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India Employment Law & Payroll: Country Guide
India's 2026 Labour Codes: 4 codes replacing 29 laws, '50% Wage Rule' raising statutory costs 5-15% per employee.
Ahmad Yusuf · Founder & Managing Director, Remvix· July 11, 2026· 1 min read
Key takeaways
- 4 Labour Codes replace 29 laws, effective 21 Nov 2025.
- '50% Wage Rule': est. +5-15% statutory cost per employee.
- Exit settlement: wages within 2 working days.
India's 2026 Labour Codes consolidate 29 laws into 4 codes. The single biggest payroll impact is the '50% Wage Rule': if allowances exceed 50% of CTC, the excess is added back to the Provident Fund and Gratuity wage base, raising statutory costs an estimated 5-15% per employee.
For the full breakdown, see India Employment Law & Payroll: The Complete Guide.