Chapter V - Advisory Board

Section 42: Central Advisory Board and State Advisory Boards - Code on Wages, 2019

Section 42 of the Code on Wages, 2019 provides the statutory framework for the Central Advisory Board and State Advisory Boards. These tripartite advisory bodies bring together representatives of employers, employees and independent members for advice on minimum wages, employment opportunities for women and other matters under the Code.

Current legal status: Section 42 came into force in stages. Sub-sections (1), (2), (3), (10) and (11), to the extent relating to the Central Advisory Board, were brought into force on 18 December 2020. Sub-sections (4) to (9), concerning State Advisory Boards, came into force on 21 November 2025. The Central Rules now prescribe the constitution, procedure and related matters for the Central Advisory Board.
ProvisionSection 42, Code on Wages, 2019 (Act 29 of 2019)
ChapterChapter V - Advisory Board
Central BoardEmployer and employee representatives in equal number, independent persons and five State Government representatives.
Women membersOne-third of the members specified in the relevant provisions are required to be women.
Main subjectsMinimum wages, employment opportunities for women, employment of women in specified establishments or employments, and other matters under the Code.

Meaning of "Advisory Board" under the Code

Section 2(b) of the Code defines "Advisory Board" as the Central Advisory Board or, as the case may be, the State Advisory Board constituted under Section 42. Section 42 therefore supplies the composition, functions and procedural framework for these advisory institutions.

Section 42 - statutory text

42. Central Advisory Board and State Advisory Boards.

(1) The Central Government shall constitute the Central Advisory Board which shall consist of persons to be nominated by the Central Government-

(a) representing employers;

(b) representing employees which shall be equal in number of the members specified in clause (a);

(c) independent persons, not exceeding one-third of the total members of the Board; and

(d) five representatives of such State Governments as may be nominated by the Central Government.

(2) One-third of the members referred to in sub-section (1) shall be women and a member specified in clause (c) of the said sub-section shall be appointed by the Central Government as the Chairperson of the Board.

(3) The Central Advisory Board constituted under sub-section (1) shall from time to time advise the Central Government on reference of issues relating to-

(a) fixation or revision of minimum wages and other connected matters;

(b) providing increasing employment opportunities for women;

(c) the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf; and

(d) any other matter relating to this Code,

and on such advice, the Central Government may issue directions to the State Government as it deems fit in respect of matters relating to issues referred to the Board.

(4) Every State Government shall constitute a State Advisory Board for advising the State Government-

(a) in fixation or revision of minimum wages and other connected matters;

(b) for the purpose of providing increasing employment opportunities for women;

(c) with regard to the extent to which women may be employed in such establishments or employments as the State Government may, by notification, specify in this behalf; and

(d) in any other matter relating to this Code, which the State Government may refer from time to time to the Board.

(5) The State Advisory Board may constitute one or more committees or sub-committees to look into issues pertaining to matters specified in clauses (a) to (d) of sub-section (4).

(6) The State Advisory Board and each of the committees and sub-committees thereof shall consist of persons-

(a) representing employers;

(b) representing employees which shall be equal in number of the members specified in clause (a); and

(c) independent persons, not exceeding one-third of the total members of the Board or committee or sub-committee, as the case may be.

(7) One-third of the members referred to in sub-section (6) shall be women and one among the members specified in clause (c) of the said sub-section shall be-

(a) appointed by the State Government as the Chairperson of the Board;

(b) appointed by the State Advisory Board as the Chairperson of the committee or sub-committee, as the case may be.

(8) In tendering its advice in the matters specified in clause (b) or clause (c) of sub-section (4), the State Advisory Board shall have regard to the number of women employed in the concerned establishment, or employment, the nature of work, hours of work, suitability of women for employment, as the case may be, the need for providing increasing employment opportunities for women, including part time employment, and such other relevant factors as the Board may think fit.

(9) The State Government may, after considering the advice tendered to it by the State Advisory Board and after inviting and considering the representations from establishment or employees or any other person which that Government thinks fit, issue such direction as may be deemed necessary.

(10) The Central Advisory Board referred to in sub-section (1) and the State Advisory Board referred to in sub-section (4) shall respectively regulate their own procedure including that of the committees and sub-committees constituted by the State Advisory Board, in such manner as may be prescribed.

(11) The terms of office of the Central Advisory Board referred to in sub-section (1) and the State Advisory Board referred to in sub-section (4) including that of the committees and sub-committees constituted by the State Advisory Board, shall be such as may be prescribed.

Central Advisory Board: composition and role

The Central Advisory Board is designed as a representative body. Employer and employee representatives must be equal in number. Independent persons cannot exceed one-third of the total membership, and five representatives of State Governments are included. One-third of the members under sub-section (1) must be women, and the Chairperson is selected from the independent members.

The Board advises the Central Government on minimum wages and connected matters, measures for increasing employment opportunities for women, the extent of employment of women in establishments or employments notified by the Central Government, and other matters relating to the Code referred to it.

State Advisory Boards: functions and committees

Every State Government is required to constitute a State Advisory Board. Its advisory subjects broadly correspond to those of the Central Board at the State level. A State Advisory Board may also form committees or sub-committees to examine matters falling within sub-section (4).

The State Board and its committees or sub-committees must maintain equal representation between employers and employees, while independent persons cannot exceed one-third of the relevant body. One-third of the members referred to in sub-section (6) must be women.

Special considerations concerning employment of women

When advising on increasing employment opportunities for women or on the extent to which women may be employed in specified establishments or employments, the State Advisory Board must consider factors listed in sub-section (8), including the number of women employed, nature and hours of work, suitability for employment, the need to increase employment opportunities including part-time employment, and other relevant factors.

Procedure and terms of office

Sub-sections (10) and (11) provide for prescribed rules governing procedure and terms of office. The Code on Wages (Central) Rules contain provisions concerning the Central Advisory Board, including its constitution, additional functions, meetings and related procedural matters.

Official legal resources

For authoritative text and commencement status, refer to the Ministry of Labour and Employment's official copy of the Code on Wages, 2019, the 18 December 2020 commencement notification, and the 21 November 2025 commencement notification.

Updated: 16 September 2026. This page is intended for legal information and should be read with the latest Gazette notifications, rules and State-specific notifications where applicable.