India labour law 2026: the four codes, and what changed
India has replaced 29 older laws with four labour codes. Here is what a European employer needs to know in 2026.
Updated
India has consolidated 29 older labour laws into four codes. For a European company hiring in India, the shift matters less as legal theory and more as a set of obligations that now sit behind every employment: wages, benefits, safety, and how disputes are handled. This is a plain-English map of the four codes and where things stand in 2026.
The four codes
- Code on Wages, 2019 — minimum wages, timely payment, bonus, and a single definition of "wages" that sets the base for statutory contributions.
- Industrial Relations Code, 2020 — employment terms, standing orders, and the process around notice and disputes.
- Code on Social Security, 2020 — provident fund, employee state insurance, gratuity, and maternity benefit, brought under one roof.
- Occupational Safety, Health and Working Conditions Code, 2020 — working conditions, appointment letters, and workplace safety.
What changed in 2026
The four codes are now in force nationwide, and the central government notified the final Central Rules on 8 May 2026. Several states are still finalising their own state rules through the middle of the year, so the exact detail can vary by the state an employee works in. The direction, though, is settled: fewer, broader laws, and a common wage definition underneath them.
Practical provisions that come with the codes include a mandatory appointment letter for every employee, a wage structure where basic pay is a defined share of the total, annual health check-ups in some cases, grievance handling, and specific provisions for women employees.
Why the wage definition matters
The common definition of "wages" sets the base for provident fund and gratuity. In practice, structuring pay so that basic salary is a fair share of the total keeps statutory contributions correct and the employee's later benefits, like gratuity and provident fund, in good shape. Getting this right at offer time avoids corrections later.
What it means for a European employer
You do not have to become an expert in four codes to hire well in India. What you need is a payroll and employment setup where these rules are already built in: the appointment letter, the wage structure, the statutory minimums, and the filings. That is exactly what an Employer of Record carries for you, so each hire stands on solid legal ground from the first day.
See how the platform applies these rules in payroll and EOR + HRMS, or book a short demo to walk through a real setup.
This guide is general information, not legal advice. State rules are still being finalised in 2026; confirm the position for the state your team works in.