Labour law knowledge base
Plain-language notes on the four Labour Codes, EPF, ESIC, State laws, special categories of workers, government schemes and due dates — searchable in one place.
Code on Wages, 2019The four Labour Codes — what replaced whatThe Code on Wages, the Industrial Relations Code, the Code on Social Security and the OSH Code came into force on 21 November 2025 and replaced 29 Central labour laws.Code on Wages, 2019Definition of wages and the 50% ruleWages are basic pay, dearness allowance and retaining allowance. If the excluded items exceed half of total remuneration, the excess is added back to wages.Code on Wages, 2019Minimum wages and the floor wageEvery employee, in every establishment, is entitled to the minimum rate of wages fixed by the appropriate government. That rate cannot be below the floor wage set by the Central Government.Code on Wages, 2019When wages must be paidMonthly wages by the 7th of the next month. Dues on removal, dismissal, retrenchment or resignation within two working days.Code on Wages, 2019Permitted deductions from wagesOnly the deductions in s. 18 of the Code on Wages are allowed, and in a wage period they cannot total more than 50% of wages.Code on Wages, 2019Overtime — rate and limitsOvertime is paid at twice the ordinary rate of wages. Daily and quarterly limits come from the OSH Code and the State or Central Rules.Code on Wages, 2019Equal pay — no discrimination on genderNo discrimination in wages, recruitment or conditions of employment for the same or similar work on the ground of gender, including transgender persons.Code on Wages, 2019Bonus — eligibility, rate and paymentEmployees drawing wages up to the notified limit who have worked 30 days in the year get a minimum bonus of 8.33% (or ₹100), up to 20%, on wages capped at the calculation ceiling.Code on Wages, 2019Registers, wage slip and notices under the Code on WagesEmployers keep registers electronically or on paper in the prescribed forms, issue wage slips, and display an abstract of the Code.Code on Wages, 2019Claims for unpaid wages and bonusAn employee, a trade union or an Inspector can file a claim within three years for unpaid wages, short payment, or illegal deductions.Code on Social Security, 2020Code on Social Security — who it coversEPF, ESIC, gratuity, maternity benefit, employees' compensation, building workers' cess, and social security for unorganised, gig and platform workers, all in one Code.Code on Social Security, 2020Gratuity — eligibility, formula and ceilingGratuity is 15 days' wages for each completed year of service after five years (one year for fixed-term employees), up to the ₹20 lakh ceiling.Code on Social Security, 2020Maternity benefit — 26 weeks, eligibility and other rightsA woman who has worked 80 days in the 12 months before the expected delivery is entitled to 26 weeks' paid leave (12 weeks from the third child), with medical bonus, nursing breaks and a creche.Code on Social Security, 2020Employees' compensation for accidents and occupational diseaseDeath: 50% of monthly wages × relevant factor. Permanent total disablement: 60% × relevant factor. Both are subject to the notified minimum, with funeral expenses of at least ₹15,000.Code on Social Security, 2020Building and other construction workers' cessEmployers in building or construction work pay a cess of 1% to 2% of the cost of construction (1% as notified), which funds the State BOCW welfare board.Code on Social Security, 2020Social security for unorganised workersUnorganised workers, including home-based and self-employed workers, register on e-Shram and get access to Central and State schemes for life and disability cover, health, old age and more.EPF & EPSEPF — coverage, rates and the ₹25,000 ceilingEPF applies to establishments with 20 or more employees. Employee and employer each contribute 12% of wages. From 17 September 2026 the wage ceiling is ₹25,000, and EPS is paid on wages up to ₹15,000.EPF & EPSEPS contribution limited to wages up to ₹15,000 — G.S.R. 890(E)The Employees' Pension (Amendment) Scheme notified on 15 October 2026 limits the pension contribution to wages up to ₹15,000 a month, effective 17 September 2026.EPF & EPSEPFO recruitment rules notified (September–October 2026)Recruitment rules for Assistant Provident Fund Commissioner, Assistant Director (Official Language) and Junior Social Security Assistant posts in EPFO have been notified. They do not change payroll.EPF & EPSEPF member services — which form for whatUAN activation, KYC, transfer, withdrawal, pension and nomination. Most services are online through the member portal or UMANG.Government schemes for workersEmployment-linked incentive — PM Viksit Bharat Rozgar YojanaFor jobs created from 