New Delhi: The Ministry of Labour and Employment on Wednesday moved closer to rolling out India’s long-awaited labour law reforms by pre-publishing draft rules under all four Labour Codes and inviting feedback from stakeholders, a step required to make the new legal framework fully operational. The government has set April 1, 2026 as the target date to enforce the Codes across the country in one phase, subject to completion of consultations and notification of final rules by both the Centre and the states.
The four Codes include the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020. While these laws lay down the broad statutory framework, the draft rules detail how provisions on wages, working hours, social security, safety standards and dispute resolution will function in practice. The ministry has allowed a 30-day window for comments on the Industrial Relations Code rules and 45 days for the remaining three Codes from the date of publication.
Labour is a concurrent subject under the Constitution, requiring both the Centre and states to notify rules for full enforcement. Officials said states are also in the process of formally publishing their respective draft rules, a necessary step before the new regime can take effect nationwide. Industry bodies welcomed the move, describing it as a signal of intent to move from legislation to implementation. “The release of the draft rules under the four Labour Codes marks a key step in operationalising India’s labour reforms,” said Chandrajit Banerjee, Director General of the Confederation of Indian Industry. He added that clearer implementation pathways would help industry prepare, simplify compliance and support growth while strengthening worker protections.
The pre-publication follows remarks made earlier this month by Union Labour and Employment Minister Mansukh Mandaviya, who had said the draft rules would be issued shortly. He noted that while draft rules had been circulated earlier by the Centre and states, those versions were dated and needed alignment with current economic and labour market realities. Mandaviya has also linked the reforms to the government’s goal of extending social security coverage to 100 crore workers by March 2026, up from 94 crore currently. Official data shows social security coverage has expanded from 19 per cent in 2015 to more than 64 per cent in 2025.
Among the most detailed provisions are those under the draft Code on Wages (Central) Rules, 2025. These spell out how minimum wages and floor wages will be fixed, calculated and revised. Minimum wages will be determined on a daily basis and converted into hourly and monthly rates using a standard formula based on the needs of a working-class family, including food, clothing, housing rent, fuel, electricity, education and medical expenses. The Central government will set a national floor wage, below which states cannot go, though states may prescribe higher wages depending on local conditions.
The draft rules also clarify the definition of wages, particularly how allowances are treated if they exceed 50 per cent of total remuneration. While bonuses, incentives and reimbursements are excluded from the wage definition, safeguards have been built in to prevent artificial lowering of basic pay. Total deductions in any wage period cannot exceed 50 per cent of wages, with excess amounts recoverable in subsequent periods.
Working hour norms remain capped at 48 hours a week, calculated on the basis of an eight-hour working day. The rules lay out payment for overtime, rest days and substituted rest days, and include specific provisions for night shifts, including work extending beyond midnight. These are relevant for sectors such as manufacturing, logistics, services and information technology, where round-the-clock operations are common. Women are permitted to work night shifts subject to consent and mandatory safety arrangements. A significant change under the Code on Wages is the removal of the distinction between scheduled and non-scheduled employment, extending coverage to all employees, including informal, contract and fixed-term workers. Workers aged 16 years and above are covered, bringing younger workers in the informal economy within the wage protection framework.
Parallel draft rules under the Code on Social Security provide for Aadhaar-linked registration of unorganised workers aged 16 and above, enabling portability of benefits across states and occupations. Fixed-term employees are entitled to the same wages and benefits as permanent workers doing similar work and will be eligible for gratuity after completing one year of service, a shift from earlier norms.
The draft framework also strengthens grievance redressal. It lays down procedures and timelines for claims related to underpayment, delayed wages, unpaid overtime or denial of bonus, along with formats for appeals. An Inspector-cum-facilitator system focuses on guidance and compliance, with fixed timelines for authorities to act on complaints and recovery proceedings.
Provisions giving effect to equal pay for equal work have been integrated, replacing the repealed Equal Remuneration Act. Employers will be required to maintain wage registers capturing gender and pay details, aiding scrutiny of discrimination. The definition of family for women employees has been expanded to include parents-in-law, affecting access to wage-linked benefits and social security.
The government has said feedback received during the consultation period will be reviewed before final rules are notified. Until then, existing rules under repealed labour laws will continue during the transition, with officials indicating that finalisation is aimed at providing clarity to employers and workers ahead of the next financial year.