India’s New Labour Law

1. What’s Actually Changing — The Big Picture On 21 November 2025 , India implemented four new labour codes : Code on Wages (2019) Industrial Relations Code (2020) Code on Social Security (2020) Occupational Safety, Health and Working Conditions (OSHWC) Code (2020)  These codes replace 29 older central labour laws , consolidating and simplifying decades of fragmented labour regulation.  The government frames these reforms as creating a “future-ready workforce” and making compliance easier for businesses.  2. Key Features of the New Labour Codes Here are the major changes and how they could impact workers and employers: Wages and Compensation A national floor wage will be set, meaning there’s a statutory minimum below which wages cannot fall.  The definition of “wages” has been standardized: it includes basic pay, dearness allowance, and retaining allowance .  At least 50% of compensation must be basic pay , limiting how...