Labour Code Reckoner 2025

On 25 August 2026, the Ministry of Labour and Employment issued two notifications (Notifications) under the Code on Wages, 2019 (Wage Code), thereby operationalising specified provisions relating to payment of statutory bonus for establishments for which the appropriate government is the Central Government. The Wage Code consolidates the legislative framework governing wages and related employee entitlements, including the regime previously governed by the Payment of Bonus Act, 1965.

India's Ministry of Labour and Employment has notified the Code on Wages (Central) Rules, 2026, operationalizing the Code on Wages, 2019. These comprehensive rules establish frameworks for minimum wage fixation, working hours standardization, permissible wage deductions, bonus computation methodologies, and enhanced principal employer accountability in contractor-based employment arrangements.

The Ministry of Labour and Employment has notified the Social Security Code (Central) Rules, 2026, establishing a comprehensive regulatory framework for provident fund, employee state insurance, gratuity, maternity benefits, and gig worker protections.

The Ministry of Labour & Employment has issued a notification dated September 17, 2026, notifying INR 25,000 per month as the new wage ceiling for the purposes of the provident fund provisions (“PF“) of the Code on Social Security, 2020 (“SS Code”). The notification is effective from September 17, 2026. The wage ceiling was last revised 12 years ago in September 2014, when it was increased from INR 6,500 per month to INR 15,000 per month.

Over the years, the pensionable salary was altered vide various amendments to the EPS.

The notification of the Employees' Provident Funds Scheme, 2026 (‘2026 Scheme’) with effect from 1 July 2026, was anticipated to settle and provide clarity on the regulatory framework governing international workers under the Code on Social Security, 2020.

The Government of Karnataka's notification dated 22 May 2026 revising minimum wages across the State has generated significant attention among employers, industry bodies, and labour law practitioners.

The article discusses the new Provident Fund Scheme, 2026, including its effective date, the transition period, statutory minimum versus voluntary higher contributions, voluntary contributions under the 2026 Scheme, and what are the practical implications for employers.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (“POSH Act”) came into force following the landmark Vishaka v. State of Rajasthan case, which highlighted the need for legal frameworks to address sexual harassment at the workplace.

India’s new Labour Codes have fundamentally changed the way employers structure compensation. Salary structures that traditionally relied on allowance-heavy components to manage statutory obligations are unlikely to remain viable under the new regime.