Centre Considers April 1 Rollout of Four Labour Codes, Weighs Impact on Employer Costs

The Ministry of Labour and Employment is considering implementing the four Labour Codes from April 1, aligning their rollout with the financial year followed by Indian companies.

The proposal is being examined as revised wage structures under the Codes could increase employer liabilities towards provident fund and gratuity, with potential balance sheet implications. The Ministry notified draft Rules for all four Codes on December 31, 2025, and invited stakeholder comments.

Although the Codes were enacted in November 2025, they will become operational only after the final Rules are notified or a separate commencement date is announced.

The Ministry is also considering relaxing eligibility thresholds for gig workers under the Code on Social Security, 2020.