2019 – 2020Code on Wages (2019) and three codes (2020) enacted
21 Nov 2025All four codes brought into force
May 2026Central rules notified; states notify their own
Labour codesFour codes replace 29 central laws
The Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020 and the Occupational Safety, Health and Working Conditions (OSH) Code 2020 took effect on 21 November 2025, per the Ministry of Labour & Employment. Appointment letters for every worker are now mandatory.
Code on WagesOne definition of wages, paid on time
A single definition of "wages" applies across the codes; if excluded allowances exceed 50% of total pay, the excess counts as wages. For a monthly wage period, wages are due before the seventh day of the following month. Minimum wages apply to all employees.
Social SecurityFixed-term staff and gratuity
Fixed-term employees get the same benefits as permanent staff in proportion to service, including gratuity after one year rather than five. This matters for contract-to-hire and long engagements.
OSH Code · Ch. XIContract labour, now inside the OSH Code
The Contract Labour (Regulation and Abolition) Act 1970 has been folded into the OSH Code. Its contract-labour chapter applies at 50 or more contract workers (previously 20), allows a single licence covering several states, bars contract labour in an establishment's core activities with listed exceptions, and makes the principal employer pay wages if a contractor defaults.
GST18% on manpower supply, forward charge
Staffing services fall under SAC heading 9985 (for example 998513 contract staffing, 998514 temporary staffing) at 18% GST under CBIC Notification 11/2017-CT (Rate). Tax is charged on the full invoice value, including the salary component. Reverse charge applies to security personnel from non-corporate suppliers, not to IT staffing from a company like XcellHost.
DPDPYour data, handled as a processor
Under the Digital Personal Data Protection Act 2023 and its Rules notified in November 2025 (phased in), engineers process personal data only on your instructions. Our contract sets out access, logging, breach reporting to you and deletion. See vDPO for your own DPDP programme.
Sources: Ministry of Labour & Employment / PIB release on the labour codes' commencement (21 Nov 2025); OSH Code 2020 Chapter XI (sections 45, 47, 57); Code on Wages 2019 (sections 2(y), 17); reports of central rules notified in May 2026; CBIC Notifications 11/2017-CT (Rate) and 13/2017-CT (Rate) as amended by 29/2018; DPDP Act 2023 and DPDP Rules 2025. State rules vary and transitional provisions apply. For orientation only — not legal or tax advice.