India’s 4 New Labour Codes

The four codes are the Code on Wages 2019, Code on Social Security 2020, Industrial Relations Code 2020, and Occupational Safety, Health and Working Conditions Code 2020. Together they consolidate 29 central labour laws into a unified framework.

The codes were notified to come into effect in 2025. State rules are being progressively notified, so the full rollout is phased. Some provisions may apply earlier in states that have notified their rules first.

The Code on Wages 2019 introduces a uniform wage definition where allowances cannot exceed 50% of total remuneration. This typically increases the basic wage component, which raises PF and gratuity contributions for many employers. CTC structures must be redesigned to comply.

Yes. The Code on Social Security 2020 extends coverage to gig and platform workers. Aggregators must contribute a percentage of their turnover to a Social Security Fund that finances benefits for gig workers.

Fixed-term employees now receive the same wages, allowances, statutory benefits, and working conditions as permanent employees. Gratuity is payable after just 1 year of service for fixed-term employees, instead of the usual 5 years.

The OSH Code 2020 introduces a single registration and licence regime that replaces multiple registrations under earlier acts. Employers can register once and obtain a unified licence for working conditions, contract labour, and migrant workers.

Yes. The IR Code 2020 raised the threshold for mandatory Standing Orders to 300 employees, easing compliance for smaller establishments. Government permission for layoffs and retrenchment also applies to larger units only.

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