Code on Wages, 2019
Uniform definition of wages, minimum wages for all employees, timely payment, bonus and equal pay.
Replaces: Payment of Wages, Minimum Wages, Payment of Bonus and Equal Remuneration Acts
Labour Codes · In force from 21 November 2025
The new Labour Codes: what changes for your business
Four Codes have replaced 29 central labour laws. Central Rules were notified in May 2026, and State Rules are being notified state by state. Here's what employers need to review — and how we help.
The four Codes
What each Code covers
Industrial Relations Code, 2020
Standing orders, grievance redressal, trade unions, lay-off, retrenchment, closure and fixed-term employment.
Replaces: Trade Unions, Industrial Employment (Standing Orders) and Industrial Disputes Acts
Code on Social Security, 2020
PF, ESIC, gratuity, maternity benefit, employees' compensation and social security for gig and platform workers.
Replaces: EPF, ESI, Payment of Gratuity, Maternity Benefit and Employees' Compensation Acts, among others
Occupational Safety, Health and Working Conditions Code, 2020
Registration, safety, health, working hours, contract labour, migrant workers and conditions in factories and establishments.
Replaces: Factories, Contract Labour, Inter-State Migrant Workmen and other Acts
Key changes
What employers should review first
Uniform 'wages' definition
Basic pay, DA and retaining allowance must form at least 50% of total remuneration; excluded allowances above 50% are added back to wages. This affects PF, gratuity and bonus.
Appointment letters
Appointment letters are mandatory for employees.
Gratuity for fixed-term employees
Fixed-term employees become eligible for gratuity after one year of continuous service.
Minimum wages for all
Minimum wage protection extends to all employees, organised and unorganised.
Social security for gig & platform workers
Gig, platform and inter-state migrant workers are brought within the social security framework.
Health check-ups & women at night
Free annual health check-ups for eligible workers, and women may work in all sectors including night shifts, subject to safeguards.
Not changed by the Codes: Professional Tax, Labour Welfare Fund and Shops & Establishments registration continue under State laws. See PT, LWF and Shops & Establishment.
Timeline
Latest updates
- Labour CodesStatusLabour Codes: 10 states have published final rules; all states expected by 31 October 2026The Union Labour Secretary said ten states have published their rules under the four Labour Codes, the rest have released drafts, and the government expects all states and UTs to notify rules by 31 October 2026.Read update
- Labour CodesRulesCentral Rules notified under all four Labour CodesFinal Central Rules under the Code on Wages, Industrial Relations Code, Code on Social Security and OSH Code were notified on 8–9 May 2026 and took effect on 12 May 2026.Read update
- Labour CodesCodeFour Labour Codes come into forceThe Code on Wages, Industrial Relations Code, Code on Social Security and OSH Code came into force on 21 November 2025, replacing 29 central labour laws.Read update
FAQs
Labour Codes questions
Are the new Labour Codes in force?
Yes. The four Labour Codes came into force on 21 November 2025, and Central Rules under all four Codes were notified in May 2026. Each state also notifies its own Rules — as of late September 2026, ten states had published final rules and the Centre expects all states and UTs to do so by 31 October 2026. Detailed requirements for your establishment depend on where you operate.
How does the new 'wages' definition affect salary structures?
Under the Codes, basic pay, DA and retaining allowance must make up at least 50% of total remuneration. If excluded allowances exceed 50%, the excess is treated as wages, which can increase PF, gratuity and bonus outgo. We review salary structures and show the cost impact before you change anything.
Has the EPF wage ceiling changed?
Yes. The EPF wage ceiling was raised from ₹15,000 to ₹25,000 per month with effect from 17 September 2026, for PF, EPS and EDLI. Employers should review employee coverage, payroll configuration and ECR filing from that date.
What is the PF (ECR) due date for September 2026?
EPFO has extended the due date for filing the ECR and paying PF contributions for the September 2026 wage month to 31 October 2026, because the wage ceiling changed on 17 September. The extension is only for September 2026; October 2026 contributions remain due by 15 November 2026.
Is ESIC mandatory?
ESIC coverage is mandatory for establishments that fall within the coverage criteria, which depend on the type of establishment, number of employees, whether the area is notified for ESIC, and employee wages. The ESIC wage ceiling currently remains ₹21,000 per month (₹25,000 for employees with disability). We assess applicability for your establishment before registration.
Summary as of October 2026 for general information only, not legal advice. Detailed obligations depend on the Code, the Central or State Rules applicable to your establishment, and later notifications. Always verify on the official Gazette or Ministry of Labour & Employment website.
Is your organisation Labour Codes ready?
We review your salary structures, policies, registers and PF/ESIC set-up and give you a clear action plan.