The Ministry of Finance (MoF), on May 8, 2026, issued an Office Memorandum directing all Central Government Ministries, Departments, autonomous bodies and CPSEs to ensure timely payment of wages and statutory dues to manpower engaged directly or through contractors in accordance with the Code on Wages, 2019 and other Labour Codes. The instructions, issued following communication from the Ministry of Labour and Employment, mandate that contractors must disburse wages electronically within prescribed timelines and that Drawing and Disbursing Officers (DDOs) verify wage payments every month. The memorandum also reiterates the responsibility of principal employers under section 55(3) of the Occupational Safety, Health and Working Conditions Code, 2020 to ensure timely wage payment by contractors.
Further, the Office Memorandum prescribes that all manpower hiring contracts and RFPs must contain penalty provisions for delayed payment of wages and directs principal employers to earmark sufficient funds for outsourced manpower contracts. Contractors are required to submit reimbursement bills by the 10th of every month after wage payment, while DDOs must clear such bills by the 15th of the same month. In cases of inordinate delay, principal employers may directly pay contract workers and initiate blacklisting action against defaulting contractors in accordance with Rule 151 of the General Financial Rules, 2017. Secretaries of all Ministries and Departments have also been instructed to review compliance regarding timely wage payments during Senior Officers’ Meetings (SOMs).
[Notification No. F.2/6/2026-PPD]
