India consolidated 29 central labour laws into four Labour Codes. Parliament passed them in 2019 and 2020, and the Government of India brought them into force on 21 November 2025. Because labour is on the Concurrent List, both the Centre and the states make rules under the Codes, and the rule-making ran on into 2026.
The four Codes
| Code | Replaces (examples) | HR impact |
|---|---|---|
| Code on Wages, 2019 | Payment of Wages, Minimum Wages, Payment of Bonus, Equal Remuneration Acts | Uniform wage definition, floor wage, timely payment |
| Code on Social Security, 2020 | EPF, ESI, Gratuity, Maternity Benefit Acts | PF/ESI/gratuity base, fixed-term gratuity, gig and platform workers |
| Industrial Relations Code, 2020 | Industrial Disputes, Trade Unions, Standing Orders Acts | Standing orders threshold, fixed-term employment, retrenchment |
| OSH Code, 2020 | Factories Act, Contract Labour Act and others | Working hours, annual leave, appointment letters, registrations |
The five changes HR and payroll should model
- Uniform "wages". Wages include basic pay, dearness allowance and retaining allowance; listed exclusions (such as HRA and conveyance) above 50% of total remuneration are added back. This affects PF, gratuity and other wage-linked benefits.
- Fixed-term employment on parity with permanent staff, with gratuity after one year.
- Appointment letters for workers under the OSH Code.
- Social security for gig and platform workers through schemes funded partly by aggregators.
- Working-hours and leave rules under the OSH Code, with states setting detail.
What is still moving
When the Codes took effect, some central rules and many state rules were not yet final, and earlier provisions continued where new rules were pending. Treat this as a live area: check the Ministry of Labour & Employment's Labour Codes page and your state labour department for the operative rules and FAQs before changing salary structures.
A practical review list
- Recompute the wage base for each salary structure against the 50% test.
- Re-estimate gratuity liabilities, especially for fixed-term staff.
- Check appointment-letter templates and registers.
- Confirm which state rules apply to each employee's work location.
Sources and review date
Facts in this article were checked against the official sources below as of 8 October 2026. Rates, wage ceilings, due dates and forms change by notification, so confirm on the source before acting.
- Labour Codes page, Ministry of Labour & Employment
- Ministry of Labour & Employment (labour.gov.in)
- India Code (indiacode.nic.in) — official text of central Acts
This is a general explainer written by the Kyrospect editorial team, not legal, tax or payroll advice. Applicability depends on your state, headcount, establishment type and contracts — confirm with a qualified professional or the authority concerned.
Where Kyrospect fits: Kyrospect HRMS holds employee records and Tracking records shift hours on the same identity. It does not calculate or file PF, ESI, professional tax, TDS or gratuity today — payroll is planned and gated on statutory compliance work. See the roadmap for current status.