The labour and employment ministry is revisiting a long-pending proposal to raise the wage ceiling for provident fund coverage, after recent pay increases risk pushing a large pool of workers out of the social security net.

The wage ceiling could be raised to as much as Rs 25,000 and Rs 30,000 per month from Rs 15,000 currently, under the Employees' Provident Fund Organisation (EPFO).

The rethink follows sharp wage increases for industrial workers in the National Capital Region. This could result in exclusion of many skilled employees from mandatory EPFO coverage, undermining the government's push towards universal social security.

The Employees’ Provident Fund Organisation (EPFO) has expanded its de-linking facility to cover cases where wrong Member IDs (MIDs) were created without the knowledge of members and where contributions have already been deposited into such erroneous accounts.

The move follows an earlier circular dated January 17, 2025, which established a user manual empowering users to delink any incorrect Member ID in their UAN that had been linked without their consent. The same functionality has now been expanded to include those cases where the wrong MIDs were created without the members’ knowledge and contribution is also available in such MIDs.

How the Process Works
The de-linking process begins at the member’s end. A member can raise a de-linking request directly through the Member Portal, following which the request is forwarded to the employer’s login for acceptance or rejection.

The new labour laws, implemented on November 21 last year, have significantly overhauled the country’s framework governing employment, workplace policies, and wages. The implementation of new labour codes has also brought important changes to gratuity rules, impacting both employees and employers. One of the most significant updates is how “wages” are defined, which directly affects how gratuity is calculated and could lead to higher payouts.

There was initial confusion about whether these rules would apply retrospectively. However, the government has clarified that the revised gratuity provisions will be applicable from November 21, 2025 — the date when the Code comes into force, according to the Labour Ministry’s FAQs.

Starting April 1, companies will be required to provide appointment letters to all workers under the new Labour Codes. Employers who fail to comply will face penalties. The government has mandated that every employer must issue an appointment letter to every employee. If an employee does not have one by the time the Code takes effect, it must be issued within three months.

The Labour Codes make appointment letters mandatory for all workers. Previously, written terms existed in parts of the law but were not uniformly enforced or standardised across the labour market. According to the Occupational Safety, Health and Working Conditions Code, 2020, the responsibility to issue appointment letters lies with employers.

New Labour Codes 2025: Confusion over how gratuity will be calculated under the new labour codes has finally been addressed, with the government making it clear that the revised rules will apply from November 21, 2025.

The clarification comes as part of a fresh set of FAQs released by the Labour Ministry, aimed at resolving lingering doubts around implementation timelines, wage definition, and social security provisions.

Gratuity calculation from April 1
One of the biggest concerns among employees and employers was whether gratuity calculations would be revised for past service periods. The answer is no. A section of employees was also confused about whether the revised gratuity calculation would be implemented from April 1 — here too, the answer is no.

Since the new labour codes came into force on November 21, 2025, people have been asking how different salary components like overtime allowance, gratuity, bonuses, and retirement benefits fit into the revised wage definition. In particular, employees are keen to understand whether overtime payments count toward the 50% wage floor and what exactly is meant by "total remuneration" under the new rules.

The government has consolidated 29 labour laws into four comprehensive Labour Codes. The four Labour Codes include the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.
Here are important FAQs on Code on Wages, 2019, Industrial Relations Code 2020, Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (OSH&WC)

The government is not currently planning any specific changes to the Employees’ Provident Fund Organisation (EPFO) scheme as part of the new labour codes, according to the Labour Ministry’s response in the Rajya Sabha.

In a written reply to a question raised by Rajya Sabha MP Sandosh Kumar P, Minister of State for Labour and Employment Shobha Karandlaje clarified the government’s position on possible changes to EPFO provisions and the interest rate on provident fund deposits.

The response also sheds light on how the upcoming labour reforms under the Code on Social Security, 2020 will treat existing EPFO schemes once the new framework is implemented.

