On May 8 and 9, 2026, the Ministry of Labour and Employment (MoLE) announced the final Central rules under the four labour codes, marking a pivotal moment in workforce compliance. These include the Code on Wages (Central) Rules, 2026, the Social Security (Central) Rules, 2026, the Industrial Relations (Central) Rules, 2026, and the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, collectively referred to as the ‘Central Rules’. Although the Labour Codes were initially introduced on November 21, 2025, their full implementation was delayed due to the absence of detailed subordinate legislation.
The MoLE clarified in an FAQ dated March 16, 2026, that the Central Rules are applicable only to specific establishments where the Central government acts as the ‘appropriate government’. These include sectors like railways, mines, banking, insurance, and central public sector undertakings. Employers in other sectors, where the State government serves as the ‘appropriate government’, must ensure compliance with respective State rules.
Code on Wages (Central) Rules, 2026
The Wages Rules reinforce the Labour Codes by stipulating an eight-hour workday and a 48-hour workweek, alongside mandating a weekly rest day, typically Sunday. Notably, Rule 6(2) allows employees to work on rest days, provided they receive a compensatory rest day during the week. However, no employee can work more than ten consecutive days without a rest day.
Rule 13 introduces changes to employee deductions, ensuring that any authorized deductions exceeding 50% of wages are carried forward to the next wage period. Additionally, Rule 18 mandates that employers provide employees with an opportunity to explain any deductions for damages or losses within seven days.
Social Security (Central) Rules, 2026
The Social Security Rules specify the contribution rates to the Employee State Insurance Corporation, set at 3.25% for employers and 0.75% for employees. Rule 19(2) offers a three-year exemption from employer contributions for employees with disabilities.
Gratuity entitlements for fixed-term employees are clarified under Rule 33, where service periods exceeding six months are rounded up for gratuity calculations. The Rules also detail maternity benefits, including two 15-minute nursing breaks and specifications for crèche facilities within one kilometer of workplaces.
Industrial Relations (Central) Rules, 2026
The Industrial Relations Rules necessitate that employers notify trade unions and display notices about lock-outs and closures prominently. Rule 29 requires a 60-day notice before intended closures, and Rule 37 demands employers pay an amount equivalent to 15 days’ wages into a re-skilling fund for retrenched workers within ten days.
The Rules also contain Model Standing Orders for the mining, manufacturing, and services sectors, with certification procedures detailed under Rule 10.
More Read
Occupational Safety, Health and Working Conditions (Central) Rules, 2026
The OSH Rules mandate appointment letters containing specific information and outline overtime pay requirements. Workers exceeding eight hours daily or 48 hours weekly are entitled to overtime pay at twice the normal rate, with no more than 144 overtime hours allowed per quarter.
Rule 83 includes provisions for employing women on night shifts, requiring consent, transportation arrangements, and emergency contact information.
The notification of the Central Rules represents a crucial step in India’s labour law reform, with State implementations anticipated soon. Employers should proactively align their employment practices and wage structures with these evolving rules to mitigate compliance risks. Akanksha Dua and Divyaansh Dulles of Obhan Mason provide this expert insight, emphasizing the importance of proactive compliance.
