This technical modification carries substantial implications for how numerous employee benefits must be calculated.The Labour Codes replace the varying definitions of wages under earlier labour laws with a single, standardised formulation. The total pay remains unchanged, and only a notional pool will be added back to meet the fifty percent threshold. Additionally, state-level legislation such as Shops and Commercial Establishments Acts remain in force, unrepealed by the Labour Codes. Organisations must navigate the interaction between these continuing state laws and the new central framework.The coming months will be critical. Organisations must undertake individualised assessments to understand how the Labour Codes affect their particular circumstances and develop tailored compliance strategies accordingly.

Source: Economic Times December 25, 2025 01:47 UTC