Intelligence Brief

Four Codes. Twenty-nine laws repealed.
Every employer in India now has obligations to meet.

The Government of India brought all four Labour Codes into force on 21 November 2025. The Central Rules have now been notified. This is the most significant overhaul of Indian labour law in seven decades — and full enforcement is active.

In a landmark step for Indian employment regulation, the Government of India notified all four Labour Codes — the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the OSH & Working Conditions Code — effective 21 November 2025. In one legislative move, 29 central labour laws were repealed and replaced by a unified, modernised framework. The final Central Rules, completing the legislative machinery, have now been published.

For CFOs, CHROs, HRBPs, Comp & Rewards specialists, and compliance officers, the obligations are material and enforceable now. The 50% wage rule requires payroll restructuring across every CTC structure. Fixed-term employees are eligible for gratuity after one year of service. Full & Final settlement is mandatory within 48 hours of any exit. Appointment letters are compulsory for every employee in every establishment. Gig and platform workers have formal social security coverage for the first time. The Industrial Relations (Central) Rules, 2026 are decoded in full on this platform — Wages, SS and OSH Code rule breakdowns follow.

States are simultaneously notifying complementary rules. Track all 36 states and UTs on the State Rules Tracker.

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Where We Are — May 2026

Rules Published · Enforcement Active

Central Rules are out for all four Codes. IR Code Rules decoded in full here. Wages, SS and OSH Code breakdowns in preparation. States are notifying complementary rules — see the State Rules Tracker for live status.

From The Labour Codes

Latest Updates

All updates ↓

May 2026 Central

Wages Ind. Relations Soc. Security OSH Code

The Rules Are Out. Here Is What Changed for Employers Across All Four Codes.

Consolidated breakdown of Central Rules published under all four Labour Codes — what they require, what compliance teams must act on, and what deadlines are now live.

Read →

May 2026 Ind. Relations

Ind. Relations Central

Industrial Relations (Central) Rules, 2026 — The Deep Dive

Provision-by-provision breakdown of the IR Code Rules — fixed-term employment forms, retrenchment notice requirements, standing order certification, trade union registration, and conciliation timelines. Annotated for HR, Legal and HRBP teams.

Read →

1 Apr 2026 Wages

Wages Central

Central Minimum Wages Revised — Effective 1 April 2026

The Central Government has revised minimum wages across all scheduled employments effective 1 April 2026. Decoded — what changed, which categories are affected, and what employers must update immediately.

Read →

Ongoing Central

Wages Ind. Relations Soc. Security OSH Code

PIB Archive — Every Official Labour Codes Statement, Decoded

The complete archive of Press Information Bureau releases on the four Labour Codes — Ministry statements, official clarifications, and implementation updates. Sourced directly from PIB and decoded for practical use.

Browse →

Feb 2026 Central

WagesInd. RelationsSoc. SecurityOSH Code

Official Employer Compliance Handbook — All Four Labour Codes

The Ministry’s official handbook for employers — foundational, monthly, annual and event-based obligations across all four Codes. Interactive format, compliance thresholds and key deadlines in one place.

Read →

13 Mar 2026 OSH Code

OSH Code Central

Ministry Answers 8 Key Questions on the OSH & Working Conditions Code

Official MoLE FAQ decoded — dock workers, health examinations in hazardous processes, contract labour welfare, the Inspector-cum-Facilitator reform, penalty rationalisation, and the new experience certificate obligation for contractors.

Read →

16 Mar 2026 Central

Wages Soc. Security OSH Code

Ministry Answers 27 Questions on Wages, Gratuity, Leave and Working Conditions

Official MoLE FAQs decoded — overtime in the 50% rule, gratuity applicability from November 2025, ESI coverage, leave carry-forward caps, and the crèche obligation. The most substantive official guidance since the December 2025 draft rules.

Read →

Mar 2026 Central

Wages Ind. Relations Soc. Security OSH Code

State Rules Tracker — Where Every State Stands Across All Four Codes

Live tracker showing draft and final rule status for all 36 states and union territories. Gujarat and Arunachal Pradesh have final rules under all four codes. Filter by status, click any state for the full breakdown.

