The Four Labour Codes
India's consolidation of 29 central labour laws into four codes - the Code on Wages, the Industrial Relations Code, the Social Security Code, and the Occupational Safety, Health and Working Conditions Code - represents the most significant labour law reform in decades. While the codes were passed in 2019-2020, implementation has been phased, and 2025 is the year when most states are expected to complete adoption.
For HR leaders, the key changes include: a new wage definition that includes basic pay plus specific allowances, expanded social security coverage for gig and platform workers, revised compliance thresholds based on establishment size, and streamlined filing requirements that replace multiple separate returns with unified submissions.
What Your HRMS Must Handle
Your HRMS must be updated to handle the new wage definition for payroll calculations, revised PF and ESI contribution thresholds, updated gratuity calculations, and the new compliance filing formats. If your HRMS does not automatically update these parameters, you will need to make manual adjustments - a process that is error-prone and time-consuming at scale.
At HiFive AI, we have built automated compliance management that updates in real time as state-level rules are notified. Our platform tracks the implementation status of each code across all 28 states and 8 union territories, ensuring that your payroll and compliance calculations are always current. This automation is not a convenience - it is a necessity given the pace and complexity of the regulatory changes.
- •29 central labour laws consolidated into four codes - most states completing adoption in 2025
- •Key changes: new wage definition, expanded social security, revised compliance thresholds
- •HRMS must handle updated wage calculations, PF/ESI thresholds, gratuity, and new filing formats
- •Manual compliance updates are error-prone at scale - automation is now a necessity
- •HiFive AI tracks implementation status across all 36 states and union territories in real time