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New labour code benefits effective nationwide from Nov 21 2025 even without state notifications
India
Published on 15 May 2026
Full and final dues must land in two working days
Although states may not yet have notified all rules under India’s new Labour Code framework, several provisions are already enforceable from November 21, 2025. Employers can’t wait for state notifications to implement key employee entitlements such as revised “wages” that reshape statutory payment calculations, and faster full-and-final settlements plus annual leave encashment timelines. This means payroll and HR systems may need urgent updates nationwide, affecting gratuity, leave encashment, overtime and notice pay computations.
- Core Labour Code provisions are treated as effective from November 21, 2025
- Full and final settlement must be paid within two working days
- Annual leave encashment timelines are also already applicable
- Revised “wages” definition changes bases for statutory payments
- Impacts gratuity, leave encashment, overtime and notice pay calculations
- Companies may face compliance gaps even before state rule notifications
#annual leave encashment #full and final settlement #labour code #employee benefits #wages definition
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times