Chief Minister Yogi Adityanath on Monday stressed the urgent need to replace the colonial-era Societies Registration Act with a modern and practical legislation in Uttar Pradesh for clarity on crucial issues such as property protection and speedy resolution of disputes.

He insisted that whether it is a trust or a society, a strong mechanism must be in place to prevent the arbitrary sale of institutional properties for vested interests.

Chairing a meeting attended by the state's Finance Minister Suresh Khanna, the chief minister said a new legislation will introduce contemporary provisions to strengthen registration, renewal, property management, and financial transparency.

The government has listed the Securities Markets Code Bill 2025 for the Winter session of Parliament starting December 1, according to a bulletin issued by the Lok Sabha Secretariat.

The unified securities markets code will help boost the ease of doing business in the country's financial markets.

The Bill seeks to merge the provisions of the Securities and Exchange Board of India Act, 1992, the Depositories Act, 1996 and the Securities Contracts (Regulation) Act, 1956 into a unified code.

Giving his approval on Thursday to
Delhi govt's proposal to allow women to work 24x7 at the city's retail establishments, lieutenant governor VK Saxena suggested that all such outlets must constitute internal complaints committees as per the Prevention of Sexual Harassment (POSH) Act for the redressal of any complaints of that nature.
LG also urged the govt to strengthen public transport during the late-night hours, while asking the excise department to "harmonise" the timings of bars and restaurants as per the timings of other establishments covered under the Shops and Establishment Act, 1954.
Chief minister Rekha Gupta on Tuesday had approved the proposal to allow women to work night shifts (24x7) in shops and commercial establishments, a move aimed at empowering women and promoting greater workforce participation in the capital. The proposal was moved by the labour department of the Delhi govt following a discussion between the LG and the CM earlier this year.

India’s state of Madhya Pradesh (MP) has enacted the Second Amendment to its Shops & Establishments Act, 1958, reinforcing its move towards a fully digitized compliance ecosystem. The amendment modernizes how establishments are registered, monitored, and inspected, with all key processes now routed through state government-notified online systems.

The board of the Employees’ Provident Fund Organisation (EPFO) on Monday recommended retaining the interest rate on provident fund deposits at 8.25% for FY26. This marks the third consecutive year that EPF subscribers get this rate of return for their investments in the retirement fund.

The board’s recommendation will now be sent to the Ministry of Finance for ratification. Following approval, the Ministry of Labour and Employment will notify it, after which EPFO will credit the interest to subscribers’ accounts.

The decision was taken at the 239th meeting of the Central Board of Trustees (CBT), chaired by Union Labour and Employment Minister Mansukh Mandaviya. It will benefit around 78 million crore contributing (active) subscribers and nearly 300 million total subscribers.

The rollout of the new labour laws has changed the way companies structure salaries. With basic pay now required to be at least 50% of total remuneration, employers are facing higher contributions towards provident fund (PF), gratuity and other statutory benefits. This has sparked a big question among employees ahead of the appraisal cycle — will companies moderate salary hikes citing higher compliance costs? While the reform strengthens long-term retirement benefits, it may reshape take-home salary and increment patterns in the short term.

The four new labour codes are expected to ensure that workers’ wages and benefits grow in step with rising corporate profits, Chief Economic Adviser V Anantha Nageswaran said, pointing to a shift in how gains from growth are shared. "The important thing is that labour codes also make it very clear that there has to be a balance in terms of the worker's rights and what the employers have been asking about. Labour codes will also do its own bit to make sure that wage growth and the benefit growth is commensurate with profitability growth. That is an important development that has happened since we wrote the survey last year," he said. Responding to questions on the gap between strong corporate profitability and weaker wage and employment growth, particularly at entry levels, Nageswaran said the labour codes clearly seek to balance workers’ rights with employers’ concerns.

