2026
FOCUS ENABLING PVT. LTD.
NEW LABOUR CODE
HANDOUTS
New Labour CODES
The New Labour Codes represent a comprehensive reform of
India’s labour laws, aimed at simplifying compliance while ensuring
fair wages, social security, workplace safety, and industrial
harmony. By consolidating 29 existing labour laws into four major
codes—Code on Wages, 2019; Code on Social Security, 2020;
Industrial Relations Code, 2020; and Occupational Safety, Health
and Working Conditions Code, 2020—the framework promotes
transparency, timely payment of wages, equal remuneration,
enhanced employee welfare, and ease of doing business.
These codes are implemented with effect from 21st November
2025. The implementation actions and an overview are discussed
in this handouts, and we hope it will be useful to industrialists and
HR professionals working with industries.
Dr. Nimesh Rajput Contact on 9712945909
Wages Defination
FOCUS ENABLING PVT. LTD.
NEW LABOUR CODE
HANDOUTS
Salary / Wages Bifurcation Rule
50% of CTC and Minimum Wages
(as notified by State Govt.)
whichever is higher
Basic + DA + Retaining Allowance
Existing Basic should not be Reduced
Basis Wages should not be less than Minimum
Wages
1. Wages Bifurcation
(As per Definition of Wages)
Wages must be minimum 50% of CTC
Definition of Wages:
Wages = Basic + DA + Retaining Allowance
Plus statutory components considered for compliance:
Employer’s PF Contribution
Bonus
Gratuity
Care to be Taken:
1. Basic Wages should not be less than applicable Minimum Wages.
2. No employee’s Basic wages should be reduced if:
Existing Basic is more than Minimum Wages, or
Existing Basic is already 50% or more of CTC.
3. Salary Restructuring Letter must be issued to all employees.
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NEW LABOUR CODE
HANDOUTS
2. Bonus Payment
Bonus to be calculated on new definition of wages.
Bonus calculation options:
On Maximum of Minimum Wages, or (check in case change by
Appropriate govt. they have power to change remove or increase such
limit)
On Actual Basic Wages, if management opts to pay on actual wages.
3. Equal Remuneration
1. Ensure equal wages for equal work, irrespective of gender.
Prepare Job Descriptions (JD).
Match JD responsibilities with CTC and salary structure.
2. No reduction in employee salary is permitted under the guise of restructuring.
3. Monthly wages/salary payment must be made on or before 7th of every month.
4. In case of termination, Full & Final Settlement must be paid within 2 days from the date of
relieving.
II. Code on Social III . Equal
Security
1. EPF & ESIC Applicability
Remuneration
1. Ensure equal wages for equal work,
Applicability to be checked as per new
definition of wages: irrespective of gender.
EPF: Applicable up to ₹15,000 wages Prepare Job Descriptions (JD).
Match JD responsibilities with
ESIC: Applicable up to ₹21,000 wages CTC and salary structure.
(above this – exempted).
Back to School Picnic:
III . Payment of Wages Our picnic is scheduled for August 30th
1. No reduction in employee salary is permitted from
under11:00 AM to
the guise of1:00 PM. Bring a lunch
restructuring.
Monthly wages/salary payment must be made and join
on us
or for games
before 7th and fun. It’s a great
of every
month. chance to meet other families and enjoy
the outdoors.
In case of termination, Full & Final Settlement must be paid within 2 days
from the date of relieving.
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FOCUS ENABLING PVT. LTD.
NEW LABOUR CODE
HANDOUTS
IV. ESIC / PF Applicability
Applicability to be checked as per new definition of wages:
EPF: Applicable up to ₹15,000 wages (above this – exempted).
ESIC: Applicable up to ₹21,000 wages (above this – exempted).
Employees’ Compensation Applicable where ESIC is not applicable.
V. Gratuity Compliance
Gratuity Nomination Form to be obtained from all employees.
Acknowledgement to be issued to employees for submission.
VI. Maternity Benefits
Female employee is eligible for 26 weeks maternity leave if she has worked minimum 80 days
before pregnancy.
Maternity leave payment to be made at wages rate.
Additional Pregnancy Bonus of ₹3,500 to be paid
VII. Employment Information & Vacancy Notification
All vacancy-related information must be notified to the District Employment Department.
(CNV form)
VIII. Fixed Term Employment
Fixed Term Employees are eligible for Gratuity on completion of service term after minimum 1
year of service. Means The Term of Contract if It is 3 years Gratuity applicable on completion
of 3 years service or 1 Year (matter of Interpretation). In case absence of Contract they will
treated as regular employees.
IX. Industrial Relations (IR) Code
1. Grievance Redressal Committee
Applicable to establishments with 20 or more employees.
Committee structure:
Equal representation from Workers and Management.
Chairperson to change every year, alternately between Workers and Management.
Adequate female representation if women employees are working.
2. Works Committee
Applicable where 100 or more employees are working.
Equal representation from Workers and Management (similar to Grievance Committee).
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FOCUS ENABLING PVT. LTD.
NEW LABOUR CODE
HANDOUTS
Ix. Occupational Safety, Health &
Working Conditions Code, 2020
1. Appointment Letters
Appointment letters must be issued to all employees as per prescribed format.
2. Safety Committee
Mandatory for establishments with 250 or more employees.
3. Occupational Health Check-up
Compulsory health check-up for employees aged 45 years and above.
4. Crèche Facility
Establishments having 50 or more employees must arrange Crèche facilities at or near
the workplace. (permitted to use pool facility)
5. Strength 100 : Provide Canteen Facility
6. Strength 250 : Appointment of welfare officer
7. Strength 500 : Appointment Safety Officer Ambulance Room
[Link] 500 : Ambulance Room
Dr. nimesh Rajput had conducted a Session on New
Labour Code at Metoda GIDCAssociation , Rajkot
9712945909 P.5 Dr. Nimesh Rajput