Centre Clears Labour Code Rules: Missing Min Wage Formula Raises Red Flags

The Centre has notified the final rules under all four labour codes, giving effect to the proposed labour reforms nearly four months after draft rules were released in January. The new framework introduces provisions such as a national floor wage, an eight-hour workday with a 48-hour weekly cap, mandatory wage slips, Aadhaar-linked registration for gig and unorganised workers, and expanded social security measures.

However, a major change from the draft rules has triggered concern among labour experts and worker groups. The Centre has removed the detailed formula for calculating minimum wages from the final Code on Wages (Central) Rules, 2025, stating instead that the criteria will be specified separately through future government orders.

Experts say this omission could lead to lower minimum wages and wider disparities in wages across states for similar categories of workers.

The draft rules issued earlier this year had retained the long-standing formula linked to nutritional intake, clothing, housing rent and education expenses, based on the landmark 1991 Supreme Court judgment in the Reptakos Brett case and recommendations of the 15th Indian Labour Conference in 1957.

Under that framework, minimum wage calculations were tied to a family's daily intake of 2,700 calories per consumption unit, annual clothing requirements, housing rent, fuel and electricity costs, and additional expenses for children’s education, healthcare and recreation.

Labour economists argue that removing these benchmarks weakens the basis for fair wage determination and collective bargaining.

National Floor Wage Introduced

The new wage rules provide for a national floor wage to be fixed by the Centre in consultation with an advisory board and states.

The rules state that the floor wage will consider minimum living standards, clothing, housing and other factors deemed appropriate by the government from time to time. States will not be allowed to fix minimum wages below this floor level.

The move comes amid growing labour unrest and wage-related protests across several industrial clusters in the country.

The rules formally specify eight hours as the standard workday for employees paid on a daily wage basis.

For employees working under other wage structures, employers will have flexibility in structuring schedules, provided total working hours do not exceed 48 hours a week.

Industry experts say the framework could support more flexible work arrangements, particularly in sectors adopting hybrid and work-from-home models.

Detailed provisions related to rest intervals and workplace safety will be governed separately under the Occupational Safety, Health and Working Conditions Code, 2020.

Gig Workers, Unorganised Sector Brought Under Social Security Net

Under the Social Security (Central) Rules, 2025, Aadhaar-linked registration of all unorganised workers above the age of 16 will become mandatory.

Aggregators and digital platforms employing gig workers will be required to register workers on a central government portal in real time and update exit details when workers leave platforms.

The government will also establish a National Social Security Board for gig and platform workers. The board will include representatives from Parliament, worker associations, employers, states and members representing scheduled castes, scheduled tribes, women and minority communities.

The motive behind this move is to create a formal framework for extending welfare benefits and social protection to India's rapidly expanding gig economy workforce.

Under the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, contractors operating in multiple states or nationwide will be able to apply electronically for a single licence. Authorities will have to approve or reject applications within 45 days.

The rules also formally permit women employees to work night shifts between 7 PM and 6 AM, subject to written consent. Employers will be required to provide safe transportation, pick-up and drop facilities, and ensure secure, well-lit workplaces for women employees working at night.