Skip to main content
Regd. in 1964
Ministry of Labour

Act, Codes & Rules

India’s four Labour Codes went into full effect on November 21, 2025, consolidating and replacing 29 fragmented central labour laws. This overhaul impacts payroll structures, employee benefits, and workplace safety protocols, aiming to formalize the workforce and introduce universal minimum wages. The new legislative framework reorganizes the country’s employment regulations into four distinct categories

India’s four Labour Codes went into full effect on November 21, 2025, consolidating and replacing 29 fragmented central labour laws. This overhaul impacts payroll structures, employee benefits, and workplace safety protocols, aiming to formalize the workforce and introduce universal minimum wages.

The new legislative framework reorganizes the country’s employment regulations into four distinct categories:

Announcement PDF

1. The Code on Wages, 2019

  • Universal Minimum Wage: Introduces a statutory floor wage for both organized and unorganized sectors, ensuring no state can set minimum wages below this base line.
  • The “50% Rule”: Mandates that an employee’s basic pay and dearness allowance must constitute at least 50% of their total Cost to Company (CTC). This effectively limits excessive allowances and increases the base calculation for Provident Fund (PF) and gratuity.
  • Equal Remuneration: Strictly prohibits gender-based discrimination in wages and recruitment for the same or similar nature of work.
Download Act PDF Download Rules PDF
Announcement PDF

2. The Code on Social Security, 2020

  • Gig & Platform Workers: Mandates the creation of welfare schemes for gig workers and platform workers.
  • Reduced Gratuity Period: The standard five-year continuous service requirement for gratuity is reduced to just one year for specific categories like fixed-term employees and in cases of death, termination, or disablement.
  • Pan-India Coverage: Expands Employees’ State Insurance (ESI) access and unifies various social security funds.
Download Act PDF
Announcement PDF

3. The Industrial Relations Code, 2020

  • Fixed-Term Employment: Recognizes “Fixed-Term Employees” (FTE) as a distinct classification, granting them proportional benefits equivalent to permanent employees.
  • Union Representation & Disputes: Modifies the threshold for establishments requiring standing orders and streamlines the negotiation processes for trade unions.
  • Closure & Retrenchment: Rationalizes thresholds for layoffs, retrenchment, and closures across varying firm sizes.
Download Act PDF
Announcement PDF

4. The Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020

  • Standardized Work Conditions: Regulates core working conditions, including mandatory annual health check-ups for employees.
  • Women’s Employment: Allows women to work in all types of establishments, including night shifts, with the employer responsible for providing adequate safety and transportation arrangements.
Download Act PDF