Code on Wages
Payroll, Bonus, & Min. Wages.
- 👉 50% Basic Pay Rule
- 👉 New "T+2" Settlement
Social Security Code
PF, ESI, Gratuity, & Maternity.
- 👉 Gratuity after 1 Year (FTE)
- 👉 Gig Worker Coverage
IR Code
Unions, Standing Orders, FTE.
- 👉 300 Worker Threshold
- 👉 Fixed Term Employment
OSH Code
Safety, Licenses, Migrants.
- 👉 Single License (Common)
- 👉 Women in Night Shifts
The Paradigm Shift: Before vs. After
| Feature | Pre-2025 Regime | New Labour Codes (2025) |
|---|---|---|
| Scope | Restricted. "Scheduled Employment" only. | Universal Coverage (All Industries). |
| Wages Definition | Complex & Varied (12 different definitions). | Unified "50% Rule" (Basic Pay ≥ 50% CTC). |
| Compliance | Multiple Registers & Returns per Act. | 1 License, 1 Registration, 1 Return. |
| Inspection | Policing Role ("Inspector"). Surprise Raids. | Advisory Role ("Facilitator"). Web-based. |
| Full & Final (FnF) | 30-45 Days (Industry Practice). | 2 Working Days (Mandatory). |
Consequences of Non-Compliance
The cost of ignoring these codes is no longer a minor expense. It is a threat to business continuity.
Minimum fine for first-time offences (up from ₹500).
Up to 3 months for repeat offences (Non-Compoundable).
Digital returns linked to Aadhaar/PAN trigger auto-notices.
The Transition Map
Find which New Code has replaced your Old Act.
| New Labour Code | Subsumed Acts (Repealed) |
|---|---|
| 1. Code on Wages, 2019 |
|
| 2. Industrial Relations Code, 2020 |
|
| 3. Social Security Code, 2020 |
|
| 4. OSH Code, 2020 |
Replaces 13 Acts including:
|
Are Your Offer Letters Compliant?
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