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India Puts Four Labour Codes Into Force, Replacing 29 Laws With a Unified Framework

Attention now turns to rulemaking to operationalise digital compliance nationwide.

Overview

  • The Codes took effect on November 21, 2025, consolidating 29 central labour statutes into four laws covering wages, industrial relations, social security and workplace safety.
  • A uniform definition of wages caps allowances at 50 percent of pay, lifting provident fund and gratuity contributions and potentially trimming some take-home salaries.
  • Minimum wages now apply to all workers alongside a national floor wage, with timely payment guarantees, double-rate overtime and explicit protections against gender-based pay discrimination.
  • Gig and platform workers gain formal social-security coverage funded by mandatory aggregator contributions of 1–2 percent of turnover, subject to a cap tied to payouts.
  • Compliance shifts to a single digital regime with one registration, one licence and one electronic return, as fixed-term employees receive parity and gratuity after one year and the layoff-approval threshold rises to 300 workers.