The four Labour Codes have applied since 21 Nov 2025. Here is what a small employer does now.

01What counts as wages

a 50% floor

because since 21 Nov 2025, wages are all pay except the listed exclusions (such as HRA, conveyance, overtime, bonus and commission), so basic, DA and special allowance count; exclusions, including the employer's PF, are added back where they pass half of total remuneration. PF, ESI and gratuity are worked out on this figure.

02Monthly wages paid by

the 7th of the next month

because the Code on Wages, s.17(1) now sets pay days for every employee, not only those under the old wage limit.

03Minimum wage

every employee

because the Code on Wages, s.5 applies it to every employee, not only the scheduled employments of the old Act; office and shop staff are now covered. Rates are set by each state.

04Deduction for absence

days required to work

because the Code on Wages, s.20 limits a deduction for absence to the share of the month's wages that the days absent bear to the days the employee was required to work. A fixed divisor can over-deduct in a long month.

05Wage slip

from the first employee

because the Code on Wages, s.50 makes a wage slip every pay period a legal duty, not good practice. The Central Rules of 8 May 2026 prescribe a form for central-sphere establishments; your state may prescribe its own.

06Final wages on exit

2 working days

because the Code on Wages, s.17(2) requires wages due on a resignation, removal, dismissal or retrenchment within 2 working days of the last day.

07Deductions from wages

within 50%

because only the deductions s.18 lists may be made, all together within 50% of the wages in a period, and a deduction for damage or loss needs the employee to be heard first.

08Appointment letters

at 10 or more workers

because the OSH Code, s.6(1)(f) requires a letter for each employee once you have 10 or more workers; people already employed were due theirs by 21 Feb 2026. Below 10 it is good practice.

09ESI coverage

Code wages up to ₹21,000

because since 21 Nov 2025 ESI coverage and contributions are tested on wages as the Code defines them, not on gross pay.

10EPF wage ceiling

₹25,000 from 17 Sep 2026

because it was ₹15,000 until 16 Sep 2026. September 2026 is split on calendar days between the two.

11Gratuity for fixed-term staff

pro rata after one year

because under the Code on Social Security, s.53 a fixed-term employee qualifies after one year of continuous service; others still need 5 years.

12Annual leave

after 180 days worked

because under the OSH Code, s.32 a worker who has worked 180 days or more in a calendar year earns 1 day of annual leave for every 20 days worked, and holidays falling between, just before or just after annual leave days are not counted as leave.