View Tracker →

21 November 2025

All Four Labour Codes Come Into Force

In a single legislative step, 29 central labour laws were repealed and replaced by four unified codes. The most significant overhaul of Indian labour law in seven decades.

Completed

30 December 2025

Draft Central Rules Gazetted

Draft rules for all four codes published. 45-day consultation for Wages, SS, OSH; 30 days for IR Code.

Completed

February 2026

Stakeholder Consultation Closes

Public consultation ended. Rules under final review by the Ministry of Labour and Employment.

Completed

April — May 2026

Preparation Window Closed

The preparation window for wage restructuring, contract review, and payroll reconfiguration has closed. Obligations are now active.

Completed

May 2026

Central Rules Published — Enforcement Begins

Rules gazetted for all four Codes. IR Code Rules decoded. Wages, SS and OSH Code rule breakdowns in preparation. The compliance framework is now complete.

You Are Here

Q2–Q3 2026

State-Level Rule Notifications

States notifying complementary rules simultaneously. Obligations vary by state until full alignment. Track live on the State Rules Tracker.

Ongoing

Verified updates · May 2026

CentralMay 2026

Central Rules Gazetted — The Legislative Machinery Is Complete

The Central Government has published rules under all four Labour Codes. IR Code Rules are decoded in full on this platform. Wages, SS and OSH Code rule breakdowns follow shortly.

Ind. RelationsMay 2026

Industrial Relations (Central) Rules, 2026 Published

IR Code Rules cover fixed-term employment forms, retrenchment notice requirements (300-worker threshold), standing order certification, trade union registration procedures, and conciliation timelines.

WagesApr 2026

Central Minimum Wages Revised — Effective 1 April 2026

VDA revised upward across all seven scheduled employments based on CPI-IW rising from 413.52 to 424.80. All payroll systems must reflect new rates from 1 April 2026.

Central16 Mar 2026

Ministry FAQs — 27 Questions on Wages, Gratuity & Working Conditions

Official MoLE FAQs decoded: gratuity applicability from 21 Nov 2025, 50% rule operationalisation, ESI thresholds, leave carry-forward caps, and crèche obligations.

Soc. Security19 Dec 2025

Corrigendum: EPF Act Pension Provisions Clarified

Ministry issued corrigendum to the SS Code notification. EPF Act pension provisions separately repealed. PF contributions regime clarified.

The Legislative Framework

Four Codes. One New Compliance Landscape.

In force from 21 November 2025.
Final rules targeted for April 2026.

Code I

Code on Wages

2019 · In Force

Consolidates four wage statutes. Introduces a uniform wage definition, national floor wage, and equal remuneration mandate. The 50% rule requires basic pay to be at least half of total CTC — the largest single driver of payroll restructuring.

✓ In Force

Replaces

Payment of Wages Act · Minimum Wages Act · Payment of Bonus Act · Equal Remuneration Act

Read full scope →

Code II

Industrial Relations Code

2020 · All Provisions In Force

All provisions effective from 21 November 2025. Raises the retrenchment prior-approval threshold from 100 to 300 workers. Introduces fixed-term employment as a statutory concept with mandatory parity obligations.

✓ All Provisions In Force

Replaces

Industrial Disputes Act · Trade Unions Act · Industrial Employment (Standing Orders) Act

Read full scope →

Code III

Code on Social Security

2020 · In Force

Extends PF, ESI, gratuity and maternity benefits to gig and platform workers for the first time. Fixed-term employee gratuity accrues after one year. Aggregators must contribute 1–2% of annual turnover to social security funds.

✓ In Force

Replaces

EPF Act · ESI Act · Maternity Benefit Act · Payment of Gratuity Act · Employees’ Compensation Act + 4 others

Read full scope →

Code IV

OSH & Working Conditions Code

2020 · All Provisions In Force

Consolidates 13 laws. Mandates appointment letters for every employee in every establishment. Annual health checks for workers over 40. Women permitted in all shifts with prior written consent. Crèche at 50+ workers.

