Overview
- The Centre enforced the four Labour Codes on November 21, replacing 29 central laws and introducing a unified, largely digital compliance framework.
- A uniform definition of ‘wages’ that caps allowances at 50% is now in force, increasing PF and gratuity contributions and likely trimming take-home pay for many employees.
- Minimum wages now apply to all workers under a national floor, and employers must issue appointment letters to formalise employment across sectors.
- Gig and platform workers have statutory recognition, with aggregators contributing 1–2% of turnover (capped at 5% of worker payouts) to a dedicated social security fund.
- Employers gain clearer rules and new obligations, including gratuity for fixed-term staff after one year, a higher 300-worker threshold for layoff approvals, free annual health checks for employees 40+, and single registration/licence/return, with fuller implementation hinging on forthcoming state rules.