New labour codes define ‘wages’ — How this impacts your basic salary, pension, gratuity and EPF benefits, explained

The Indian government on 21 November consolidated 29 Labour Laws into four comprehensive Labour Codes, namely — the Code on Wages (2019), the Industrial Relations Code (2020), the Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020). According to Sajai Singh, Partner at JSA Advocates & Solicitors, “Under the Code, “wages” now include basic pay; dearness allowance; and retaining allowance (if any). He added that since the code now limits the proportion of excluded components, if these exceed 50% of the employee’s total remuneration, they will be added back to the “wages” category. Read more

New Labour Codes may reduce take-home pay for some employees: Here’s why

 India’s new Labour Codes are estimated to directly affect employees’ take-home pay, with a revised definition of wages likely to increase statutory deductions and reduce monthly in-hand salaries for many. According to Preetha S, Partner at JSA Advocates & Solicitors, the new wage definition will directly influence PF and gratuity calculations and will require employers to proactively review existing salary structures. She notes that any revisions may also involve consent or notification requirements before implementation. While the Codes have been notified, she emphasises that their granular application depends on accompanying rules that are yet to be issued, placing employers in a “wait-and-watch” phase while they prepare internal policies for eventual compliance. Read more

Will your income tax outgo change under the new Labour Codes

As India moves toward implementing the Four Labour Codes, the new framework will directly affect taxable income, monthly TDS and payroll calculations. The revised wage definition and overtime rules will change how much of an employee’s earnings fall under the tax net. According to Preetha S, Partner at JSA Advocates & Solicitors, the new wage definition “demands a proactive review of existing salary structures for optimal compliance and cost efficiency,” but any change “will require employers to assess consent or notification requirements” before roll-out. She adds that granular implementation depends on detailed rules still awaited from the Centre and states. Read more

Why the EPF Act Still Exists Despite New Labour Codes: Government Yet to Notify Key Clause

As it turns out, although the government has notified the Social Security Code, a crucial clause that would repeal the EPF Act has not yet been enforced. This is why the decades-old EPF Act remains valid. Sonakshi Das, Partner at JSA Advocates & Solicitors, noted that a significant portion of the Social Security Code’s practical implementation depends on notifications that are still pending. She added that employees and employers must stay alert to new government circulars, especially those related to revised PF schemes, contribution rules operational procedures, new pension frameworks. Until these notifications are released, the EPF Act will continue to operate alongside the newly notified Social Security Code. Read more

New labour laws implementation date: From when will these new rules come into effect, benefits, eligibility criteria

The government has announced four labour codes – the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020. Sajai Singh, Partner – JSA Advocates & Solicitors, says, “Under the new labour codes in India, “fixed-term employees” are those employees engaged through a written employment contract for a specified, limited duration. Such employees must be treated on par with permanent employees in matters relating to working hours, wages, allowances, and other benefits, provided they perform the same or a similar nature of work. Additionally, fixed-term employees are entitled to proportionate employee benefits that are otherwise available to permanent employees, based on the period of service they have rendered, even if that period does not meet the qualifying threshold ordinarily required for such benefits. Further, under the Industrial Relations Code, 2020, a fixed-term employee becomes eligible for gratuity upon completing one year of service under the contract. Therefore, employees engaged by an establishment for a predetermined, limited period, where their employment contract naturally expires on a specified date, will fall within the definition of fixed-term employees.” Read more

EPF Act remains operational despite being repealed in new labour laws – Here’s why

The EPF Act continues to operate outside the new Code on Social Security (CSS), even as the Centre has notified all other major provisions of the revamped labour law. “Since operational implementation of a majority of these effective sections relating to provident fund are linked to notifications which are yet to be released, employers must watch out for Centre’s notifications on appropriate schemes and related aspects for social security contributions which will replace the extant schemes operational thus far,” said Sonakshi Das, Partner, JSA Advocates and Solicitors. Read more

