1. Code on Wages, 2019
What Has Changed
- A single universal definition of “wages” across all laws.
- Introduction of a national floor wage applicable across sectors.
- Minimum wages extended to all workers, including unorganised sectors.
- Timely wage payment made mandatory with stricter penalties for delays.
- Cap on allowances to ensure basic salary forms a fixed proportion of total pay.
Impact on Employers
- Need to restructure salary components (basic vs allowances).
- Higher statutory contributions towards PF, gratuity, bonus due to revised wage definition.
- Increased payroll compliance and transparency.
- Penalties for non-compliance and delayed payments are now stricter.
Impact on Employees
- Assured minimum wages across sectors.
- Higher PF, gratuity, and social security benefits.
- Greater salary transparency.
- In some cases, take-home salary may reduce, but long-term benefits increase.
Related: Statutory Benefits in India
4. Occupational Safety, Health and Working Conditions Code, 2020
What Has Changed
- Consolidation of multiple safety and working-condition laws.
- Uniform norms for working hours, overtime, and leave.
- Mandatory health and safety standards across establishments.
- Single registration and licence system for multiple approvals.
- Gender-neutral workplace safety provisions, including for night shifts.
Impact on Employers
- Standardised safety compliance across locations.
- Investment needed in workplace safety infrastructure.
- Reduced multiple licence and inspection burden.
- Higher liability in case of non-compliance with safety mandates.
Impact on Employees
- Safer and healthier working environments.
- Regulated working hours and welfare facilities.
- Improved protection for migrant and contract workers.
- Greater inclusion of women in diverse work shifts with safety safeguards.
Related: Diversity and Inclusion in the Workplace
A Structural Shift in India's Labour Ecosystem
The implementation of the new labour codes represents one of India's most ambitious labour reforms since Independence. By consolidating decades of scattered legislation into a single coherent framework, the government aims to improve regulatory efficiency, promote formal employment, and enhance worker welfare.
As state governments continue to implement supporting rules and enforcement mechanisms, both employers and employees are advised to stay informed and review their compliance, payroll, and HR practices to ensure alignment with the new legal regime