Who is an Inter-State Migrant Worker under the OSH Code?

Who is an Inter-State Migrant Worker under the OSH Code?

Compliance & labour law Updated October 2026

An inter-state migrant worker is someone recruited, or who came on his own, to work in a State other than his own, earning up to Rs 18,000 a month. The OSH Code replaced the 1979 Act, applies from ten such workers, and keeps an annual journey allowance but drops the one-time displacement allowance.

An inter-state migrant worker, in the OSH Code, is a worker recruited in one State, directly or through a contractor, for an establishment in another, or one who came on his own and got a job in another State. The Code covers only those earning up to Rs 18,000 a month, or a higher figure the Centre notifies.

What the Code gives and demands

The Inter-State Migrant Workmen Act, 1979 now lives in Part II of the Code, which applies to an establishment employing ten or more such workers on any day of the preceding 12 months (the 1979 Act started at five). The employer or contractor must:

  • provide suitable conditions of work, bearing in mind the worker is far from home;
  • report a fatal accident or serious injury to the authorities of both States and to the next of kin;
  • extend every benefit available to other workers, including ESI and provident fund cover and the health check-up.

The employer also pays a lump-sum fare once a year for the to-and-fro journey to the native place. The Central Rules, as law firms summarise them, tie this to 180 days of work in the preceding 12 months, set the fare at no less than second-class sleeper, and let a new employer pay it on the worker’s own certificate if the earlier one did not. The Code also asks governments to run schemes for ration portability, building-worker cess portability and a toll-free helpline.

Not everything travelled over. The Code text has no counterpart to the one-time displacement allowance of the 1979 Act (50 per cent of monthly wages or Rs 75, whichever was higher). Registration also changes, because the 1979 Act’s separate regime is folded into the general one: establishment registration under section 3 and applications for a contract labour licence must state how many migrant workers are employed, and the Central Rules are reported to require migrant statistics on a designated portal.

What goes wrong in practice

Look for a journey allowance line in your payroll. A worker hired in Bihar and earning Rs 16,000 at a Pune plant passes the wage test, so the annual fare is a statutory item, not a goodwill perk. Also, a migrant is “contract labour” under the Code, so these workers count toward the 50-worker mark that triggers the principal employer’s wage liability. Someone earning Rs 20,000 is outside the definition today, though the ceiling can be revised by notification.

Frequently asked questions

Does the Rs 18,000 limit include allowances?

The test is wages drawn, not CTC. The OSH Code defines wages itself (basic pay, dearness allowance and retaining allowance, plus any excess of exclusions over one-half of total remuneration) in line with the Code on Wages, so compute it that way.

Are migrants paid minimum wage in the destination State?

Yes, the wage rules of the State where they work apply, and the Code requires the same benefits as local workers. Check the minimum wages notified there.

Is a worker who changes jobs within the destination State still covered?

Yes, the definition expressly includes a person who has subsequently changed establishment within that State.

Portal and rule details differ by state, so follow the labour codes state tracker for where yours stands.

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