✓ All Provisions In Force

Replaces

Factories Act · Contract Labour Act · Inter-State Migrant Workmen Act · Mines Act · Plantations Labour Act + 8 others

Read full scope →

Practitioner Analysis

Compliance Intelligence

Curated & Updated

Click any card to read the full analysis

WagesMarch 2026

The 50% Wage Rule: What Every Payroll and Comp Team Must Restructure Before April

Basic pay must constitute at least 50% of total CTC. For organisations with heavily allowance-loaded salary structures, this means a structural redesign — with PF and gratuity costs typically rising depending on the current wage structure.

Read Full Analysis →

Soc. SecurityMarch 2026

Fixed-Term Gratuity After One Year: The Provisioning Change Finance Cannot Afford to Miss

Gratuity is now payable to fixed-term employees after one year of service. Organisations with significant FTE populations face an immediate balance-sheet provisioning obligation that previously fell entirely outside the five-year window.

Read Full Analysis →

CentralFeb 2026

April 2026: A 10-Point Compliance Readiness Checklist for HR and Finance

With final rules expected by April 2026, the preparation window is narrow. From appointment letters to payroll restructuring, these are the ten obligations with the highest immediate exposure — mapped by function.

Read Full Analysis →

Ind. RelationsFeb 2026

Fixed-Term Employment Is Now Statutory: Remodelling Your Workforce Economics

The IR Code makes fixed-term employment a statutory concept with mandatory parity in wages, hours, and benefits. The economic rationale for preferring FTE over permanent employment has been substantially weakened.

Read Full Analysis →

OSH CodeJan 2026

Mandatory Appointment Letters: A Universal Obligation Across Every Establishment

The OSH Code mandates appointment letters for every employee in every establishment, in a prescribed format. Employers who have not issued written letters — particularly in manufacturing and construction — face immediate compliance exposure.

Read Full Analysis →

Soc. SecurityJan 2026

Gig Workers and the Social Security Code: What Aggregators Must Prepare For

Gig and platform workers are formally recognised under law for the first time. Aggregators face a 1–2% of annual turnover contribution to social security funds. Compliance infrastructure must be built before rules are notified.

Read Full Analysis →

The Practical Shift

What Has Changed For Employers

High-impact changes with direct compliance obligations. Updated as final rules are notified.

Topic	Before — Old Laws	After — Labour Codes	Code	Impact Area
Wage Definition & 50% Rule	Fragmented definitions across multiple acts; employers suppressed basic pay to reduce PF and gratuity liability	Uniform wage definition. Basic + DA must be ≥50% of total CTC. Excess allowances count as wages for statutory purposes.	Wages	Payroll · Comp & Rewards · CFO
Fixed-Term Employee Gratuity	5 years of continuous service required for gratuity eligibility	Fixed-term employees eligible for pro-rata gratuity after 1 year of service	Soc. Security	Finance · HRBP · Payroll
Full & Final Settlement	Typically processed in the following month’s payroll cycle	Mandatory settlement within 48 hours of exit, dismissal, or retrenchment	Wages	Payroll · HRIS Teams
Retrenchment / Closure Threshold	100 workers (in most cases): prior government approval required	Threshold raised to 300 workers. Below 300, no prior government permission required for retrenchment or closure.	Ind. Relations	HRBP · Legal · Management
Gig & Platform Workers	No legal recognition; excluded from most social security entitlements	Formally recognised. Aggregators must contribute 1–2% of annual turnover to designated social security funds.	Soc. Security	CFO · Legal · Platform Cos
Appointment Letters	Required only in specific scheduled or regulated employment sectors	Mandatory for every employee in every establishment, in the prescribed format under the OSH Code	OSH Code	All HR Functions
Women — Night Shifts	Restricted in most industries under the Factories Act	Permitted in all establishments with prior written consent, safe transport, and adequate facilities	OSH Code	Manufacturing · BPO · Hospitality
Fixed-Term Employment	No statutory concept; purely contractual; no parity obligations	Statutory concept. FTEs must receive the same wages, hours, and statutory benefits as permanent employees doing equivalent work.	Ind. Relations	HRBP · Legal · Operations

Before

Fragmented definitions; employers suppressed basic pay to reduce PF and gratuity liability.

