Four labour codes unlikely to be implemented in FY22

20 Sep 2021 CW Team

The four labour codes may not be implemented this fiscal year due to slow progress on the drafting of rules by the states.

The four labour codes implementation assumes importance because once these came into force, there would be a reduction in take-home pay of employees, and firms have to bear higher provident fund liability.

As per the source, under the four labour codes, the Ministry of Labour is ready with the rules. But the states have been late in drafting and finalising those under new labour codes. Besides, due to political reasons, the government is not interested in implementing the four codes.

Parliament passed the four codes. But for implementation of these codes, rules under these must be published by central and state governments for implementing those in particular jurisdictions.

The four labour codes implementation may likely be delayed beyond this financial year, said the source.

There will be key changes in the way basic pay and provident fund of employees are being determined, once the wages code is implemented.

From April 1, 2021, the ministry had envisioned the implementation of the four labour codes on industrial relations, social security, wages, occupational health safety, and working conditions. The four labour codes will account for 44 central labours laws.

Under the labour codes, the ministry had even finalised the rules. But these labour codes could not come into force because many states were not in a position to draft rules under these codes in their domains.

Allowances are capped at 50% under the new wages code. This indicates that half of the employee's gross pay would be basic wages.

After the new code implementation, the take-home pay of employees would decrease while provident fund (PF) liability of employers would rise in several cases, and employers would have to restructure the salaries of their employees according to the new code on wages.

Image Source

The four labour codes may not be implemented this fiscal year due to slow progress on the drafting of rules by the states. The four labour codes implementation assumes importance because once these came into force, there would be a reduction in take-home pay of employees, and firms have to bear higher provident fund liability. As per the source, under the four labour codes, the Ministry of Labour is ready with the rules. But the states have been late in drafting and finalising those under new labour codes. Besides, due to political reasons, the government is not interested in implementing the four codes. Parliament passed the four codes. But for implementation of these codes, rules under these must be published by central and state governments for implementing those in particular jurisdictions. The four labour codes implementation may likely be delayed beyond this financial year, said the source. There will be key changes in the way basic pay and provident fund of employees are being determined, once the wages code is implemented. From April 1, 2021, the ministry had envisioned the implementation of the four labour codes on industrial relations, social security, wages, occupational health safety, and working conditions. The four labour codes will account for 44 central labours laws. Under the labour codes, the ministry had even finalised the rules. But these labour codes could not come into force because many states were not in a position to draft rules under these codes in their domains. Allowances are capped at 50% under the new wages code. This indicates that half of the employee's gross pay would be basic wages. After the new code implementation, the take-home pay of employees would decrease while provident fund (PF) liability of employers would rise in several cases, and employers would have to restructure the salaries of their employees according to the new code on wages. Image Source

Infrastructure Urban

09 Jan 2026

Teknovace, Remmers Forge Rs 3 Bn Deal for Global Coatings Hub

Teknovace has entered into a strategic global partnership with Germany-based Remmers Gruppe SE to build a large-scale, export-oriented wood coatings manufacturing platform in India. As part of the alliance, Remmers will make a strategic equity investment of Rs 3 billion to acquire a 50.01 per cent stake in Teknovace in two tranches, marking one of the largest foreign strategic investments in India’s wood coatings sector.The partnership comes at a time when India’s wood coatings market, valued at around $1.3 billion (Rs 100 billion), is growing at an estimated 11% annually, driven by demand..

Infrastructure Urban

09 Jan 2026

Jyoti Structures Commissions Galvanisation at Second Nashik Unit

Jyoti Structures has commissioned galvanisation operations at its second tower manufacturing unit in Nashik, strengthening its in-house capabilities across critical stages of power transmission infrastructure production. The listed Engineering, Procurement and Construction (EPC) company operates globally and has delivered projects for customers across more than 50 countries.The second Nashik unit, with an annual manufacturing capacity of 36,000 metric tonnes, has become operational following the completion of installation, testing and readiness of the new galvanising facilities. With this deve..

Infrastructure Energy

09 Jan 2026

Rosatom Connects First Kursk NPP-2 Unit to National Grid

Rosatom has launched the first power unit of the Kursk Nuclear Power Plant-2 (Kursk NPP-2) into Russia’s Unified Energy System, marking a key milestone in the country’s nuclear energy programme. The initial grid connection took place at the end of the year, bringing a new source of low-carbon electricity online for the Kursk region and the broader Central Energy System.The newly commissioned unit is the first implementation of the VVER-TOI reactor design, which incorporates advanced safety and performance features. With an installed capacity of 1,250 MW, it is the most powerful nuclear pow..