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 Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..