Now

Uniform definition. Basic + DA must be ≥50% of CTC. Excess allowances count as wages.

Before

5 years of continuous service required.

Now

FTEs eligible for pro-rata gratuity after 1 year of service.

Before

Processed in the next monthly payroll cycle.

Now

Mandatory within 48 hours of exit, dismissal, or retrenchment.

Before

100 workers: prior government approval required.

Now

Threshold raised to 300 workers. Below 300, no prior permission needed.

Before

No legal recognition; excluded from social security.

Now

Formally recognised. Aggregators must contribute 1–2% of annual turnover.

Before

Required only in specific regulated sectors.

Now

Mandatory for every employee in every establishment. No exceptions.

Before

Restricted in most industries under the Factories Act.

Now

Permitted everywhere with prior written consent and prescribed safety measures.

Before

No statutory concept; purely contractual; no parity obligations.

Now

Statutory concept. FTEs must receive same wages, hours, and benefits as permanent staff.

By Role

What This Means For You

The Labour Codes affect everyone differently. Select your role.

CHRO / HR Leadership

People Policy & Employment Contracts

Issue appointment letters to all employees — mandatory under the OSH Code across every establishment
Review all fixed-term contracts for parity: wages, hours, and benefits must match permanent employees in equivalent roles
Update model standing orders to reflect the new 300-worker retrenchment threshold
Build a process for 48-hour F&F settlement — requires payroll system integration, not just a policy update
Classify gig and platform workers; assess whether aggregator social security contribution obligations apply
Document women’s night-shift consent processes and verify transport and facility obligations are in place

CFO / Finance Leadership

Cost Modelling & Statutory Provisions

Model the impact of the 50% wage rule across all pay bands — PF and gratuity costs will typically increase for allowance-heavy structures, with the extent depending on current wage structuring
Provision for gratuity for all fixed-term employees from year one, not year five
Assess aggregator social security contribution liability (1–2% of annual turnover)
Review bonus computation under the revised, uniform wage definition
Factor in mandatory annual health checks for workers over 40 and crèche facilities at 50+ headcount establishments
Ensure payroll infrastructure can execute F&F settlement within 48 hours of any employee exit

Comp & Rewards

Pay Structure & Compliance

Audit every CTC structure — flag any where allowances exceed 50% of total remuneration
Remodel salary bands to comply with the 50% rule without triggering disproportionate cost increases
Ensure equal pay for fixed-term and permanent employees performing equivalent work — now a statutory obligation
Review HRA, conveyance, and special allowance structuring in light of the new uniform wage definition
Update bonus and long-term incentive computations to align with the revised wage base
Build a state-wise minimum wage tracker — the Code on Wages sets a national floor, with states setting rates above it

Workers & Employees

Your Rights Under the New Labour Codes

You are now entitled to a written appointment letter from day one — regardless of your industry, role, or establishment size
Your basic pay must be at least 50% of your total CTC — if it is not, your employer is required to restructure your salary
If you are on a fixed-term contract, you must receive the same wages, hours, and benefits as permanent employees doing equivalent work
Gratuity is now payable to fixed-term employees after just one year of service, not five
Full and final settlement must be completed within 48 hours of your last working day — your employer cannot delay this
If you are a gig or platform worker, you are now formally recognised under law and entitled to social security benefits for the first time
Women can work night shifts in all establishments with prior written consent — your employer must provide safe transport and adequate facilities
A national floor wage now applies across India — no state minimum wage can fall below this floor

Four Codes. Twenty-nine laws repealed.Every employer in India now has obligations to meet.

Latest Updates

Compliance Intelligence

Every Friday.Everything that movedin Indian Labour Law that week.

Practical. Independent.Built for Implementation.

Four Codes. Twenty-nine laws repealed.
Every employer in India now has obligations to meet.

Every Friday.
Everything that moved
in Indian Labour Law that week.

Practical. Independent.
Built for Implementation.