1 August 2025 to 31 July 2027, first-time employees get up to ₹15,000, and employers get up to ₹3,000 a month for each additional employee.ESICESIC — coverage, rates and benefitsEmployees earning up to ₹21,000 a month (₹25,000 for persons with disability) in establishments with 10 or more employees are covered. Contribution: employee 0.75%, employer 3.25%.Industrial Relations Code, 2020Industrial Relations Code — key thresholdsGrievance Redressal Committee (20+), works committee (100+), standing orders (300+), prior permission for lay-off, retrenchment and closure (300+), and a notice before strikes.Industrial Relations Code, 2020Retrenchment, lay-off and closure compensationRetrenchment: one month's notice or pay, and 15 days' average pay for every completed year. Lay-off: 50% of basic plus DA. Re-skilling fund: 15 days' wages.Industrial Relations Code, 2020Standing orders, misconduct and domestic enquiryEstablishments with 300 or more workers adopt standing orders based on the model. All employers should follow natural justice before punishing misconduct.OSH Code, 2020OSH Code — registration, hours, leave and welfareOne registration for establishments with 10 or more workers. Eight hours a day, 48 hours a week, overtime at double rate, annual leave of one day for every 20 days, and welfare facilities by size.OSH Code, 2020How annual leave with wages is earnedOne day of leave for every 20 days worked, once 180 days are worked in the calendar year. Carry forward up to 30 days, encashment at year end and on leaving.OSH Code, 2020Factories — licence, safety committee and hazardous processesA factory is premises with 20 or more workers using power, or 40 or more without power. It needs a licence under the OSH Code, plus safety and health measures.Special categories of workersContract labour under the OSH CodeContractors employing 50 or more workers need a licence. Principal employers ensure wages and welfare, and contract labour in core activities is restricted.Special categories of workersInter-State migrant workersEstablishments with 10 or more inter-State migrant workers keep records, give a journey allowance once a year, and provide portability of ration and benefits.Special categories of workersBuilding and other construction workersConstruction employers with 10 or more workers register, follow safety norms, pay the welfare cess, and help workers register with the State BOCW board.Special categories of workersPlantation workersPlantations above the size and worker threshold in the OSH Code must provide housing, medical facilities, creches, recreation and education for workers' children.Special categories of workersWorkers in minesMines are covered by the OSH Code and the mines regulations administered by DGMS. They have stricter limits on hours, underground work and medical examination.Special categories of workersBeedi and cigar workersBeedi and cigar work, including work given out to home-workers, needs a licence and records. Workers get welfare through the Labour Welfare Organisation.Special categories of workersSales promotion employeesSales promotion employees are ‘employees’ under the Codes. They get an appointment letter, wage slips, leave and gratuity like other employees.Special categories of workersWorking journalists and newspaper employeesWorking journalists, including those in electronic and digital media, are covered by the OSH Code. Wage boards and the special terms continue as notified.Special categories of workersAudio-visual workers (film and digital production)Persons engaged in audio-visual production, as artists or crew, are covered. Each needs a written agreement, registered as required, with wages and social security.Special categories of workersMotor transport and dock workersMotor transport undertakings with 10 or more workers, and dock work, have special provisions on hours, rest, safety and welfare in the OSH Code.Special categories of workersFixed-term employmentA fixed-term employee gets the same hours, wages and benefits as a permanent employee doing the same work, and gratuity in proportion to service.Women at workPOSH Act — Internal Committee, complaints and annual reportEvery workplace with 10 or more employees constitutes an Internal Committee, handles complaints within 90 days, and files an annual report with the District Officer.Women at workWomen at work — night shifts and equal opportunityWomen may work in all establishments, including at night, with their consent and with the safety, holiday and transport conditions the appropriate government sets.Gig & platform workersGig workers, platform workers and aggregatorsThe Code on Social Security covers gig and platform workers for the first time. Aggregators contribute 1–2% of