India’s New Labour Codes: IT Employees Must Get Salaries by 7th of Every Month
India’s landmark labour reforms have officially taken effect, with IT companies now legally required to pay employees by the 7th of each month under the new unified Labour Codes. The sweeping reforms replace 29 outdated labour laws with four comprehensive codes that modernize the country’s workforce regulations.
Key Takeaways
- IT companies must disburse salaries by the 7th of every month
- All employees, including gig workers, get social security benefits
- Women can now work night shifts with safety measures
- Equal pay for equal work mandated across IT sector
What the New Labour Codes Include
The four labour codes – Code of Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and Occupational Safety, Health and Working Conditions Code (2020) – create a unified framework for India’s previously fragmented labour laws.
The reforms introduce standardized wage rules, enhanced safety standards, expanded social security coverage, and simplified compliance procedures for employers. The salary deadline for IT employees is expected to reduce financial stress and build trust between workers and companies.
Government Announcement and Benefits
Labour Minister Mansukh Mandaviya announced the implementation on social media platform X, highlighting that the codes ensure:
- Timely minimum wages for all workers
- Mandatory appointment letters for every employee
- Equal pay and workplace dignity for women
- Gratuity benefits for fixed-term employees after one year
- Free annual health check-ups for workers above 40
The Ministry of Labour emphasized that before these reforms, there was no mandatory requirement for timely wage payments.
Impact on IT and Gig Workers
IT companies must now provide social security benefits – including provident fund, ESIC, insurance, and gratuity – to all employees, including gig workers. This addresses long-standing demands from a sector where many workers operate on fixed-term contracts or project-based arrangements.
The codes also enable women to work night shifts across all occupations with proper safety measures and consent. Companies must provide necessary facilities to support women working during night hours, potentially boosting female workforce participation.
A senior government official confirmed that while the Acts are now notified, detailed rules will be rolled out within 5-7 days, with sections not requiring rules taking immediate effect.
