Four Labour Codes · In force
The Labour Codes are in force. Is your establishment ready?
With effect from 21 November 2025, India brought four Labour Codes into force, consolidating 29 central labour laws. We assess the impact on your pay structure and costs, and update your policies, documents and filings.
- In force from
- 21 November 2025
- Consolidates
- 29 central labour laws
- State rules
- Being notified by each state, including Telangana
Overview
The Codes change more than the names of the laws. A single definition of wages now drives PF, gratuity and bonus. Appointment letters are mandatory. Fixed-term employees earn gratuity after a year. Contract labour and safety rules have been rewritten.
Labour is a concurrent subject, so states notify their own rules. We follow the central and Telangana notifications and apply them to your establishment as they take effect.
What changes for employers
Six changes every employer should know.
Uniform definition of wages
Where allowances exceed half of total remuneration, the excess is added back to wages for PF, gratuity and other benefits.
Appointment letters
Every worker must receive a written appointment letter.
Fixed-term employment
Fixed-term employees get the same benefits as permanent staff, with gratuity after one year of service.
Timely settlement
Wages due on exit must be paid within two working days of resignation, removal or dismissal.
Gig and platform workers
Aggregators contribute to social security schemes for gig and platform workers.
Health and safety
Annual health check-ups for eligible workers and a common framework for working conditions.
Scope of work
What we handle for you.
Impact assessment
- Review of salary structures against the new wage definition
- Effect on PF, gratuity and bonus costs
- Review of contract and fixed-term workforce
- Summary for management with options
Salary restructuring
- Revised CTC structures
- Cost modelling for each option
- Employee communication support
- Payroll changes implemented in the same month
Policies and documents
- Appointment letter formats
- Standing orders and HR policies
- Registers and records under the Codes
- Contractor agreements and compliance clauses
Registrations and filings
- Migration of registrations to the new framework
- Revised returns as they are notified
- Tracking of Telangana rules
- Training for your HR and finance teams
Reference
The four Codes at a glance
| Code | Brings together | Covers |
|---|---|---|
| Code on Wages, 2019 | Payment of Wages, Minimum Wages, Payment of Bonus and Equal Remuneration Acts | Wages, minimum wages, bonus and equal pay |
| Code on Social Security, 2020 | EPF, ESI, Payment of Gratuity, Maternity Benefit and other Acts | PF, ESI, gratuity, maternity, gig workers |
| Industrial Relations Code, 2020 | Trade Unions, Standing Orders and Industrial Disputes Acts | Employment terms, unions and disputes |
| OSH Code, 2020 | Factories, Contract Labour and other Acts | Safety, health, working conditions, contract labour |
How we work
From first meeting to monthly routine.
- AssessWe review your pay structure, workforce mix and current compliance against the Codes.
- DecideWe present the cost impact and options to management.
- RestructureWe implement salary changes in payroll and update statutory calculations.
- DocumentWe issue updated letters, policies and registers.
- MonitorWe track new state rules and apply them as they take effect.
Questions
Frequently asked.
Do we have to change our salary structure?
Not necessarily. The change matters if allowances exceed half of total remuneration. We model the effect so you can decide with the numbers in front of you.
Are the state rules final?
States notify their own rules under each Code, and some are still evolving. We follow the Telangana notifications and update your compliance as they apply.
Will our PF and ESI filings change?
The schemes continue under the Social Security Code. Where wages for contribution change because of the new definition, we update your filings from the effective month.
Related services
Next step
Let us take Labour Codes compliance off your desk.
Share your headcount and current setup. We will review where you stand and propose a clear monthly arrangement.