Labour Codes Overview

From 29 laws to 4 codes

India has consolidated 29 central labour laws into four Labour Codes to simplify and modernise the framework. While implementation is phased, understanding their structure is essential for every employer.

The four codes

1. The Code on Wages, 2019 — unifies minimum wages, payment of wages, bonus and equal remuneration. 2. The Industrial Relations Code, 2020 — covers trade unions, standing orders and dispute resolution. 3. The Code on Social Security, 2020 — consolidates PF, ESI, gratuity, maternity and gig-worker welfare. 4. The Occupational Safety, Health and Working Conditions (OSH) Code, 2020 — covers safety, working hours and conditions.

Key changes

The codes introduce a uniform definition of 'wages', a national floor wage, simplified single registration/licence/return, expanded social security (including gig and platform workers), and easier compliance through digital filing.

Why it matters

The new 'wages' definition affects PF, gratuity and other contributions, often increasing employer costs. Employers should model the impact on CTC structures and prepare policies and payroll systems for the transition.