Quick answer: The Labour Codes are four laws that consolidate India’s central employment legislation. They are the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020. They took effect on 21 November 2025 and rationalised 29 central labour laws.
- Four gazette notifications, S.O. 5319(E) to 5322(E), brought the Codes into force on 21 November 2025.
- Final central rules came on 8 May 2026 as G.S.R. 342(E) to 345(E), with the Model Standing Orders, 2026 issued that day.
- Most private employers fall under state rules, and Maharashtra’s were released only as drafts in April 2026.
- State Shops and Establishments Acts continue alongside the Codes.
What does each of the four labour codes cover?
Each Code absorbs a family of older Acts. Together they replace 29.
| Code | Acts absorbed | Examples of what it replaced |
|---|---|---|
| Code on Wages, 2019 | 4 | Payment of Wages, Minimum Wages, Payment of Bonus, Equal Remuneration |
| Industrial Relations Code, 2020 | 3 | Industrial Disputes, Trade Unions, Industrial Employment (Standing Orders) |
| Code on Social Security, 2020 | 9 | EPF, ESI, Maternity Benefit, Payment of Gratuity, Employees’ Compensation |
| OSH Code, 2020 | 13 | Factories, Contract Labour (Regulation and Abolition), Mines |
The Code on Wages became law in August 2019 and the other three in September 2020, yet none of them took effect until the November 2025 notifications.
What changed for employers on 21 November 2025?
Pay, paperwork and exits all moved at once. These five changes reach an ordinary Indian payroll first.
- The 50% wage rule adds back allowances above half of pay, lifting PF and gratuity.
- Every employee must receive an appointment letter.
- Leavers get final wages within two working days.
- Fixed-term staff earn gratuity after one year.
- Annual leave starts after 180 days worked, down from 240.
The rules lagged. Draft central rules came in December 2025, and KPMG’s flash news on the final rules records their notification on 8 May 2026.
Those central rules mainly bind where the Centre is the appropriate government, such as banking, telecom and central public sector units. Everyone else waits on their state.
Where a state has not finished, the Labour Ministry’s FAQ position is simple. Old rules continue. But only so far as they are consistent with the Codes, which means you test each old rule against the new text before relying on it.
How do the Labour Codes reach a team hired through an EOR?
The EOR carries them, because it is the employer the Codes address. It restructures salaries for the 50% test, issues appointment letters, files social security returns and pays final dues on time.
Your budget moves, though. Higher “wages” mean higher employer PF and gratuity accrual inside a fixed CTC, so ask your EOR to re-run each salary structure.
Our overview of labour laws in India covers each Code in more depth. Our note on contractor benefits covers people who sit outside employment.
How does Remunance apply the Labour Codes for your India team?
As your employer of record, Remunance applies the Codes to every contract, payslip and exit for the people it hires for you. We serve 150+ international clients from 22 countries, so we are used to explaining Indian rules to teams who run very different systems at home. To see what the Codes change in your India budget, talk to our India employment team.
What else do people ask about the new labour codes?
When did the new labour codes come into force?
On 21 November 2025, through four gazette notifications. Final central rules followed on 8 May 2026, and state rules are still being finalised.
Are the four labour codes in force in Maharashtra?
Yes, the Codes apply nationwide. Maharashtra’s own rules under them were still drafts at last check, so existing state rules continue where consistent.
Did the Labour Codes repeal the Shops and Establishments Act?
No. Each state’s Shops and Establishments Act sits outside the Codes and still governs hours, leave and holidays.