India’s labour-law framework has undergone a major restructuring through the consolidation of 29 Central labour laws into four Labour Codes. The Government brought all four Codes into force from 21 November 2025, making 2026 an important year for employers, HR teams, payroll professionals, factories, contractors and compliance teams to align their policies, payroll structures, registers, records and statutory processes with the new framework.
The four Labour Codes are:
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions Code, 2020
FACILE provides dedicated e-Library references for each Code:
Industrial Relations Code, 2020
Occupational Safety, Health and Working Conditions Code, 2020
Why Were the Four Labour Codes Introduced?
India previously had numerous Central labour laws governing wages, industrial disputes, social security, factories, contract labour, occupational safety and employment conditions.
The new Labour Code framework was designed to consolidate and simplify these laws into four broader Codes covering:
| Labour Code | Main Area |
|---|---|
| Code on Wages, 2019 | Wages, minimum wages, bonus and equal remuneration |
| Industrial Relations Code, 2020 | Industrial relations, trade unions, standing orders and industrial disputes |
| Code on Social Security, 2020 | EPF, ESIC, gratuity, maternity and social security |
| OSH & WC Code, 2020 | Safety, health and working conditions |
The Ministry of Labour and Employment states that implementation of the four Codes rationalized 29 existing Central labour laws.
1. Code on Wages, 2019
The Code on Wages, 2019 consolidates key wage-related laws and establishes a common framework for wage payments, minimum wages, bonus and equal remuneration.
It affects employers across industries because wage compliance is directly connected with payroll.
Important Areas Covered Under the Code on Wages
The Code broadly covers:
- Definition of wages
- Minimum wages
- Floor wage
- Wage payment
- Wage periods
- Overtime
- Deductions
- Bonus
- Equal remuneration principles
- Employer records
- Wage-related compliance
Common Definition of Wages
One of the most important aspects of the Labour Codes is the standardized definition of wages.
The structure broadly considers specified remuneration components while excluding certain items subject to statutory conditions and limits.
This can affect:
- Basic salary structures
- Allowances
- PF calculations
- Gratuity calculations
- Bonus
- Overtime
- Payroll configuration
- Cost-to-company structures
Employers should therefore review salary structures rather than assuming that historical payroll definitions continue unchanged.
Minimum Wages
The Code expands the statutory minimum-wage framework and allows governments to prescribe minimum wages based on factors such as:
- Skill category
- Geographical area
- Nature of employment
- Work category
Employers should continue to monitor Central and State notifications for applicable wage rates and effective dates.
Floor Wage
The Central Government may determine a floor wage after considering minimum living standards and geographical differences.
State minimum wages should operate within the framework prescribed under the Code.
Payment of Wages
Employers must ensure timely payment of wages according to the applicable wage period and prescribed requirements.
Payroll systems should therefore maintain controls for:
- Wage period
- Date of payment
- Wage calculation
- Deductions
- Overtime
- Minimum wage comparison
- Supporting wage records
Bonus
The Code also incorporates provisions dealing with statutory bonus.
Employers should verify:
- Employee eligibility
- Wage ceilings
- Minimum bonus
- Maximum bonus
- Accounting year
- Set-on and set-off provisions
- Payment timelines
Why the Code on Wages Matters to Employers
The Code has direct implications for:
- Payroll configuration
- Salary restructuring
- Minimum wages
- contractor payroll
- Wage registers
- Bonus
- overtime calculations
- employee deductions
- wage-payment timelines
Read more:
2. Industrial Relations Code, 2020
The Industrial Relations Code, 2020 consolidates laws dealing with trade unions, industrial disputes and standing orders.
The Central Government formally appointed 21 November 2025 as the date on which the Code came into force.
Major Areas Covered
The Code addresses:
- Trade unions
- Negotiating unions
- Negotiating councils
- Standing orders
- Grievance Redressal Committees
- Industrial disputes
- strikes
- lock-outs
- lay-off
- retrenchment
- closure
- Industrial Tribunals
- worker re-skilling
Trade Unions
The Code provides a framework for:
- Trade-union registration
- Recognition
- Negotiating unions
- Negotiating councils
- Union governance
Where multiple registered trade unions operate within an establishment, the Code contains mechanisms for recognizing bargaining representation.
Standing Orders
Industrial establishments meeting the applicable statutory threshold may be required to prepare and maintain standing orders dealing with matters such as:
- Worker classification
- Attendance
- Shift working
- Leave
- Misconduct
- disciplinary procedures
- suspension
- termination
Employers should review existing standing orders against the Code and applicable rules.
