Key considerations of the notified Central Rules under India's Labour Codes

At a glance

• On 8 May 2026, India’s Ministry of Labour and Employment (MoLE) notified the central rules (Central Rules) under all four labour codes, advancing their operationalisation.
• The Central Rules apply only where the central government is the ‘appropriate government’, meaning applicability will vary by sector and establishment.
• The Central Rules introduce detailed compliance requirements across wages, social security, industrial relations, and workplace health and safety.
• Key changes include new frameworks for wage calculation, social security contributions, dispute resolution, notification of model standing orders for specific sectors, and working conditions.
• The notification marks a significant step towards implementation of the labour law reforms, requiring businesses to reassess compliance readiness across India.

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We would like to express gratitude to JSA for their contribution on this publication.

On 8 May 2026, the MoLE notified the Central Rules under India’s four labour codes:

• Code on Wages (Central) Rules 2026 (Wage Rules) under the Code on Wages 2019 under the Code on Wages 2019 (Wage Code).
• Social Security (Central) Rules 2026 (Social Security Rules) under the Code on Social Security 2020 (Social Security Code).
• Industrial Relations (Central) Rules 2026 (Industrial Relations Rules) under the Industrial Relations Code 2020 (Industrial Relations Code).
• Occupational Safety, Health and Working Conditions (Central) Rules 2026 (OSH Rules) under the Occupational Safety, Health and Working Conditions Code 2020 (OSH Code).

This development represents a key step towards full operationalisation of India’s consolidated labour law framework.

In parallel, MoLE also issued a range of supporting notifications, including the appointment and delegation of powers to authorities, model standing orders for mines, manufacturing and service sectors, establishment of the worker re-skilling fund, and measures relating to vacancy reporting and medical schemes. Together, these actions signal a renewed phase of implementation and compliance preparation.

Central Rules and their applicability

The applicability of the Central Rules depends on whether the central government is the ‘appropriate government’ for a given establishment. This typically includes sectors such as public sector undertakings, railways, mines, ports, and banking and insurance. For other establishments, such as factories, plantations and newspaper organisations, the relevant state government rules will apply, requiring businesses to assess applicable frameworks on a case-by-case basis.

Key compliances under the Central Rules

The Central Rules introduce detailed compliance requirements across the four labour codes.

Wage Rules under the Wage Code

The Wage Rules establish mechanisms for fixing minimum wages, including the manner of fixing the floor wage, prescribe working hours and rest periods, regulate deductions and penalties, and introduce procedures for compounding of offences. They also impose obligations on principal employers in case of contractor default in paying minimum bonus to contract labour.

Social Security Rules under the Social Security Code

The Social Security Rules apply to establishments in respect of which central government is the appropriate government, including establishments having operations in more than one State. The Social Security Rules set employer and employee contribution rates payable to the Employees State Insurance Corporation (ESIC), clarify income thresholds for dependent parents to be eligible for earnings from the ESIC and set age threshold for gig workers to be eligible for benefits under the Social Security Code, and expand obligations around maternity benefits, including dismissal of a woman employee during pregnancy or maternity due to misconduct, gratuity for fixed-term employees and crèche facilities. They also introduce new reporting obligations, including mandatory vacancy reporting within prescribed timelines, and provide for administrative structures and enforcement mechanisms.

Industrial Relations Rules under the Industrial Relations Code

Under the Industrial Relations Rules, ‘appropriate government’ in case of contract labour disputes will be determined by the entity which has control over the concerned industrial establishment where such dispute arises from. The Industrial Relations Rules provide detailed procedures for works committees, grievance redressal, conciliation proceedings, strikes and lockouts, and retrenchment. The Industrial Relations Rules further introduce model standing orders for mines, manufacturing and service sectors and formalise processes for notices of change and appointment of authorities to exercise certain functions under the Industrial Relations Code. Notably, the Industrial Relations Rules also operationalise the worker re-skilling fund, although further clarity on implementation is expected.

OSH Rules under the OSH Code

The OSH Rules streamline registration requirements, prescribe standardised appointment letter formats, and codify working hour limits and overtime rules. The OSH Rules also set extensive health, safety and welfare standards across sectors, introduce obligations relating to electronic wage slips and record-keeping, and establish conditions for employing women in night shifts. Further, the OSH Rules require a single license for contractors operating in more than one State, or in the whole of India.

Conclusion

Overall, the notification of the Central Rules represents a significant milestone in India’s labour law reforms. Businesses operating in India should now undertake a comprehensive review of their compliance frameworks, taking into account both central and state-level rules, to ensure readiness for implementation.

To see more detail on the key compliances under Central Rules, please view our full article here.