India's four labour codes
India's four labour codes
The four labour codes in force since 21 November 2025: what changed for employers on wages, appointment letters, fixed-term staff and social security.
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4Codes replacing 29 central labour laws
21 Nov 2025In force across India
50%Wage rule: allowances above half of pay count as wages
The four codes
- Code on Wages, 2019: minimum wages, timely payment, equal pay and the wage definition.
- Industrial Relations Code, 2020: standing orders, fixed-term employment, layoffs and disputes.
- Code on Social Security, 2020: PF, ESI, gratuity, maternity benefit, and gig and platform workers.
- Occupational Safety, Health and Working Conditions Code, 2020: safety, working hours, leave and appointment letters.
What changes for employers
- Wages for PF, gratuity and bonus include allowances above 50% of total pay.
- Every employee gets a written appointment letter.
- Fixed-term employees get the same benefits as permanent staff, and gratuity after one year.
- Full and final settlement within two working days of exit, under the Code on Wages.
- State rules are still being notified; follow your state's rules as they are published.
Free tools for this
Do it in USR One. USR HRMS runs leave and attendance, and USR Payroll (add-on, India, by invitation) handles PF, ESI, PT, LWF and TDS on salary on the same employee record. Payroll software · USR HRMS