India Inc starts work on implementing labour codes

MUMBAI: Companies are scrambling to assess the impact of India's biggest labour reform on costs and salary structures with their compensation, finance and human resources teams

- Devina Sengupta [e-mail]

The Centre on Friday notified four new labour codes.

(MINT)

The Centre on Friday notified four new labour codes consolidating 29 laws, expanding basic social security and minimum wage guarantees across the labour landscape. Over the weekend, employers worked on the development that ripples across 400 million formal and informal workers, HR executives and consulting firms assisting them with compensation structures said.

“We had meetings over the weekend and will need more clarity on where the variable component falls—would it be under the 50% of the wages that will see increased statutory benefits or the one without,” a top executive at one of India’s large diversified conglomerates said on the condition of anonymity.