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22 Oct 2026 5 min read
The September 2026 edition of Labour Law Insights highlights key regulatory updates issued by the central and state governments, important social security developments, EPFO and ESIC updates, minimum wage revisions and landmark judicial pronouncements that may impact employers across sectors.
The Ministry of Labour and Employment has opened applications for the academic year 2026-27 under the Shram Kalyan Shiksha Yojana, providing educational assistance to the children of workers employed in specified labour-intensive sectors. The last date for post-matric scholarship applications is 31 October 2026.
The government also continues to strengthen labour market data systems through the National Classification of Occupations (NCO), which supports workforce planning, employment policy, skill development and labour market analysis.
In another social protection initiative, the National Pension Scheme for Traders and Self-Employed Persons (NPS-Traders) continues to provide retirement security to eligible small traders, shopkeepers and self-employed individuals in the unorganised sector.
Several states and union territories have advanced Labour Code implementation:
State governments have introduced several noteworthy reforms:
The Employees’ State Insurance Corporation (ESIC) has introduced a standard operating procedure for compounding offences under the Code on Social Security, 2020, providing a structured mechanism for the resolution of the eligible ESI-related defaults.
The ESIC has also launched SMS-based claim status notifications for insured persons and initiated awareness programmes for mine workers, following the expansion of social security coverage under the Code on Social Security, 2020.
In addition, the ESI Scheme has been extended to additional districts in Madhya Pradesh with effect from 1 October 2026.
Tamil Nadu has extended the permission for shops and establishments to remain open throughout the year for a further three years, subject to prescribed employee welfare and compliance conditions.
A major social security reform this month is the increase in the EPFO wage ceiling from INR 15,000 to INR 25,000 per month, effective from 17 September 2026. The move is expected to expand mandatory social security coverage and strengthen retirement protection for a larger workforce.
Employers have also been encouraged to utilise VISHWAS, 2026, a one-time settlement scheme for the resolution of long-pending EPF damages disputes, available until 28 December 2026.
Two significant Supreme Court (SC) rulings are highlighted in this edition:
Equal pay for equal work cannot be applied mechanically: The SC reaffirmed that pay parity claims must be assessed based on factors such as qualifications, experience, recruitment channel and responsibilities, and cannot be based solely on the similarity of duties.
EPF damages under Section 14B referred to a larger Bench: The SC has referred to a larger Bench the question of whether damages for delayed provident fund contributions under Section 14B of the EPF Act are mandatory or discretionary, a decision that could have significant implications for employers and insolvency proceedings.
September 2026 witnessed significant developments across Labour Code implementation, social security expansion, digital compliance frameworks and employment-related jurisprudence. Employers should proactively assess the impact of these changes on their workforce, compliance systems, payroll processes and employee welfare frameworks to remain aligned with India's evolving labour law landscape.
Ten months after India's four labour codes came into force, employers are applying them across pay, benefits, contract labour, working hours and social security.
In our August edition of Labour Law Insights, key updates include the notification of bonus calculation ceilings under the Code on Wages, 2019; the notification of final rules under certain Labour Codes by the Governments of Andhra Pradesh, Ladakh, and Rajasthan; expanded digitisation efforts by the ESIC; and continued EPFO outreach under the Amnesty Scheme 2026.
In our latest edition of Labour Law Insights, we continue to share updates around the implementation of Labour Codes. In addition, we also have a section on Labour welfare and policy developments talking about new labour welfare rules. Apart from these, the edition covers our regular updates – state-wise labour law releases, EPFO and social security updates, and important judgements. As always, we have provided our insights on each of these updates to help your decision making and compliance.
