Labour Law Insights: July 2026

Labour welfare and policy development

• The Labour Welfare Organisation, Ministry of Labour & Employment, Government of India, has launched the Financial Assistance for Education to the Wards of beedi/cine/IOMC/LSDM Workers Scheme to improve educational access for children of workers in the beedi, cine, iron ore, manganese and chrome ore mines, and limestone and dolomite mines sectors through financial assistance provided via the National Scholarship Portal (NSP).
• The Government's is increasingly focusing on digital governance, social security expansion, workforce formalisation, employment generation, skills development, and future-of-work readiness. From e-Shram's 31.78 crore worker registrations and NCS's 10.05 crore+ mobilised opportunities to India's leadership of the BRICS Employment Working Group, the initiatives indicate a broader shift towards technology-enabled labour market governance and integrated welfare delivery. Employers should monitor these developments as they may influence future policy reforms relating to social security coverage, digital employment services, skill development and workforce formalisation.

Central Labour Code updates

• The constitution of the Central Advisory Board underscores the Central Government’s commitment to strengthening the institutional framework under the Code on Wages, 2019 and advancing labour law reforms. As a key statutory body, the Board will support wage policy formulation and implementation, making it important for employers to monitor its future recommendations and guidance for potential regulatory and policy implications. and guidance for potential regulatory and policy implications.
• Employers in the mining sector should review and update their health surveillance, safety and vocational training frameworks to comply with the DGMS notifications under the OSHWC (Central) Rules, 2026, including requirements relating to medical examinations, training standards, infrastructure, trainer qualifications, allowances and documentation. standards, infrastructure, trainer qualifications, allowances and documentation.
• The Office of the Central Chief Labour Commissioner has launched a three-month Special Drive from 1 June 2026 to 31 August 2026. The Special Drive underscores the Government’s focus on strengthening labour law enforcement through the timely disposal of cases and statutory claims. Employers should review compliance practices and address pending claims to reduce the risk of disputes and regulatory scrutiny.

State Labour Code updates

• Employers operating in Andhra Pradesh should proactively assess the impact of the newly notified Code on Wages Rules, 2026 and Code on Social Security Rules, 2026 on their existing employment and compliance practices. Key focus areas may include wage structuring, payroll processes, social security and gratuity administration, maternity benefit compliance, maintenance of statutory records and registers, filing obligations, establishment registrations, and overall workforce data management to ensure readiness for the revised regulatory framework.
• The publication of draft Rules under the Code on Wages, Industrial Relations Code and Code on Social Security reflects West Bengal’s delayed but prominent effort towards implementation of the Labour Codes. Organisations may consider evaluating existing payroll structures, wage calculation methodologies, statutory registers and records, employee benefit administration processes, trade union engagement mechanisms and internal compliance systems. Early assessment of the proposed requirements will help employers identify implementation gaps and prepare for a smoother transition once the Rules are finalised and brought into force.

Statewise updates

• Employers operating in West Bengal should review bonus payment obligations well in advance of the festive season and initiate discussions with employee representatives to ensure timely disbursement and minimise the risk of industrial disputes.
• Employers operating in Chhattisgarh should assess the impact of the revised threshold and working time provisions on their workforce management practices. Establishments employing > 20 employees covered by the legislation may review shift scheduling, overtime practices and employee attendance systems to align with the revised limits. Employers intending to engage women employees during night shifts should closely monitor any conditions or safeguards subsequently prescribed by the State Government and ensure that workplace policies and safety measures are updated accordingly.
•  Maharashtra has introduced the Gig and Platform Workers Rights and Protection Bill, 2026. The proposed Bill as a private member's bill introduced in the Maharashtra Legislature goes beyond the social security framework envisaged under the Code on Social Security, 2020 by introducing additional employment-related protections for gig and platform workers, including fair wage requirements, algorithmic transparency, deactivation safeguards and welfare fund contributions. If enacted, it could materially expand the compliance obligations of platform-based businesses operating in Maharashtra and signal a broader shift towards state-level regulation of the gig economy.
• The Government of Tripura has issued a notification permitting the submission of self-attested documents in lieu of notarised ones. The notification is a business facilitation measure aimed at reducing documentation requirements and expediting regulatory approvals under the Factories & Boilers Organisation. Employers and industrial establishments in Tripura may benefit from reduced administrative burden and faster processing of applications relating to factories and boilers.
• Entities must regularly monitor minimum wage notifications relevant to their state and employment category to ensure adherence to legal requirements. Kindly refer to the notifications for more details on rates and applicability period and employments.

EPFO updates

• EPFO has retained the 8.25% interest rate on EPF accumulations for FY 2025-26, reaffirming its commitment to providing stable returns to subscribers and supporting long-term retirement savings. While the notification does not create additional employer compliance obligations, employers may communicate the declared rate to employees and assist them in tracking interest credits, which will be reflected in EPF passbooks after EPFO completes the crediting process. The EPFO has extended the due date for filing the Electronic Challan cum Return (ECR) for the wage month December 2025. This extension provides timely relief to employers grappling with system-related challenges during year-end filings. By temporarily relaxing compliance timelines and waiving penal provisions, the EPFO demonstrates responsiveness to operational constraints faced by establishments. Such measures help ensure accurate, complete, and stress-free filing, fostering improved compliance culture while reducing unintentional defaults due to technical disruptions. The decision also reinforces the EPFO’s commitment to maintaining a balanced and employer friendly regulatory environment, especially during peak filing periods.
• The Employees' Provident Fund Organisation (EPFO) has issued instructions to all zonal and regional offices to ensure prompt credit of EPF interest at the rate of 8.25% for FY 2025-26 through the newly migrated CITES 2.01 system. The circular aims to accelerate the credit of EPF interest for FY 2025-26 by expanding approval responsibilities to AOs and EOs, reducing processing bottlenecks and supporting a smoother transition to the CITES 2.01 platform. While it does not impose additional employer obligations, it is expected to enable faster updating of member balances and timely credit of interest in EPF accounts. credit of interest in EPF accounts.
• The operationalisation of the India-UK Social Security Agreement is a significant step towards reducing dual social security contributions and assignment costs. Eligible detached workers can continue contributing to their home country’s social security system for up to 60 months, subject to obtaining a Certificate of Coverage. Employers should assess assignment structures to avail the exemption, which is expected to improve cost efficiency, social security coordination and workforce mobility between India and the UK. security coordination and workforce mobility between India and the UK.
• The introduction of the Samadhan Setu Portal reflects the EPFO's continued focus on digitisation and streamlined issue management. By replacing the existing Issue Tracker Portal with a centralised and automated platform, the EPFO aims to improve accountability, reduce duplication of requests, and facilitate quicker resolution of technical issues across field offices. The circular is primarily administrative in nature and does not introduce any additional compliance obligations for employers or employees. However, it is expected to enhance operational efficiency within the EPFO by establishing structured reporting protocols, improving documentation standards, and enabling more effective coordination between field offices and the IS Division for resolution of technology-related issues.

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Labour Law Insights: July 2026

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