The Union government has moved a step closer to implementing India’s long-pending labour reforms by notifying the final rules under the Industrial Relations (IR) Code, 2020 and the Code on Wages, 2019. On Friday, it notified the final rules under two of the four codes. The Labour Ministry has also issued the Model Standing Orders, 2026, for the manufacturing, mining and services sectors.
The move is seen as a significant milestone in operationalising the four labour codes passed by Parliament in 2019 and 2020, though full implementation will still depend on states framing and notifying their own rules.
The final rules were issued after the Centre released draft versions in December 2025 and sought feedback from stakeholders, including industry bodies and labour representatives.
Experts said the notified central rules would primarily apply to establishments where the Centre is the “appropriate government”, including sectors such as telecom, banking, insurance, oilfields, mines, air transport, major ports and central public sector undertakings.
The notification marks a major transition from policy formulation to implementation. The central rules are likely to become a template for states while framing their own labour code rules.
The notified Wage Code rules lay down detailed norms for fixing and revising minimum wages and variable dearness allowance (VDA).
Key provisions include:
VDA revision twice every year based on the consumer price index for industrial workers
Retention of the eight-hour workday norm
Maximum 48-hour workweek
Mandatory weekly rest day
Overtime payment for work on rest days
Digital maintenance of wage registers and records
Electronic wage slips, notices and claims process
The rules also require employers to preserve wage, attendance and overtime records for five years.
According to Gupta, the Wage Code rules bring greater clarity to wage fixation, payroll processes, working-hour norms and deduction procedures.
The newly notified Model Standing Orders for manufacturing, mining and services sectors aim to standardise employment conditions and workplace practices.
The standing orders mandate that employee records should include additional details such as:
Mobile number
Email address
Employees’ State Insurance (ESI) number
Other employment-related identification details
Industry observers say the provision is intended to strengthen digital compliance and improve worker record management.
Although the Centre has finalised the rules for two major labour codes, nationwide implementation remains incomplete as several states are yet to notify corresponding rules.
The four labour codes — covering wages, industrial relations, social security, and occupational safety — were introduced to simplify India’s labour laws by consolidating 29 central labour legislations into four broader codes.
Businesses have largely welcomed the reforms for improving compliance clarity and labour flexibility, while trade unions have raised concerns over workers’ rights, job security and ease of retrenchment.