annual turnover, capped at 5% of payouts to these workers, to a social security fund.Government schemes for workerse-Shram — registration for unorganised workersFree registration on the national database of unorganised workers, with a Universal Account Number. It also gives access to linked Central schemes.Government schemes for workersPM Shram Yogi Maan-dhan (PM-SYM) — pension for unorganised workersA voluntary pension scheme for unorganised workers aged 18–40 earning up to ₹15,000 a month. It assures ₹3,000 a month from age 60, and the government matches the worker's contribution.Government schemes for workersPMJJBY, PMSBY and Atal Pension YojanaLow-cost life cover (₹2 lakh for ₹436 a year), accident cover (₹2 lakh for ₹20 a year), and a guaranteed pension of ₹1,000–₹5,000 under APY, through any bank.Government schemes for workersAyushman Bharat PM-JAY — health coverHospital cover of ₹5 lakh per family per year for eligible families. It extends to all senior citizens aged 70 and above, and to platform workers registered on e-Shram.Government schemes for workersPM Vishwakarma and PM SVANidhiPM Vishwakarma supports artisans in 18 traditional trades with training, toolkits and collateral-free loans. PM SVANidhi gives street vendors working-capital loans.Government schemes for workersState welfare boards for workersBuilding workers' boards, labour welfare funds and State unorganised-worker boards run schemes for education, marriage, maternity, accident, pension and housing. The benefits differ by State.State lawsProfessional tax — States and limitsProfessional tax is a State tax on employment, capped at ₹2,500 a year by Article 276 of the Constitution. The employer deducts it from salary and pays the State.State lawsLabour welfare fund — States and contributionSeveral States collect small employee and employer contributions, usually in June and December, for workers' welfare boards.State lawsShops and establishments ActsEach State's Shops and Establishments Act covers registration, opening hours, weekly holidays, leave and the employment of women at night for shops, offices and commercial establishments.State lawsAppropriate government — Centre or State?Whether the Central or the State Government is the appropriate government decides which Rules, forms, minimum wages and inspectors apply. It depends on who runs or controls the establishment.Code on Social Security, 2020Employment information and monitoring — reporting vacancies (SS Code, Chapter XIII)The Employment Exchanges (CNV) Act is repealed. Under s. 139 of the Code on Social Security, employers report vacancies to the notified career centre before filling them, and file a yearly employment information return.Special categories of workersLabour dues in insolvency — workmen, employees, PF and gratuityIn CIRP and liquidation, workmen's and employees' claims, PF, pension and gratuity dues, and statutory dues to EPFO and ESIC need careful computation and treatment under the IBC and the Labour Codes.Special categories of workersActuarial valuation inputs under the Labour CodesThe 50% wage rule, gratuity for fixed-term employees and the new leave encashment rules change the data actuaries need for gratuity and leave valuations.Other labour lawsApprentices Act — engaging apprenticesEstablishments with 30 or more workers must engage apprentices at 2.5% to 15% of their workforce, including contract workers, and pay at least the prescribed stipend.Other labour lawsChild and adolescent labourNo child below 14 may work in any occupation or process, except helping the family after school hours in non-hazardous work. Adolescents of 14–18 may not work in hazardous occupations.Other labour lawsEmployee data and the DPDP Act, 2023Employers may process employee personal data for employment purposes. They must keep it secure, use it only as needed, and tell employees how it is used.Returns & compliance calendarLabour law compliance calendarMonthly, quarterly, half-yearly and annual due dates for wages, PF, ESIC, PT, LWF, vacancy reporting and the employment information return, the OSH annual return, the POSH report and bonus.Returns & compliance calendarUnified annual return under the OSH CodeInstead of separate annual returns under many old laws, one electronic annual return gives the year's data on employees, wages, leave, bonus, maternity, accidents, contract labour and welfare.Returns & compliance calendarRegisters to keep under the Labour CodesAn employee register, a wage register, attendance and overtime, leave, an accident register, an advance and deduction register, a bonus register, a contract labour register and a migrant workers register, kept electronically or on paper.
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