New Labour Codes
Understand the change.
Assess your readiness.
Prepare with confidence.
India’s labour law landscape is undergoing the most significant transformation in decades. Four Labour Codes — covering wages, industrial relations, social security, and occupational safety and working conditions — consolidate and rationalise a large body of existing central labour legislation into a single, streamlined framework.
The Codes were brought into force with effect from 21 November 2025, and the central rules under all four Codes were notified in May 2026. However, labour remains a Concurrent List subject — state governments must frame and notify their own rules, at varying stages across the country. The practical result is an evolving regulatory framework in which an organisation’s actual obligations depend on its sector, workforce composition, establishment type and the states in which it operates.
VijayHR ComplyCare helps organisations stay informed, assess their readiness, and prepare for applicable requirements — with clarity, structure and practical guidance grounded in over 24 years of labour law and statutory compliance experience.
Consolidates legislation relating to minimum wages, payment of wages, payment of bonus and equal remuneration. Its most consequential feature is a uniform statutory definition of “wages” that applies across the compliance framework — a change that directly affects how salary structures are designed and how statutory liabilities are calculated.
Key Areas
- A uniform definition of wages applicable across statutory calculations
- Minimum wages and the applicable criteria for fixing them
- Structure of salary components and the relationship between basic pay and total remuneration
- Timely payment of wages, permissible deductions and wage periods
- Payment of bonus and eligibility conditions
- Equal remuneration and prohibition of gender-based wage discrimination
- Payroll processes, wage registers and wage slips
The Labour Codes are not a documentation exercise. They touch how organisations pay people, structure benefits, engage contractors and maintain records. The following areas warrant review.
Salary and wage structures — component-wise design may require review under the uniform wage definition.
Payroll processes — calculation logic, wage periods, deductions and payslip formats may need updating.
Statutory contributions — PF, ESI and other contributions flow from the wage definition, with cost implications to model in advance.
Multi-state employers face an additional layer of complexity. Because state rules are being notified at different times and with different procedural requirements, organisations operating across locations should assess their exposure state by state rather than assuming uniform treatment.
We work with organisations as a Labour Code readiness and compliance advisory partner — bringing structure, clarity and practical execution support to a complex transition.
01 Assess
We review your organisation’s existing labour law, HR, payroll and statutory compliance framework — registrations, licences, salary structures, contributions, documentation, registers, returns and establishment-level compliance.
02 Identify
We identify potential gaps, areas of exposure and processes that may require review — wage structure implications, benefit calculations, documentation deficiencies, contractor risks and state-specific considerations.
03 Advise
We provide practical guidance based on your business, workforce profile and applicable requirements — translating regulatory provisions into specific, actionable recommendations.
04 Implement
We support your teams in updating relevant processes, documentation, policies and compliance systems — from employment documentation to payroll structure changes and reporting.
05 Monitor
We continue tracking regulatory developments, central and state-level notifications, and support ongoing compliance readiness as the framework evolves.
Talk to our team about a Labour Code readiness assessment.
Stay informed. Stay prepared. Stay compliant.