New labour code mandates salary disbursement by 7th of every month for IT employees

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The new labour code released by the central government on November 21 mandates salary disbursement by the 7th of every month for information technology (IT) and IT-enabled services employees.

“Today, our Government has given effect to the Four Labour Codes. It is one of the most comprehensive and progressive labour-oriented reforms since Independence. It greatly empowers our workers. It also significantly simplifies compliance and promotes ‘Ease of Doing Business,’” Prime Minister Narendra Modi wrote on X (formerly Twitter).

As part of the four labour codes, the government has introduced 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.

The codes will be effective from November 21, 2025, rationalising 29 existing labour laws.

Additionally, the code lays down provisions to facilitate women to work night shifts in all establishments.

The code also lays down rules for “equal pay for equal work” as mandatory, thereby strengthening women’s participation.

Also, it asks IT/ITes companies to facilitate for women to work night shifts in all establishments, therefore, opportunity for women to earn higher wages.

Moreover, the labour code asks for timely resolution of harassment, discrimination, and wage-related disputes.

The four Labour Codes will ensure better wages, safety, social security, and enhanced welfare for India’s workforce.

Apart from the above, the labour code asks to guarantee social security benefits through fixed-term employment and mandatory appointment letters.

The government says the code would make sure that India’s labour ecosystem is at par with global standards.

“By modernising labour regulations, enhancing workers' welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat,” a PIB filing by the Ministry of Labour & Employment read.