2. Code on Wages: In the notified final rules, the Centre has dropped the criteria for calculating minimum wage in the final Code on Wages (Central) Rules, 2025, stating that the criteria will be “separately specified by the central government by special or general order”.

— Floor wage: Separately, the new wage rules state that a floor wage will be fixed by the central government, taking into account “the minimum living standard, clothing, housing, and any other factor considered appropriate by the central government from time to time”.

— The floor wage will act as a baseline wage below which states cannot fix their minimum wages, which is going to be closely eyed given the recent backdrop of a spate of workers’ protests across several industrial hubs in the country.

— The government specified that the number of working hours in a normal working day for an employee whose wage period is on a daily basis will be eight hours. For those employed on other than the daily wage mode, the number of working hours will be fixed in a manner to not exceed the weekly cap of 48 hours. Interval for rest will be fixed separately under the Occupational Safety, Health and Working Conditions Code, 2020.

3. Code on Social Security: Under the Social Security (Central) Rules, 2025, Aadhaar-linked registration of every unorganised worker aged above 16 years is mandatory.

— Every aggregator engaging any new gig and platform worker will have to register such a worker on a designated portal of the central government in real time and will also have to provide the exit details of gig and platform worker registered with them on the portal.

— A National Social Security Board will also be formed for gig and platform workers, which will include members from Lok Sabha, Rajya Sabha, unorganised sector workers’ and employers’ associations, states, and representatives from scheduled castes, scheduled tribes, women and minorities, the rules stated.

4. Industrial Relations Code: As per the Industrial Relations (Central) Rules, 2026, Industrial establishments employing 20 or more workers must constitute a Grievance Redressal Committee with Equal employer—worker representation, maximum strength of 10 members, and proportional representation of women workers.

— Companies with up to 300 employees no longer need government permission to fire workers (Retrenchment/Layoff). Previously, this limit was 100 employees.

— The Code states that workers cannot strike without giving notice within 60 days before striking or within 14 days of giving such notice.

— The definition of strike has been amended to include mass casual leave, wherein casual leave has been taken by more than 50 per cent of the workers on a given day. The government said this has been done to discourage flash strikes.

5. Occupational Safety, Health and Working Conditions (OSH) Code: As per the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 for women workers, who have been allowed to work in the night shift under the OSH Code beyond 7 PM and before 6 AM, the consent of the female employee has to be taken by the employers in writing.

— Adequate transportation facilities have to be provided for pick-up and drop-off for such women employees at their residences in addition to a safe and well-lit workspace.

— Mandatory appointment letters to be issued by employers to every employee. Free annual health check-ups for employees aged 40 years and above, and equal pay, work, and opportunity for women across different shifts.

— Employers will be required to electronically furnish data relating to inter-state migrant workers and their occupational safety and health details through designated portals.

— Every factory employing 500 or more workers, or other categories notified by the Central Government, will need to constitute a safety committee consisting of employers’ and workers’ representatives.

BEYOND THE NUGGET: Different types of wages

1. Minimum wage is the least enumeration that an employer legally ought to pay the wage earners. The draft rules in January 2026 had included the earlier criteria for the calculation of the minimum wage, which was linked to

(i) net intake of 2,700 calories per day per consumption unit

(ii) 66 meters of clothing per year per standard working-class family comprising the worker, a spouse, and two children; and

(iii) Housing rent expenditure of 10% of food and clothing expenditure apart from fuel, electricity, and other miscellaneous expenses as 20% of the minimum wage

(iv) 25% of minimum wage as expense for children education, medical, recreation, and contingencies.

This formula had evolved in line with the landmark 1991 Supreme Court judgement in the Reptakos Brett case and recommendations of the 15th Indian Labour Conference (ILC) in 1957.

2. Living wage: It is a minimum wage that is necessary for a worker to meet the basic needs like housing, clothing, food, and transportation. It allow them to afford a standard of living that includes education, health, and savings. It is generally higher than the minimum wage.

3. Fair wage: It is a wage that is fair to both employer and employee, taking into account factors like industry profitability and the cost of living. It is generally between the minimum wage and the living wage.

Post Read Question

In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers? (UPSC CSE 2022)

(a) Central Statistics Office

(b) Department for Promotion of Industry and Internal Trade

(c) Labour Bureau

(d) National Technical Manpower Information System

(Sources: Govt notifies rules for all labour codes, minimum wage criteria dropped, Timely wages, higher basic pay, health checkup, Labour codes: What changes for workers and employers)

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