Grievance Redressal Committee
Covered establishments may need to maintain a Grievance Redressal Committee for resolving individual employee grievances.
This makes grievance governance an important part of industrial-relations compliance.
Strikes and Lock-Outs
The Code establishes procedural requirements relating to strikes and lock-outs, including notice requirements in applicable circumstances.
HR and industrial-relations teams should therefore maintain structured processes for:
- Notices
- Conciliation
- dispute records
- worker communications
- legal approvals
Retrenchment and Closure
The Code regulates employer obligations relating to:
- Lay-off
- retrenchment
- closure
- worker compensation
- notice
- government permission in applicable establishments
Worker Re-Skilling Fund
The Code introduces provisions for a worker re-skilling fund intended to support retrenched workers.
Industrial Relations Central Rules 2026
The Industrial Relations (Central) Rules, 2026 were notified on 8 May 2026 and came into force on the date of publication in the Official Gazette.
Employers should nevertheless identify whether the Central Government or a State Government is the appropriate government for their establishment because applicable subordinate rules can vary accordingly.
Read more:
Industrial Relations Code, 2020
The Code on Social Security, 2020 consolidates multiple social-security laws within a common statutory framework.
The Ministry of Labour and Employment confirmed that the Code was enforced from 21 November 2025.
Major Areas Covered
The Code broadly covers:
- Employees’ Provident Fund
- Employees’ State Insurance
- gratuity
- maternity benefits
- employee compensation
- social security for unorganized workers
- gig workers
- platform workers
- building and construction workers
- employment-related social-security schemes
Employees’ Provident Fund
EPF remains an important employer compliance area.
Employers should monitor:
- Employee eligibility
- UAN
- PF wages
- Employee contribution
- Employer contribution
- ECR
- challans
- payment confirmation
- records
Employees’ State Insurance
ESI-related compliance can include:
- Employee coverage
- wage eligibility
- employee contribution
- employer contribution
- registration
- benefit-related records
- payment
- reporting
Gratuity
The Code contains gratuity provisions and introduces important considerations for categories such as fixed-term employees.
Employers should review:
- Eligibility
- continuous service
- wage basis
- nomination
- payment
- fixed-term employment cases
Maternity Benefit
The Code brings maternity-related social-security provisions within the consolidated framework.
Employers should maintain policies and records relating to:
- maternity leave
- eligibility
- payment
- nursing breaks
- crèche requirements where applicable
- supporting records
Gig and Platform Workers
One of the significant features of the Code is recognition of:
- Gig workers
- Platform workers
- Unorganized workers
The Ministry has specifically highlighted the Code’s goal of extending social-security coverage to organized, unorganized, gig, platform and self-employed workers.
The Central and State Governments may frame schemes under the Code for different classes of workers.
Compliance teams should therefore monitor subsequent:
- Rules
- schemes
- Gazette notifications
- contribution requirements
- registration procedures
- implementation dates
Read more:
4. Occupational Safety, Health and Working Conditions Code, 2020
The Occupational Safety, Health and Working Conditions Code, 2020, commonly called the OSH Code, consolidates legislation dealing with workplace safety, health and conditions of employment.
All provisions were brought into force from 21 November 2025. The Ministry’s later draft Central Rules expressly record notification S.O. 5321(E) dated 21 November 2025 as bringing all provisions of the Code into force.
Major Areas Covered
The OSH Code addresses:
- Workplace safety
- occupational health
- working conditions
- employee welfare
- working hours
- leave
- contract labour
- inter-state migrant workers
- factories
- mines
- construction workers
- appointment letters
- establishment registration
- licences
- health examinations
- accident reporting
Employer Duties
Employers are expected to maintain safe workplaces and comply with applicable occupational-health and safety standards.
Compliance may include:
- Safety procedures
- health standards
- welfare facilities
- medical examinations
- accident reporting
- working-hour records
- employee information
- statutory notices
Appointment Letters
The OSH framework emphasizes formal employment documentation, including appointment letters for employees in covered establishments.
HR teams should therefore ensure employee records are properly documented.
Working Hours
Working hours, rest intervals, spread-over, weekly holidays and overtime requirements must be managed according to the Code and applicable rules.
Contract Labour
The Code consolidates major provisions previously governed through separate contract-labour legislation.
Principal employers and contractors should review:
- Contractor licensing
- worker records
- wages
- welfare facilities
- responsibilities of principal employer
- employment conditions
- contractor compliance
Inter-State Migrant Workers
The Code contains specific provisions relating to inter-state migrant workers, including registration and welfare-related requirements in applicable circumstances.
