The Ministry of Labour and Employment has released draft rules under the four labour codes, the Code on Wages, Code on Social Security, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code, inviting public and stakeholder feedback within a 30-45 days. The draft rules give clarity on certain provisions such as calculation of wages, gratuity payments and composition of National Social Security Board for gig and platform workers.
The codes, which consolidate 29 existing central labour laws and were enforced from November 21 after parliamentary approval five years ago, introduce several significant changes aimed at streamlining regulations and extending social security coverage.
The draft rules prescribe a standard 48-hour working week, with separate provisions to be notified for daily working hours, rest intervals, and spread-over time. All unorganised sector workers above the age of 16 will require Aadhaar-linked registration.
How Your Take-Home Salary and Benefits Could Change
Reiterating the uniform definition of wages across the codes, the ministry stated that wages encompass all remuneration, including salaries and allowances. Basic pay, dearness allowance, and retaining allowance form the core components. If other allowances exceed 50% of total remuneration, the excess portion will be treated as wages. Performance based incentives, Employee Stock Option Plans (ESOPs), variable part of the component or reimbursement-based payments to the employee shall not be part of the wages, the government said.
A dedicated National Social Security Board for gig and platform workers has been proposed, comprising members from the Lok Sabha and Rajya Sabha, representatives of unorganised workers and employers, state governments, and seven central nominees representing scheduled castes, scheduled tribes, women, and minorities.
The ministry has said that during the transition phase, existing rules under the old laws will continue to apply until the new rules are finalised and notified.
New Gratuity Norms
On gratuity, the ministry has said that the new provisions will apply prospectively from November 21, 2025. The Code on Social Security rules clears that gratuity will be calculated on ‘wages’ last drawn, excluding components such as annual performance-linked pay, reimbursement of medical expenses, stock options, crèche allowance, telephone and internet reimbursement and meal vouchers.
The draft rules also lay down criteria for fixing minimum wages on a daily basis. These include provisions for a standard working-class family of four (worker, spouse, and two children), a daily calorie intake of 2,700 per person, 66 metres of cloth per year per family, housing rent equivalent to 10% of food and clothing expenditure, 20% allocation for fuel, electricity, and miscellaneous items, and 25% for children’s education, medical needs, recreation, and contingencies.
The government is expected to incorporate feedback before notifying the final rules, marking a key step toward full implementation of the reformed labour framework.