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The Labour Codes
India’s Labour Law — Tracked and Made Actionable
Four Codes Analysis PIB Archive Updates What Changed Calculator Newsletter Contact
Briefing
Central minimum wages revised effective 1 April 2026 — all scheduled employments affected  ·  Final Central Rules notification expected this month  ·  Gujarat and Arunachal Pradesh: first states with final rules across all four codes  ·  Fixed-term employees now eligible for gratuity after one year of service  ·  Mandatory F&F settlement within 48 hours of any exit  ·  Appointment letters now compulsory for every employee in every establishment  ·  Aggregators face 1–2% turnover contribution for gig worker social security  ·  Women permitted in all night shifts with prior written consent under OSH Code
Intelligence Brief

Four Codes. Twenty-nine laws repealed.
India’s labour law framework has fundamentally changed.

The Government of India brought all four Labour Codes into force on 21 November 2025. Final rules are expected by April 2026. This is the most significant overhaul of Indian labour law in seven decades — affecting employers, employees, and every working professional in the country.

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 Code — effective 21 November 2025. In one legislative move, 29 central labour laws were repealed and replaced by a unified, modernised framework.

Central draft rules were published on 30 December 2025. Stakeholder consultations have closed. Final rules are targeted for notification by April 2026, at which point full enforcement begins. States must also notify their own rules; several have already done so, with others expected to follow in the weeks after central notification.

For employers, the obligations are material: wage structures require restructuring, employment contracts need updating, and payroll systems need reconfiguration. For employees and workers, the changes bring new protections — a guaranteed minimum wage floor, gratuity from year one for fixed-term staff, mandatory appointment letters, and formal social security coverage for gig and platform workers for the first time.

Enforcement Timeline
Final Central Rules: April 2026
Draft rules published 30 December 2025. Public consultation closed February 2026. Central rules expected to be finalised and notified by April 2026, at which point full enforcement commences. Existing regulations continue to apply in the interim.
From The Labour Codes

Latest Updates

All updates ↓
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 →
29→4
Central labour laws consolidated into four unified codes
50%
Minimum basic pay as a share of total CTC — the 50% Wage Rule
1yr
Gratuity eligibility for fixed-term employees, reduced from 5 years
48hrs
Mandatory window for Full & Final settlement after any exit
State Rules Tracker · Live
2All Final
8Partial
16Draft
10Not Published
View Full Tracker →
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.
TopicBefore — Old LawsAfter — Labour CodesCodeImpact 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
New Tool
Gratuity Calculator — updated for the new Codes.

The Code on Social Security 2020 changed how gratuity is computed. Fixed-term employees are now eligible after just 1 year. The new wage definition applies retrospectively from 21 November 2025. Enter your CTC, basic pay and service period — see exactly what changed.

What changed
Wage base: now MIN 50% of CTC
Fixed-term employees
Eligible after 1 year, not 5
Retrospective
Applies from 21 November 2025
Open Calculator →
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Practical. Independent.
Built for Implementation.

The Labour Codes is an independent platform tracking India’s new labour law framework — the four Labour Codes that consolidated 29 central laws and fundamentally changed the rights and obligations of every employer and employee in India, effective November 2025.

Content is developed by a team with direct, on-the-ground experience of Labour Code implementation. The team works across compliance, HR, finance, and employee advisory — from wage restructuring and contract review to helping workers understand their new entitlements under the Codes.

The goal is straightforward: ensure that employers, employees, HR professionals, and anyone affected by Indian labour law are never the last to know when something changes — and that when they do find out, they receive a practical takeaway. What changed. Why it matters. What to do next. Every time.

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