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GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
RAJYA SABHA
UNSTARRED QUESTION NO. 3145
TO BE ANSWERED ON 19.03.2026
IMPLEMENTATION OF LABOUR CODES
3145. SHRI GOLLA BABURAO:
Will the Minister of Labour and Employment be pleased to state:
(a) how beneficial has been the implementation of Labour Codes;
(b) whether one of the biggest shifts, after coming into force of the
Labour Codes, is about payment of salaries and calculation of
statutory benefits;
(c) whether industry has come before Government for discussion on
the above issues and, if so, details thereof; and
(d) what constitutes as ‘wages’ for various statutory benefits under
the new Labour Codes?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): The Central Government has formulated the four Labour
Codes; viz; 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 after amalgamation,
simplification and rationalisation of existing 29 Central Acts and the
same have come into force w.e.f. 21.11.2025.
The four Labour Codes strengthen the protection available
to workers, including unorganized workers in terms of statutory
minimum wage, social security and healthcare of workers. The Codes
reduce multiplicity of definitions & authorities, facilitate use of
technology in enforcement of labour laws, bring transparency &
accountability in enforcement which will promote setting up of more
enterprises, incentivize economic growth, labour welfare and
facilitate employment generation.
The term “Wages” for statutory calculation has been
defined under Section 2(y) of the Code on Wages, 2019 which
specifies that “wages” means; all remuneration whether by way of
salaries, allowances or otherwise, expressed in terms of money or
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capable of being so expressed which would, if the terms of
employment, express or implied, were fulfilled, be payable to a
person employed in respect of his employment or of work done in
such employment, and includes: (i) basic pay; (ii) dearness allowance;
and (iii) retaining allowance, if any.
However, it does not include the components specified in
clauses (a) to (k) of the said definition. Provided that, for the purpose
of calculating wages under this definition, where the payments made
by the employer to the employee under clauses (a) to (i) exceed one-
half of the total remuneration, the amount exceeding such one-half,
shall be deemed to form part of the wages and shall accordingly be
added thereto.
This unified definition provides a consistent basis for the
computation of statutory benefits, as provided under the Labour
Codes; such as provident fund, gratuity, bonus, and overtime etc.
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