INDUSTRY
Final rules for Code on Wages and Industrial Relations Code notified
- IBJ Bureau
- May 09, 2026
The Union government has notified the final rules for the Code on Wages and the Industrial Relations Code.
The Code on Wages covers the norms to fix and revise minimum wages and variable dearness allowance (VDA), which will be revised twice a year based on the Consumer Price Index.
It paves the way for the Central government to set a statutory floor wage to ensure a national minimum living standard.
The code retains the 8-hour workday and 48-hour weekly cap, while mandating overtime work pay at a minimum of double the normal wages.
Salaries must be released by the 7th of every month, and full and final settlements must be completed within two working days of an employee’s exit.
The Industrial Relations Code enables the setting up of a fund where employers contribute 15 days’ wages for every retrenched worker to support their training and re-employment.
The code provides finalised templates for mines, manufacturing and service sectors to standardise workers’ classification, leave norms and disciplinary procedures.
The code raises the threshold for establishments requiring prior government permission for layoffs, retrenchment or closure from 100 to 300 workers.
It also establishes a mechanism for recognising a negotiating workers’ union.
These rules primarily apply to sectors under the jurisdiction of the Central government, including banking, telecom, insurance, mines, major ports and Central public sector undertakings.
For other establishments, individual State governments are expected to finalise their own rules based on this framework.
The Code on Wages, Industrial Relations Code, Social Security Code and Occupational Safety, Health and Working Conditions Code had come into force on November 21, 2025.
These codes have consolidated 29 Central labour laws to modernise labour regulations and simplify compliance.
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