The Union Government completed the rollout of the four Labour Codes through over 30 gazette notifications issued on May 8 and 9, 2026. According to officials, the notified rules carried only marginal changes from the draft versions circulated for public feedback in December last year.
The government had set Nov. 21, 2025, as the date for enforcing the four Labour Codes. Following the notification of the Rules, the Codes are set to replace 29 separate labour laws dealing with issues such as salaries, social welfare, working hours, pension benefits and union rights.
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The new framework will usher in several significant provisions, including a national minimum floor wage determined jointly by the Centre, states and an advisory board. It also mandates an eight-hour workday capped at 48 hours a week, requires employers to issue wage slips, and establishes a social security fund for gig and unorganised sector workers, with states likely to adopt similar rules.
The final Code on Wages (Central) Rules, 2025, omits a key provision that was included in the draft rules: the methodology for fixing minimum wages. The Centre said the parameters would be issued later through separate orders, prompting concerns that the decision may lead to lower wage benchmarks and greater disparities across states for similar categories of workers.
The earlier draft framework had incorporated an established formula for determining minimum wages. It was based on norms including 2,700 calories of daily nutrition per consumption unit, yearly clothing requirements of 66 metres for a four-member working-class household, and rental expenses calculated at 10% of food and apparel costs.
It further provided for fuel, electricity and miscellaneous expenses at 20% of the wage floor, along with an additional 25% for education, medical treatment, recreation and contingencies. The approach stemmed from the Supreme Court’s landmark Reptakos Brett verdict of 1991 and the 1957 recommendations of the 15th Indian Labour Conference.
The decision to exclude the minimum wage fixation formula from the final wage rules may lead to workers receiving lower pay than they otherwise could, as wages remain a crucial factor in collective bargaining processes.
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The revised wage framework also states that the central government will fix a floor wage after considering living standards, housing, clothing and any additional criteria it considers necessary.
As per Section 9 of the Code on Wages, 2019, the Centre can prescribe different floor wage levels across regions. Since states will not be permitted to set minimum wages below this benchmark, the measure is likely to come under sharp focus against the backdrop of recent worker protests in industrial belts across the country.
Under the new rules, employees receiving daily wages will have a normal workday capped at eight hours. For those on alternative wage arrangements, the working schedule will be structured to ensure the weekly limit of 48 hours is not breached. Provisions related to rest periods will be dealt with under the Occupational Safety, Health and Working Conditions Code, 2020.
By fixing a 48-hour weekly ceiling for non-daily wage employees, the rules are likely to encourage more flexible work patterns across workplaces, especially in industries where hybrid working and remote operations have become common.
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