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11-05-2026
Bureau Report
NEW DELHI: The Centre on Friday operationalized key provisions under two major labour reforms, the Code on Wages, 2019 and the Code on Social Security, 2020 in a move aimed at expanding formal social protection while standardizing wage-related regulations, including for gig and platform workers.
The government notified the Code on Wages (Central) Rules, 2026 yesterday, bringing together provisions relating to minimum wages, payment of wages, bonus and equal remuneration under a unified framework. The move comes as the Centre pushes ahead with implementation of the four labour codes that seek to consolidate 29 central labour laws.
The wage rules prescribe an eight-hour normal working day and cap weekly working hours at 48 hours. Minimum wages will be calculated on a daily basis, while hourly wages will be derived by dividing the daily wage by eight and monthly wages by multiplying the daily wage by 26.
The Centre has also mandated revision of variable dearness allowance (VDA) twice a year before April 1 and October 1 based on consumer price index data published by the Labour Bureau.
The rules formalize digital compliance systems, allowing notices, claims, wage records and filings to be maintained electronically through portals, mobile applications and websites. The rules mandate that employers engaging workers through contractors will remain responsible for payment of wages and bonus in case contractors default.
The social security code, meanwhile, is expected to pave the way for creation of welfare schemes for gig and platform workers, including provisions related to life and disability cover, accident insurance, health and maternity benefits and old-age protection. Food delivery workers, ride-hailing drivers and e-commerce logistics workers are among those likely to come under the ambit of the framework.
The code also provides for creation of social security funds that may be financed through contributions from aggregators, governments and other prescribed sources. Industry executives and labour experts have said the framework could mark the first formal attempt to build a nationwide safety net for India’s platform economy workforce.
Together, the two codes are expected to reshape the country’s labour architecture by bringing greater uniformity in wage calculations, digitizing compliance and widening the scope of worker protection beyond the traditional employer-employee relationship.
The Centre had circulated draft wage rules for stakeholder comments in December 2025 and said suggestions from industry bodies and worker representatives were considered before finalization.
“It is equally important to recognize that these Central Rules will largely apply to establishments where the Central Government is the ‘appropriate government’ such as telecom, banking and insurance, mines, oil fields, major ports, air transport, along with central public sector undertakings and their contractors,” says Puneet Gupta, Partner, People Advisory Services -Tax, EY India. He added that the final Central Rules will also be basis for states to finalize and implement state specific rules under the labour codes.
India has implemented four new labour codes, including the Code on Wages, 2019, effective from November 21, 2025, to overhaul 29 old laws. Key changes include a mandatory 50% basic salary cap, universal minimum wages, uniform wage definitions and stricter timelines for wage payments, impacting take-home pay and increasing employer social security contributions.