Factories and Establishments
Covered factories and establishments should monitor:
- Registration
- licence
- working hours
- safety requirements
- welfare
- health examinations
- accident records
- statutory registers
- contractor records
OSH Central Rules
Following commencement of the Code, the Ministry published draft Occupational Safety, Health and Working Conditions Central Rules at the end of 2025 for stakeholder consultation.
Because labour is an area involving both Central and State rule-making, employers should determine the appropriate government applicable to each establishment and monitor the corresponding final rules.
Read more:
Occupational Safety, Health and Working Conditions Code, 2020
Comparison of the Four Labour Codes
| Labour Code | Main Compliance Area | Major Employer Impact |
|---|---|---|
| Code on Wages, 2019 | Wages | Salary, minimum wages, bonus, deductions |
| Industrial Relations Code, 2020 | Industrial Relations | Standing orders, unions, disputes, retrenchment |
| Code on Social Security, 2020 | Social Security | PF, ESI, gratuity, maternity, social-security schemes |
| OSH & WC Code, 2020 | Safety & Working Conditions | Factories, safety, working hours, contract labour |
Effective Date of the Four Labour Codes
The Government of India implemented all four Labour Codes with effect from:
21 November 2025
This applies to:
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions Code, 2020
The Ministry’s 2025 year-end review expressly confirms this implementation date and states that the four Codes rationalized 29 Central labour laws.
Labour Codes and State Rules
Implementation does not mean that every establishment follows one identical set of procedural rules nationwide.
The Codes allocate rule-making powers between:
- Central Government
- State Governments
- Appropriate Government
Therefore, employers should monitor both:
Central Rules
Applicable where the Central Government is the appropriate government.
State Rules
Applicable where the relevant State Government is the appropriate government.
This is particularly important for multi-state organizations.
Labour Code Compliance Checklist for Employers
Employers should review:
- Salary structure
- Definition of wages
- Minimum wage mapping
- Payroll deductions
- Bonus
- Overtime
- PF
- ESI
- gratuity
- maternity benefits
- employee appointment letters
- standing orders
- grievance committees
- disciplinary procedures
- retrenchment processes
- contractor licences
- inter-state migrant workers
- health and safety records
- registers and returns
- working hours
- leave
- statutory policies
Labour Codes and Payroll
The Labour Codes can affect payroll through changes involving:
- Wage definition
- salary components
- minimum wages
- PF
- gratuity
- bonus
- overtime
- deductions
- statutory records
Organizations should therefore align payroll configuration with legal and HR compliance rather than treating Labour Code implementation only as a legal-policy exercise.
Labour Codes and Contractor Compliance
Principal employers should also evaluate contractors under the new framework.
Important contractor controls include:
- Worker registration
- Appointment documentation
- Minimum wages
- attendance
- wage payments
- PF
- ESIC
- overtime
- working hours
- contractor licence
- safety
- welfare
- statutory registers
Labour Codes and Statutory Registers
The new framework may alter the form, format or consolidation of statutory records.
Employers should monitor applicable Rules for requirements relating to:
- Employee registers
- attendance registers
- wage registers
- overtime records
- deduction records
- leave records
- accident registers
- contractor records
- social-security records
The prescribed forms can differ between Central and State Rules.
Why Multi-State Employers Need State-Wise Labour Code Tracking
A company with establishments in several states cannot rely only on Central-level implementation information.
It should track:
Code → State → Rules → Effective Date → Register → Return → Compliance Activity
For example, the same Labour Code may be in force nationally while individual states prescribe their own procedural forms, registers and authorities through State Rules.
Common Labour Code Compliance Risks
Outdated Salary Structures
Payroll may continue using historical wage definitions without reviewing the Code.
Incorrect Minimum Wage Mapping
Employees may be assigned to the wrong skill, zone or scheduled-employment category.
Missing State Rules
Teams may track Central Rules while overlooking applicable State Rules.
Old Registers
Businesses may continue using superseded statutory formats.
Contractor Non-Compliance
Principal employers may fail to align contractor documentation with the new framework.
Wrong Effective Dates
A Code, Rule or amendment may be applied from the wrong date.
Draft Rules Treated as Final
Draft notifications should not automatically be treated as final enforceable rules.
How FACILE Can Help with Labour Code Compliance
FACILE can support organizations in organizing Labour Code requirements across:
- Codes
- States
- establishments
- rules
- effective dates
- registers
- returns
- minimum wages
- payroll
- contractors
- licences
- compliance activities
- notifications
A centralized compliance workflow helps HR, payroll and legal teams understand which statutory requirement applies to each location.