India's transition to a new labour law framework has triggered one of the biggest shifts in how salaries are paid and how statutory benefits are calculated. With the four labour codes coming into force on Nov 21, 2025, India has moved to a unified labour framework, and at the heart of this reform is a single, standardised definition of "wages," which now applies for all statutory benefits governed by these codes. To understand why this matters, it helps to look at how salaries are typically paid in India. Most employers follow a Cost-to-Company (CTC) structure, where salary is distributed across basic salary, various allowances along with the option for employees to opt for tax-efficient reimbursements for travel expenses, telephone and internet expenses, fuel expenses and similar items. The new labour codes reshape this structure by clearly defining what counts as "wages" for the purpose of various statutory benefits. Under the codes, wages cover all salary components (including basic pay, dearness allowance and retaining allowance) excluding specific components listed in the definition of wages. If excluded components exceed 50% of total pay, the excess must be added back to wages for statutory calculations.

The Employees' State Insurance Corporation (ESIC) has announced that more employees can now access ESI benefits following the notification of the Labour Code 2025 (Code on Social Security, 2020) effective from November 21, 2025. The Labour Code 2025 consolidates and amends social security laws for employees in various sectors, ensuring they receive medical and financial security benefits as envisaged in the Code on Social Security, 2020. In a circular (no. 35/BEC/MISC-FILE/23-24/COSS2020) dated December 10, 2025, ESI said that it is mandatory for all establishments, that meet the prescribed criteria under the Code, to register themselves with Employees' State Insurance Corporation (ESIC).

The Ministry of Labour and Employment has released draft rules under the four labour codes, the Code on Wages, Code on Social Security, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code, inviting public and stakeholder feedback within a 30-45 days. The draft rules give clarity on certain provisions such as calculation of wages, gratuity payments and composition of National Social Security Board for gig and platform workers. The codes, which consolidate 29 existing central labour laws and were enforced from November 21 after parliamentary approval five years ago, introduce several significant changes aimed at streamlining regulations and extending social security coverage. The draft rules prescribe a standard 48-hour working week, with separate provisions to be notified for daily working hours, rest intervals, and spread-over time. All unorganised sector workers above the age of 16 will require Aadhaar-linked registration.

As India prepares for the rollout of the four new Labour Codes, one benefit has drawn maximum attention from employees across sectors — gratuity. While discussions around wages, work hours and compliance have been ongoing, many employees are still unclear about how gratuity calculations, eligibility and payouts may change once the codes are implemented. To address accounting and implementation-related doubts, the Institute of Chartered Accountants of India (ICAI) has released a detailed set of FAQs on the new Labour Codes. While these clarifications are technical in nature, they throw up several important takeaways that matter directly to employees — especially on how gratuity liabilities will rise, when they must be recognised, and who becomes eligible.

When the Centre last month announced the rollout of the long-awaited four new labour codes — Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020, many private sector employees believed a major shift in workplace benefits was finally underway. One announcement, in particular, caught attention — fixed-term employees are now eligible for gratuity after just one year of service, instead of the previous requirement of five years. But weeks later, confusion has only deepened. Despite the Centre notifying the labour codes, most provisions are still not enforceable on the ground. The reason is that labour is a concurrent subject, which means states must separately notify and operationalise rules before companies can act on them. Until that happens, employers remain cautious, and employees are left waiting. Gratuity reform: A big promise, but still on paper Under the new Labour Codes, the Centre proposed a major reform to the gratuity framework. For the first time, fixed-term employees were promised gratuity benefits after completing one year of service, recognising the reality of India’s growing contractual workforce.

The employees’ compensation act, which kicks in when an employee is injured in an accident at the workplace, was enacted way back in 1923. It has remained in force even as India’s economy underwent a structural transformation—from a British colony attaining Independence in 1947, to experimenting with nationalisation in 1969, liberalisation in 1991 and, more recently, demonetisation, the introduction of the goods and services tax (GST), the outbreak of the Covid-19 pandemic and now the emergence of the digital economy. To keep pace with that change, the government started working on modernising the archaic labour laws nearly a decade ago. Those efforts culminated in the four Labour Codes enacted in 2019 and 2020—the Code on Wages, 2019, Occupational Safety, Health and Working Conditions Code, 2019, the Industrial Relations Code, 2020, and the Code on Social Security, 2020.