Status update: All 4 Labour Codes have received Presidential assent. States are in the process of notifying rules. Begin your readiness now.

4 Labour codes. 1 compliant platform.

India’s 1st Payroll Software Built for the New Labour Codes

Integrate New Wage Code intelligence directly into payroll processing

India’s First Wage Code Comparison Engine

Instantly analyze and compare salary structures under existing laws vs. new wage code definitions— Know exactly how your payroll will change.

New Labour Code Registers & Returns

Access automated statutory registers and returns aligned with the newly introduced labour codes—ready for audit, inspection, and filing.

29

Central laws replaced

4

Labour Codes to comply with

1

Platform covering all four

45+

Years compliance expertise

The Four Labour Codes, explained

What each Code covers, what it replaces, and exactly how PionHR handles compliance for each one.

1.Code on Wages, 2019

Wages, minimum pay, bonus, and equal remuneration

Consolidates 4 acts

Replaces these acts

Minimum Wages Act, 1948
Payment of Wages Act, 1936
Payment of Bonus Act, 1965
Equal Remuneration Act, 1976

How PionHR handles this

  • Unified wage definition applied across OT, bonus & deduction calculations
  • State-wise minimum wages auto-applied per employee category
  • Payroll cycles aligned to daily, weekly & monthly wage periods
  • Wage register generation in the new prescribed formats
  • Equal remuneration tracking for gender pay compliance
Key changes your HR team needs to know
National floor wage

A minimum wage floor applies nationally. No state can set minimum wages below it — impacting multi-location employers.

Broader wage definition

Wages now include all remuneration components (except a specified exclusion list), directly impacting PF, bonus and OT computations.

Universal coverage

Minimum wage provisions now cover all employees across all industries — not just scheduled employments as before.

2.Code on Social Security, 2020

Provident fund, ESI, gratuity, maternity benefits, and gig workers

Consolidates 9 acts

Replaces these acts

EPF & MP Act, 1952
ESI Act, 1948
Gratuity Act, 1972
Maternity Benefit Act, 1961
Employees' Compensation Act
Employment Exchanges Act
Building Workers Welfare Cess Act
Unorganised Workers' Social Security Act
+ 1 more

How PionHR handles this

  • Automated PF & ESI contribution calculation and challan generation
  • Gratuity eligibility tracker with payout calculation on separation
  • Maternity benefit computation and leave management
  • Configurable gig & platform worker social security contribution logic
  • Centralised statutory filings and compliance calendar alerts
Key changes your HR team needs to know
Gig worker coverage

For the first time, gig and platform workers are entitled to social security benefits, funded by aggregators at a percentage of turnover.

Gratuity for fixed-term

Fixed-term employees are entitled to gratuity proportionately — the 5-year minimum service requirement no longer applies to them.

Enhanced maternity

Creche facilities are mandated for establishments with 50+ employees. Maternity benefits are extended to commissioning and adoptive mothers.

3.Industrial Relations Code, 2020

Hiring flexibility, separation management, and dispute resolution

Consolidates 3 acts

Replaces these acts

Industrial Disputes Act, 1947
Trade Unions Act, 1926
Industrial Employment (Standing Orders) Act, 1946

How PionHR handles this

  • Standing order digitisation with employee acknowledgement workflows
  • Separation management with notice period and exit compliance tracking
  • Automated full & final settlement with all statutory clearances
  • Fixed-term employment contract management and renewals
  • Retrenchment and layoff compliance documentation
Key changes your HR team needs to know
Hire & fire flexibility

Establishments with up to 300 workers (up from 100) can now retrench without government approval, changing workforce planning significantly.

Fixed-term employment formalised

Fixed-term employment is now formally recognised with full statutory benefits at par with permanent employees — simplifying contract hiring.

Sole bargaining agent

A single trade union with 51%+ membership becomes the sole negotiating agent, simplifying industrial relations management for employers.

4.OSH, Safety & Working Conditions Code, 2020

Occupational safety, working hours, welfare, and contract labour

Consolidates 13 acts

Replaces these acts

Factories Act, 1948
Contract Labour (R&A) Act, 1970
Mines Act, 1952
Plantations Labour Act
Building & Construction Workers Act
Inter-State Migrant Workers Act
Dock Workers Act
+ 6 more

How PionHR handles this

  • Working hours, overtime caps and shift scheduling compliance
  • Leave entitlement calculation aligned to revised thresholds
  • Contract labour register maintenance and compliance tracking
  • Automated generation of all statutory registers in prescribed formats
  • Annual return filing and inspection-ready documentation
Key changes your HR team needs to know
Universal applicability

The Code now applies to all establishments with 10 or more workers — far broader than the sector-specific acts it replaces.

Revised leave rules

Earned leave can be availed after 180 days of service (reduced from 240). Accumulated leave encashment rules have also been revised.

Single registration

Establishments will need a single licence/registration instead of multiple act-specific registrations — significantly reducing compliance overhead.

Why prepare with SGCMS and PionHR

Trusted by 1,600+ organisations across India to navigate every labour law reform since 1979.

1. Already built-in

PionHR's payroll and compliance engine is designed around the new Code definitions — no manual reconfiguration when rules are notified.

2. Real-time rule
updates

As states notify their rules, PionHR's compliance module is updated automatically — so you are never caught off-guard by a rule change.

3. Audit-ready
records

Statutory registers and filings are generated in the formats prescribed under each Code — ready for inspection at any time.

4. Expert advisory

SGCMS's compliance team can guide your organisation through the transition — from salary restructuring to register migration.

5. One platform, all
four codes

PionHR handles wages, social security, industrial relations, and OSH compliance from a single unified platform — no patchwork of tools.

6. Salary restructuring
support

The revised wage definition affects take-home pay and contributions. PionHR models the impact before go-live so there are no payslip surprises.

Contact us today to explore how SGCMS can transform your employees’ experience. Your success is our commitment.

Frequently asked questions

What HR and payroll teams are asking about the 4 Labour Codes.

All four Codes have received Presidential assent and are enacted as law. However, most provisions come into force only after central and state governments publish their respective rules. Several states are in advanced stages of notifying rules. Businesses are strongly advised to begin preparation now to avoid a compliance rush at the time of enforcement.

The Code on Wages redefines "wages" to include all pay components except a specific exclusion list. Allowances currently used to reduce PF and bonus bases may now fall within the definition of wages, increasing your statutory contribution liabilities. PionHR can model the financial impact on your current salary structure before any changes go live — speak to our team.

Yes. The Code on Social Security, 2020 for the first time extends social security coverage to gig and platform workers. Aggregator businesses will be required to contribute a percentage of their annual turnover to a government-managed social security fund. The exact rules are pending state notification — PionHR is built to configure this once notified.

Most existing registers prescribed under the 29 individual acts will be replaced by new consolidated formats under the respective Codes. PionHR's automated statutory register module will be updated to generate the new prescribed formats as and when state rules are notified — you will not need to manually redesign your registers.

The Code raises the threshold for seeking government permission before retrenchment from 100 workers to 300 workers. Establishments with up to 300 workers will be able to carry out retrenchment and layoffs without prior government approval — a significant change that affects workforce planning and separation management processes.

Start with the readiness checklist on this page to identify your highest-priority gaps. Then speak with our compliance team at SGCMS for a structured transition assessment — covering salary structure impact analysis, register migration, system configuration, and staff training. With 45+ years of managing every major labour law reform in India, we have the expertise to guide you through this transition efficiently.

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