Labour Codes FAQ in India: your questions answered

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This Labour Codes FAQ for India gives short answers on the four Labour Codes in force since 21 November 2025. It covers the 50% wage rule, gratuity, fixed-term staff, hours, leave, final pay, gig workers and state rules. The sources used are listed at the end of the page.

When did the Labour Codes come into force?

On 21 November 2025, when the government made the Code on Wages, the Industrial Relations Code, the Code on Social Security and the OSH Code effective, replacing 29 central laws (PIB).

What is the 50% rule?

If allowances and other listed payments exceed 50% of total remuneration, the excess is added to wages. See the wage rule.

Will my in-hand salary fall?

Not automatically. The Codes change the base for statutory items; the employer decides the structure. See take-home pay.

Is gratuity now payable after one year?

For fixed-term employees, yes, on completing one year of service under the contract. Regular employees generally still need five years. See gratuity.

Is a bond or notice period affected?

We found no resignation notice period in the Ministry's summaries of the Codes; it comes from your contract or standing orders. See notice period.

How many hours can I be made to work?

Eight a day and 48 a week as the standard; overtime needs consent and is paid at twice the normal rate. See hours.

How is leave earned?

One day for every 20 days worked, after 180 days in a calendar year, with carry-forward of 30 days. See leave.

When must final pay be released?

Wages within two working days of leaving; gratuity within 30 days of becoming payable. See F&F.

Are gig workers covered?

The Code defines them and allows schemes; aggregators contribute 1% to 2% of turnover from a date to be notified. See gig workers.

Is an appointment letter mandatory?

Yes, for every employee. See appointment letters.

Do state rules differ?

They can. See rules status.

Where can I read the primary text?

labour.gov.in for code texts, FAQs and the handbook, and the Gazette of India for notifications.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.