosis.
- Accident causing death or serious injury: notify Inspector immediately by phone/email + written Form-07 within 24 hours.
Safety Committee
- Mandatory for 250+ workers, OR hazardous processes, OR dangerous operations.
- Delhi Women workers must be adequately represented in proportion to their share of workforce.
- Delhi Committee tenure: 3 years. Must meet at least once every quarter.
- Employer must act on Safety Committee recommendations within 15 days.
Safety Officer
- Factories with 500+ workers: one Safety Officer per 500 workers.
- Hazardous-process factories with 250+ workers: one Safety Officer per 250 workers.
- Qualification: Engineering/Tech degree + 2 yrs supervisory experience; OR Science degree + 5 yrs; OR Engineering diploma + 5 yrs.
Special Protections for Women Workers
Delhi adds 14 specific conditions when employing women — significantly more detailed than Central rules. Items marked ⬥ are Delhi-specific additions.
- 9:00 PM-7:00 AM (summer season) & 8:00 PM-8:00 AM (winter season)
- Get written consent before night deployment.
- No deployment against maternity benefit provisions.
- Provide safe transport (pick-up and drop from residence).
- All facilities — toilets, washrooms, water — must be well-lit and near the workplace.
- Provide safe, secure and healthy working conditions.
- ⬥Minimum two woman must be on duty at all times.
- Deploy women on a rotational basis.
- ⬥ Install CCTV cameras where women work.
- Provide crèche wherever needed (mandatory for 50+ women workers).
- ⬥ Hold grievance day meeting with women’s representatives once every 8 weeks.
- ⬥ Send six-monthly report to Inspector on women in night shifts.
- ⬥ Deploy women security guards at women’s workplaces.
- Comply with the POSH Act, 2013 (Sexual Harassment at Workplace).
- Crèche: min. 15 sq ft per child; ages 2–6 yrs; appoint a qualified woman as Crèche-in-charge.
Contract Labour
Get a contractor licence from the Delhi Labour Dept portal. Licence issued within 30 days; deemed issued if no defect communicated.
| Workers Employed | Annual Licence Fee | Security Deposit |
|---|---|---|
| 50 – 100 | ₹5,000 | ₹50,000 |
| 101 – 250 | ₹10,000 – ₹20,000 | ₹1 – 2 lakh |
| 251 – 750 | ₹25,000 – ₹30,000 | ₹2.5 – 3 lakh |
| 751 – 2,000 | ₹40,000 – ₹60,000 | ₹4 – 6 lakh |
| Above 2,000 | ₹75,000 | ₹7.5 lakh |
- Contract workers doing the same job as permanent workers get the same wages and working conditions.
- All contract workers must be enrolled in EPFO and ESIC.
- If contract workers are at your premises, you are responsible for toilets, water, first aid, canteen, and crèche.
- Wages for non-construction contract workers: A/c Payee Cheque or ECS only.
- Notify licensing authority of work order details within 15 days of receipt.
Records & Annual Return
- Form-10: electronic register of workers, wages, overtime, fines — always available for inspection.
- Form-11: muster roll (electronic or manual).
- Form-12: leave register — preserve for 2 years after last entry.
- Form-15: annual return — file electronically by 31 January each year.
Quick Reference — Key Numbers
- 100+ workers: Works Committee mandatory
- 250+ workers: Safety Committee mandatory
- 300+ workers: Standing Orders required + prior GNCT permission for retrenchment/closure
- 500+ workers: Safety Officer mandatory (1 per 500)
- 50+ women: Crèche mandatory
- 50% rule: Allowances cannot exceed 50% of Total remuneration
- 144 hrs/qtr: Max overtime per quarter in Delhi (Central: 125 hrs)
- 60 hrs/week: Maximum weekly working hours
- 14 days: Prior notice required before a strike
- 30 days: GRC must resolve grievances within 30 days
- 90 days: Advance notice required before establishment closure
- 15 days wages: Retrenchment compensation per year of service; also re-skilling fund deposit amount
- 45 days: Delhi Govt must disburse re-skilling fund to retrenched workers
- Every 8 weeks: Employer grievance day meeting with women workers
- 31 January: Annual return (Form-15) filing deadline
⚠ Important Disclaimer
All rules summarised in this document are draft rules issued by the GNCT Delhi Labour Department and have not been finally notified. Provisions may change before final notification. The Central Code on Wages (Central) Rules, 2025 are also in draft form (published 30 December 2025). Always verify the current status at delhi.gov.in/labour or the Ministry of Labour & Employment website before making any compliance changes.
All rules summarised in this document are draft rules issued by the GNCT Delhi Labour Department and have not been finally notified. Provisions may change before final notification. The Central Code on Wages (Central) Rules, 2025 are also in draft form (published 30 December 2025). Always verify the current status at delhi.gov.in/labour or the Ministry of Labour & Employment website before making any compliance changes.
Please find the official notification below:
