The Government of India is set to roll out new labour codes, replacing 29 existing labour laws, in a major reform aimed at streamlining employment regulations across the country.
As per the new rules, the basic salary of employees must constitute at least 50 percent of the total pay. This change is expected to increase contributions towards Provident Fund (PF) and gratuity, strengthening long-term financial security for workers.
The labour codes also focus on improving working conditions, ensuring social security benefits, and bringing uniformity in labour laws across industries. However, experts suggest that the restructuring of salary components may impact take-home pay for some employees.
The implementation of these reforms marks a significant step towards modernizing India’s labour system while balancing employee welfare and industrial growth.