FACILE Labour Code e-Library
Explore the four Codes individually:
Code on Wages, 2019
https://www.facilemanagement.com/e-library/code-on-wages-2019
Industrial Relations Code, 2020
https://www.facilemanagement.com/e-library/industrial-relations-code-2020
Code on Social Security, 2020
https://www.facilemanagement.com/e-library/code-on-social-security-2020
Occupational Safety, Health and Working Conditions Code, 2020
https://www.facilemanagement.com/e-library/osh-code-2020
Conclusion
The four Labour Codes represent one of the largest restructurings of India’s labour-law framework.
From 21 November 2025, the four Codes provide the statutory foundation for wage regulation, industrial relations, social security and occupational safety and working conditions.
For employers in 2026, effective compliance requires more than simply knowing that the Codes have commenced. Organizations should identify the applicable Central or State Rules, effective dates, payroll impact, registers, returns, licences, employee categories and contractor obligations for every establishment.
A structured state-wise Labour Code compliance system can help organizations manage these changes while maintaining accurate payroll, statutory documentation and audit readiness.
FAQs – Labour Codes in India 2026
1. What are the four new Labour Codes in India?
The four Labour Codes are the Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020.
2. When did the four Labour Codes become effective?
All four Labour Codes were implemented with effect from 21 November 2025.
3. How many labour laws were consolidated into the four Codes?
The Ministry of Labour and Employment states that the four Codes rationalized 29 existing Central labour laws.
4. What does the Code on Wages, 2019 cover?
It broadly covers minimum wages, wage payment, bonus, equal remuneration and the statutory definition of wages.
5. What does the Industrial Relations Code, 2020 cover?
It governs areas including trade unions, standing orders, industrial disputes, strikes, lock-outs, retrenchment and closure.
It consolidates social-security provisions relating to areas such as EPF, ESIC, gratuity, maternity benefits and schemes for unorganized, gig and platform workers.
7. What does the OSH Code, 2020 cover?
It deals with occupational safety, health, working conditions, factories, contract labour, inter-state migrant workers and related establishment obligations.
8. Is the Code on Wages applicable only to factories?
No. Its wage framework has broad application according to the provisions of the Code and applicable rules.
9. What is the new definition of wages?
The Codes introduce a standardized statutory framework for determining which remuneration components are included or excluded from wages. Employers should review the precise statutory definition before restructuring salary.
10. Will the Labour Codes affect salary structure?
Potentially yes. The wage definition can affect payroll structure and calculations connected with social-security and employment benefits.
11. Does the Code on Wages cover minimum wages?
Yes. Minimum-wage regulation is a major component of the Code.
Yes. The Code recognizes gig and platform workers and enables social-security schemes for such categories.
13. Does the OSH Code cover contract labour?
Yes. Contract-labour regulation is incorporated into the OSH and Working Conditions framework.
14. Are State Labour Code Rules important?
Yes. Employers should identify whether the Central or State Government is the appropriate government and follow the applicable subordinate Rules.
15. Are Labour Code Rules the same in every state?
No. States may prescribe their own Rules, forms, authorities and procedural requirements under the Codes.
16. Are the Industrial Relations Central Rules final?
Yes. The Industrial Relations (Central) Rules, 2026 were notified on 8 May 2026 and came into force on publication in the Official Gazette.
17. Should draft Labour Code Rules be treated as final?
No. Draft Rules are published for consultation and should not automatically be treated as final enforceable Rules.
18. Do employers need to change statutory registers?
Employers should verify applicable Central or State Rules because prescribed register formats and consolidated records may change.
19. Will Labour Codes affect contractors?
Yes. Contractor payroll, wages, social-security compliance, licensing, safety and worker records can be affected by the Codes.
20. How should multi-state employers manage Labour Code compliance?
They should maintain a state-wise framework linking each Code with the applicable Rules, effective dates, registers, returns, licences and compliance activities.
No. EPF continues within the consolidated social-security framework rather than being eliminated.
No. ESI continues as part of the social-security framework.
23. Does the Industrial Relations Code deal with standing orders?
Yes. Standing orders remain an important area regulated under the Industrial Relations Code.
24. Does the OSH Code apply to workplace safety?
Yes. Occupational safety and health are central components of the Code.
25. Where can I check all four Labour Codes?
FACILE provides separate e-Library pages for the Code on Wages, Industrial Relations Code, Social Security Code and OSH Code for easier compliance reference.
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