Is the New Labour Code Applicable From 2026? Implementation Status, Dates & What HR Must Do Now

Is the New Labour Code Applicable From 2026? — The Definitive Status Update

Quick answer: Yes. India’s 4 New Labour Codes are operational since 21 November 2025. The Central Government notified the final Central Rules on 8 May 2026. Enforcement is active across all states, even those whose state-level rules are still pending.

Implementation Timeline

The 4 Codes That Are Now In Effect

1. Code on Wages, 2019 — subsumes 4 legacy acts (Payment of Wages, Minimum Wages, Payment of Bonus, Equal Remuneration).
2. Code on Social Security, 2020 — subsumes 9 acts including Payment of Gratuity, EPF, ESI, Maternity Benefit.
3. Industrial Relations Code, 2020 — subsumes 3 acts (Industrial Disputes, Trade Unions, Standing Orders).
4. OSH & Working Conditions Code, 2020 — subsumes 13 acts (Factories, Contract Labour, Inter-State Migrant Workers, etc.).

→ See our full Amalgamation Matrix for all 29 repealed laws.

What Changes for HR Right Now

1. Mandatory Appointment Letters — for Every Hire

No longer optional. Every employee — permanent, fixed-term, contract — must receive a written appointment letter on or before joining. (OSH Code, Section 6)

2. The 50% Basic Salary Rule

“Excluded allowances” (HRA, conveyance, special) cannot exceed 50% of total remuneration. Excess is deemed as wages — directly inflating PF, gratuity, and bonus. → Read our 50% Basic Pay Rule guide.

3. 48-Hour Week Cap, 8-Hour Day Cap

Strict statutory limit. Overtime above this must be paid at 2× regular wage. (OSH Code, Sections 25 & 27)

4. Gratuity for Fixed-Term Employees After 1 Year

Previously 5 years; now pro-rata from the 1-year mark for FTC employees. (Social Security Code, Section 53)

5. 2-Day Full & Final Settlement

Whether resignation, termination, or retrenchment — all dues settled within 2 working days. (Wages Code, Section 17)

6. Gig & Platform Workers Formally Covered

Aggregators must register workers within 45 days, and may contribute 1–2% of turnover (capped at 5% of payments) to a social security fund. (Social Security Code, Sections 113–114)

7. Women Allowed on Night Shifts Everywhere

With written consent and safety arrangements — applicable across all establishments. (OSH Code, Section 43)

State-Wise Status (as of June 2026)

→ See live tracker: State Rules Tracker

• Finalised (19): Karnataka, Maharashtra, Tamil Nadu, Gujarat, Haryana, MP, UP, Uttarakhand, Goa, Punjab, Rajasthan, Telangana, AP, Odisha, Kerala, J&K, Tripura, Manipur, Arunachal.
• Draft published (11): West Bengal, Chhattisgarh, Bihar, Jharkhand, HP, Assam, Meghalaya, Nagaland, Mizoram, Sikkim, Lakshadweep.
• Pending (6): Delhi (UT), Chandigarh, Puducherry, A&N Islands, D&NH-Daman & Diu, Ladakh.

⚠ Even where state rules are pending, the Central Rules apply by default and courts are enforcing penalties. Don’t wait.

Penalty Risk if You’re Non-Compliant

• Delayed wage settlement: 1% interest per month (12% per year) on unpaid amount.
• Failure to pay gratuity within 30 days: Simple interest + possible criminal proceedings.
• No appointment letter: Up to ₹50,000 fine per worker per offence.
• First-time offences: Compoundable; repeat offences within 5 years are not.

What HR Should Action This Quarter

1. Audit every employee’s CTC for 50% basic compliance
2. Re-issue appointment letters to anyone hired before Nov 2025 without one
3. Update F&F SOP to a 2-day timeline
4. Refresh leave policy: 180-day eligibility, 30-day max carry-forward
5. Add the 45 statutory deadlines to payroll calendar → Compliance Calendar
6. Onboard gig-worker registration flow if you’re an aggregator
7. Brief your auditor on the new gratuity accrual base

Frequently Asked Questions

Has the Government postponed the New Labour Code rollout? No. The Codes are operational from 21 November 2025 and Central Rules are notified. Earlier rumours of indefinite delay are outdated.

My state hasn’t notified its rules yet — am I exempt? No. Central Rules apply by default until your state notifies its own. Courts have already enforced provisions against employers in “pending” states.

When does the EPF transition window end? November 2026 — after which the new wage base (Section 2(88)) applies fully to PF contributions.

Will my take-home salary reduce? For most employees with current basic below 50% of CTC, yes — slightly. PF and gratuity deductions will rise. Some employers are restructuring CTC to absorb the impact.

Last verified: 8 May 2026 · Aligned with Ministry of Labour & Employment’s notified Central Rules.

Related resources:

• Amalgamation Matrix — 29 Repealed Acts Mapped
• State Rules Tracker
• Compliance Calendar — 45 Statutory Deadlines
• HR Transition Checklist