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New Labour Code transition

The four Labour Codes change how wages are defined, how records are kept and how employers register and report. We plan and manage your transition end to end.

New Labour Code Transition
Professional sign-offon every deliverable
In force since21 November 2025
Central rulesNotified May 2026
State rulesBeing notified state by state
Biggest changeUniform definition of wages (50% rule)
QUICK ANSWER

What does the Labour Code transition involve?

The Labour Code transition is the process of moving an employer's wages, policies, registrations, records and returns from the 29 repealed central labour laws to the four Labour Codes, which took effect on 21 November 2025. It includes aligning salaries to the new definition of wages, updating HR policies and letters, and migrating to Code-based filings as states notify their rules.

OVERVIEW

How Paalan handles New Labour Code Transition

The Code on Wages, the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code consolidate 29 central labour laws. The Codes are in force, and states are notifying their own rules on staggered dates, so employers need to run legacy and Code-based compliance side by side for a while.

Paalan assesses the impact on your organisation, rewrites your HR policies and documents, restructures salaries where needed, and moves each of your establishments to the new registration and return regime as its state notifies the rules.

SERVICES UNDER NEW LABOUR CODE TRANSITION

Explore our New Labour Code Transition services

Each area has its own dedicated page with the full scope, due dates and FAQs.

SCOPE OF SERVICES

What's included

Everything we take ownership of under New Labour Code Transition.

01

Impact assessment

Assessment of how each Code affects your wages, policies, registrations and costs.

02

HR policy modification

Policies, standing orders and appointment letters aligned with the Codes.

03

Salary restructuring

Wage structures aligned to the new definition of wages, with cost impact modelled.

04

State-wise tracker

Tracking of state rule notifications and applicable dates for your locations.

05

Registrations & returns

Migration to single registration and consolidated returns as states go live.

06

Leadership & HR briefings

Briefings for management and HR teams on what changes and when.

WHO NEEDS IT

Who needs New Labour Code Transition?

  • Every employer in India
  • Companies with allowance-heavy salary structures
  • Employers with fixed-term or contract workforces
  • Industrial establishments with 300+ workers (standing orders)
  • Multi-state employers tracking different state timelines
Check what applies to you
KEY FEATURES

Why clients choose Paalan for New Labour Code Transition

Clear, dated transition roadmap
Gratuity, PF and bonus impact quantified
Policies and letters redrafted
Legacy and Code tracks run in parallel
State notifications monitored continuously
Professional review on every recommendation
KEY DUE DATES

New Labour Code Transition compliance calendar

Typical statutory timelines. Exact dates vary by state and notification, we maintain the calendar for each of your locations.

ActivityFrequencyDue date
Impact assessmentOne-timeAs early as possible
Salary structure changesOne-timeBefore the next pay cycle revision
Policy and letter updatesOne-timeAligned with state rule notification
Migration to Code filingsState by stateAs each state notifies its rules
RISK OF NON-COMPLIANCE

What happens if New Labour Code Transition is not managed well?

Understated liabilities

Gratuity, PF and bonus may be under-provided if the new definition of wages is ignored.

Outdated policies

Policies based on repealed laws can conflict with new entitlements.

Higher penalties

The Codes increase penalties for many offences.

HOW IT WORKS

Our process

Step 1

Assess

We study your entities, locations, headcount and existing records to map every obligation that applies.

Step 2

Plan

A location-wise compliance calendar and responsibility matrix, agreed with your team.

Step 3

Execute

Registrations, registers, returns and filings handled on time, every time, reviewed by a professional.

Step 4

Report

Regular status reports and an evidence file ready for auditors, inspectors and management.

FAQS

New Labour Code Transition: frequently asked questions

Can't find your answer? Our specialists are a message away.

Pricing on request

Fees depend on your entities, locations and headcount. Share your requirement for a tailored proposal.

Request pricing
Are the Labour Codes in force?

Yes. The four Codes are in force; states are notifying their own rules on different dates, and legacy rules continue to operate until then. Contact us for the current position in your states.

What is the biggest change for employers?

For most employers, the uniform definition of wages, under which basic pay and certain allowances must make up at least 50% of total remuneration, which affects PF, gratuity and bonus calculations.

Do we need to change our HR policies?

Most organisations will need to update policies, appointment letters and standing orders on working hours, leave, fixed-term employment, gratuity and more.

Have all states notified their rules?

Not yet. The Centre notified its rules in May 2026 and states are notifying theirs on staggered dates; the Labour Secretary indicated states and UTs may complete notification by 31 October 2026. We track the position for your states.

What happens to registrations under old laws?

Existing registrations generally continue under savings provisions; the Codes introduce a single registration, and migration happens as states operationalise it.

Is gratuity now payable to fixed-term employees after one year?

Yes. Under the Code on Social Security, fixed-term employees are eligible for gratuity on a pro-rata basis after one year of continuous service.

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Need help with New Labour Code Transition?

Tell us about your organisation and a Paalan professional will send you a clear, tailored proposal, usually within one working day.

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