Overview
- Draft rules covering the Code on Wages, Industrial Relations, Social Security, and Occupational Safety have been released, with comments invited for 45 days (30 days for Industrial Relations) as the Centre targets finalisation around March and a coordinated rollout near April 1, 2026.
- A uniform definition of wages counts basic pay, dearness allowance and retaining allowance, with any other allowances above 50% of total remuneration added back, a change expected to lift PF and gratuity bases.
- Gratuity applies prospectively from November 21, 2025, and fixed-term employees become eligible after one year of continuous service, with the ICAI indicating companies should recognise higher gratuity liabilities in December-quarter statements.
- Working time is capped at 48 hours per week with overtime at twice the normal rate, alongside digitised compliance, unified returns and an inspector‑cum‑facilitator approach to enforcement.
- The Social Security draft provides Aadhaar‑linked registration for unorganised workers aged 16+, proposes a National Social Security Board with gig and platform worker representation, and details a minimum/floor wage formula based on a standard working‑class family.