How DPDP will rewrite growth playbooks for Indian brands

India’s Digital Personal Data Protection (DPDP) Act 2025 has long been positioned as a consumer-rights legislation. But as the enforcement cycle begins, its most profound impact may not be on tech firms or policy circles but may be on the country’s marketing ecosystem. With most app SDKs still firing before consent, a clear violation under the Act, the industry faces nearly ₹250 crore in potential exposure. Reduced data pipelines, diminished attribution, collapsing lookalike models, and increased CAC for businesses with few first-party ecosystems are all immediately apparent consequences of the ripple effect. Legal experts echo this transformation. Yajas Setlur, Partner at JSA Advocates & Solicitors, notes that SDKs can no longer trigger before consent, which will “break many legacy workflows.” But he stresses that early compliance is a competitive advantage, not a cost. As Indian consumers become more privacy-aware, they will “reward companies they can trust with their data and loyalty.” In his view, the initial pain is the price of a healthier, more accountable ecosystem. Read more

India’s new labour codes: Reforms may not prevent layoffs, experts warn

Experts warn that India’s new labour codes, hailed as “revolutionary” and “timely”, may not guarantee job security. Storyboard18 spoke to industry specialists who caution that the reforms do not necessarily protect employees from layoffs. The experts said that the reforms could drive up companies’ operational costs, which in turn may affect overall employment levels. Gerald Manoharan, Partner, JSA Advocates & Solicitors, described the new labour codes as a “double-edged sword” regarding job security. Read more

From margins to mainstream: Indian gig workers finally get formal safety net

The newly notified labour codes represent a transformative and historic reform for India’s gig economy, finally bringing this vast segment of workers under formal regulatory recognition and social security. “For the first time, this rapidly expanding segment of the workforce, traditionally excluded from the conventional employer-employee relationship, gains legislative recognition and a foundational layer of social security,” Preetha S, Partner, JSA Advocates & Solicitors, said. Read more

The story has also appeared in The Week, Business Standard, Hans India, The Telegraph, and more. 

Global banks pour into India as regulators open up to foreign money

Global banks are buying up stakes in Indian lenders as the country’s government and regulators become increasingly relaxed about foreign entities acquiring significant holdings. Since the start of the year, India’s financial sector has had $8bn worth of deals from foreign companies, up from $2.3bn last year and $1.4bn in 2023, according to Dealogic data. Vikram Raghani, senior partner at JSA, an Indian law firm that has been involved in recent banking deals, said previous mergers and acquisitions might have involved lenders that were “in some kind of stress”. Read more

India’s gaming reset: With RMG dismantled, can the country lead in e-sports and casual gaming?

On July 7, Kavin Bharti Mittal, founder and CEO of tech startup Hike, shared a vision on LinkedIn of a “gaming nation” where players, not just platforms, own the value they create. “This is our moonshot: creating an online nation where every participant owns a piece of what they help build. Where attention transforms into tangible value. Where the network effects benefit everyone, not just the platform owners,” he wrote. “The ban will fuel the illicit gaming sector, boosting the growth of offshore betting platforms. The government is already struggling to restrict such platforms from being accessed by Indian users. The ban will create an additional burden,” says Probir Roy Chowdhury, partner, JSA Advocates & Solicitors. Read more

Labour reforms timely development, experts say

The latest labour reforms area timely development for India as the country witnesses rapid advancements in Al while continuing to prioritise and protect the interests of its Workforce, experts said.  Sajai Singh, Partner |SA Advocates and Solicitors, said, “Allowing women to Work on night shifts in various sectors and recognition of gig Workers and their rights stand out as progressive moves that recognise the times we live and work in. Read more

The story has also appeared in The Pioneer, News18, The Week, and more.

Disclaimer & Confirmation


As per the rules of the Bar Council of India, we are not permitted to solicit work and advertise. By clicking on the “I AGREE” button below, you acknowledge the following:

If you have any legal issues, you, in all cases, must seek independent legal advice.

We use cookies to enhance your experience. By continuing to visit this website you agree to our use of cookies.