New Wage Code Rule: Supervisors Earning Up to ₹18,000 Now Eligible for Overtime

New Wage Code Rule: Supervisors Earning Up to ₹18,000 Now Eligible for Overtime

News Alert: The Ministry of Labour and Employment has issued Gazette Notification S.O. 454(E) dated January 30, 2026, defining the new wage threshold for “Supervisory” staff under the Code on Wages, 2019. The notification sets the monthly wage limit at ₹18,000.

Legal Impact: Any employee working in a supervisory capacity who earns up to ₹18,000 per month will now be legally classified as a “Worker”. This grants them statutory protection under labour laws, including the right to overtime pay, minimum wages, and bonus. Supervisors earning above ₹18,000 are excluded from the “Worker” definition.

⚠️ Gazette Notification (Jan 2026):

Wage Limit: ₹18,000 per month.

Below ₹18k: Status = “Worker” (Protected).

Above ₹18k: Status = “Non-Worker” (Supervisor/Manager).

Applicable: Central Sphere Industries.

Why is this ₹18,000 Limit Important?

Previously, many companies classified low-paid supervisors (like Shift In-charges or Team Leaders) as “Management Staff” to avoid paying overtime (OT). This notification plugs that loophole.

Role Monthly Salary Legal Status (New) Overtime Eligible?
Supervisor ₹15,000 Worker Yes
Supervisor ₹17,500 Worker Yes
Supervisor ₹19,000 Non-Worker No

This definition is also significant for discussions around the 8th Pay Commission. Since the government legally recognizes ₹18,000 as the threshold for a “Worker” vs “Supervisor” in the private sector, unions argue that the minimum salary for a government employee (Entry Level) must be significantly higher than this baseline in the next pay revision.

Connection to EPF and ESI Limits

Confusion often arises between different wage limits. This ₹18,000 limit is strictly for the definition of ‘Worker’ under the Wage Code.

  • EPF Wage Ceiling: Currently ₹15,000 (Expected to rise to ₹21,000).
  • ESI Wage Ceiling: Currently ₹21,000.
  • Wage Code Supervisor Limit: ₹18,000 (New Notification).
Does this apply to Central Govt Employees?

No. Central Government employees are governed by CCS (Conduct) Rules and Pay Commission recommendations. This notification applies to establishments under the Industrial Disputes Act/Code on Wages.

Can a Supervisor claim Overtime now?

Yes, if their monthly wage is ₹18,000 or less, they are treated as “Workers” and are entitled to overtime at double the ordinary rate of wages for extra hours worked.

हिंदी सारांश

श्रम मंत्रालय ने 30 जनवरी 2026 को गजट नोटिफिकेशन जारी कर ‘सुपरवाइजर’ के लिए वेतन सीमा 18,000 रुपये तय की है। इसका मतलब है कि अगर कोई सुपरवाइजर 18,000 रुपये तक महीना कमाता है, तो कानूनन उसे ‘मजदूर’ (Worker) माना जाएगा और उसे ओवरटाइम आदि का लाभ मिलेगा। 18,000 से ज्यादा कमाने वाले सुपरवाइजर इस श्रेणी से बाहर रहेंगे।

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🚨 Labour Law Update 2026

👉 Wage Limit: ₹18,000/month.
👉 Rule: Supervisors earning up to ₹18k are “Workers”.
👉 Benefit: Eligible for Overtime Pay.
👉 Notification: S.O. 454(E) (Jan 30).

👇 Read Full Gazette Details:


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