Draft rules under India's four Labour Codes clarify wages and gratuity calculations, extend social security, but smaller firms still face implementation concerns
Revised draft rules for the four Labour Codes clarify key provisions such as gratuity on 'wages' and gig worker registration, with stakeholder inputs invited for up to 45 days
Companies must recognise higher gratuity and leave liabilities under new labour codes as expenses in interim financial results for the period ending December 31, 2025
After a long wait of five years, the government has set in motion the four labour codes, which will be fully operationalised in 2026 with publication of rules ensuring minimum wage and universal social security for all workers in the country. The labour ministry has also planned to bring in EPFO 3.0 version in 2026, which will ensure speedy withdrawal of employees' provident fund as well as fixation of pension under the Employees' Pension Scheme 1995 and insurance claims under Employees' Deposit Linked Insurance Scheme 1976. Talking to PTI, Union Labour & Employment Minister Mansukh Mandaviya said 2025 has been truly transformative for India's labour and employment ecosystem, marked by reforms that place workers at the centre of governance. A defining landmark of the year was the coming into effect of the four Labour Codes from November 21, 2025, modernising and consolidating 29 labour laws into a simplified, contemporary framework, he noted. "Looking ahead to 2026, the focus will
A joint platform of central trade unions have decided to hold a nationwide strike in February against the government's move to change legislations related to workers, the nuclear energy sector, and rural jobs. The trade unions are opposing the four new labour codes notified by the government in November and the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, passed by the Parliament during the Winter Session, which was concluded on December 19. Also, the unions are against the passage of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), 2005 and seeks to provide rural workers with an employment guarantee of 125 days per financial year. Members of the farmers' body Samyukta Kisan Morcha (SKM) and NCCOEEE (National Coordination Committee of Electricity Employees and Engineers) have extended their support to the .
Gurnani said that both the Centre and state governments will help the labour inspectors understand their new role of inspector-cum-facilitator and provide them with training
The four labour codes enforced in November are suitable for the present nature of employment as well as the kind of economic growth happening in the country, a senior official said on Friday. Addressing the National Logistics Summit 3.0 organised by PHDCCI, Union Labour Secretary Vandana Gurnani termed the new labour codes as a game-changer for a dynamic economy. The complexities and the outdated laws have been done away with, and rules are now being streamlined into four codes enacted in 2019-20 and activated from November 21, 2025, she pointed out. She said, "These codes are now fit for purpose in terms of what the current nature of employment is, and the significant economic growth India is witnessing." Gurnani mentioned about easing of various compliance norms, including the reduction in the number of registrations from 8 to one, 31 returns to one, and 87 registers to eight. She emphasised that the new codes will ensure minimum wages, mandatory appointment letters, and enhance
Labour Minister Mansukh Mandaviya on Thursday dismissed concerns that the recently enforced labour codes would encourage hire & fire and inspector raj, and said the new laws will formalise employment while inspectors will be facilitators. Under the new codes, government permission is not required for layoff, retrenchment and closure of units with workers' strength of up to 300. Earlier, units with up to 100 workers did not require such permission. Addressing the Times Network India Economic Conclave, Mandaviya said, "We have formalised employment in the country with increasing the number of workers to 300 per unit, which was earlier 100." Earlier employers used to provide formal employment to 100 workers to avoid legal hassles and the rest were employed informally, he said. He said new codes have formalised employment of the left-out workers and they will get all benefits that an enrolled employee gets. On concerns about encouraging inspector raj by increasing compliance burden, .
The Centre has proposed renaming MGNREGA as VB-RaM G, raising guaranteed workdays to 125 and shifting the funding pattern to 60:40, drawing criticism over diluted worker protections
Cabinet clears Bill to rename MGNREGS as 'Poojya Bapu Grameen Rozgar Yojana' and raise guaranteed employment from 100 to 125 days
Delhi HC flagged concerns that the Centre may have enforced the Industrial Relations Code, 2020 without formally repealing older labour laws, and has sought clarity on how the transition was notified
It's a relief that the four new labour laws that New Delhi has brought in, after delaying them for five years for fear of political backlash, haven't gone that far
The Centre has notified implementation of four labour codes, including new provisions for gig workers. But definitions, enforcement capacity and state rules may decide how far benefits reach
Labour Minister Mansukh Mandaviya said draft rules under four new labour codes will be pre-published soon, with full implementation and social security coverage expected by April 2026
The 72-hour work week has been a topic of debate. Some industry leaders support the idea, while many young professionals strongly oppose it. Do new labour codes support it?
Earlier, safety regulations in this sector relied mainly on the Factories Act, 1948, which provided a limited, factory-centric approach to hazardous industries
According to a NITI Aayog report, nearly 10 million gig workers were employed in the country in 2024-25, with the number projected to grow to 23.5 million by 2029-30
The Centre reportedly is planning to ask EPFO to design new provident fund and pension schemes for self-employed and gig workers under the Social Security Code, offering flexible contributions
Today's Best of BS Opinion looks at India's real GDP growth contrasts with weak nominal growth, persistent air pollution, confusion over AI , and uncertain labour-code implementation and more
The new codes, consolidating 29 laws, promise enhanced social security for gig workers and women, amid data showing rising wages but high wealth inequality