New Labour Codes: Pending Wages Due in 2 Days, Double Pay for Overtime, Monthly Salary by 7th

The new labour codes mandate that pending wages of employees must be paid within two days of leaving service, and overtime work must be compensated at double the wage rate. The monthly salary must be paid by the 7th of the next month. These provisions consolidate 29 labour laws into four codes; the government says its priority is to provide social security to workers, and the new labour codes will benefit employees and reduce problems for industries.

• ⚖️Wage Timelines

  Pending wages must be settled within two days of job exit, and monthly salary must be paid by the 7th of the subsequent month.

• 💰Overtime Compensation

  The labour codes mandate double pay for overtime work performed by employees.

• 📜Legal Consolidation

  Twenty-nine existing labour laws have been consolidated into four comprehensive labour codes to streamline regulations.

Labour Codes (2020)

A set of four consolidated laws passed by Parliament in 2020 to subsume 29 existing central labour laws. The four codes are: The Code on Wages, 2019; The Industrial Relations Code, 2020; The Occupational Safety, Health and Working Conditions Code, 2020; and The Code on Social Security, 2020.

Concurrent List (Seventh Schedule)

Labour is a subject under the Concurrent List (List III) of the Constitution, meaning both the central and state governments can legislate on it. However, central laws typically provide the framework, with states responsible for detailed rules and enforcement.

Minimum Wage

The lowest remuneration that employers are legally required to pay workers. The Code on Wages, 2019, aims to universalize the concept of minimum wage across all sectors and workers.

• Data: Pending wages to be paid within 2 days of job termination.
• Nodal Body: Ministry of Labour and Employment (Central) and State Labour Departments.
• Legal Point: Consolidation of 29 labour laws into 4 codes.

1. Q1Hard

   Consider the following statements regarding the new labour codes:

   1. 1.Pending wages must be paid to an employee within seven days of resignation or termination of service.
   2. 2.The codes mandate that overtime work should be compensated at double the ordinary rate of wages.
   3. 3.The four labour codes have been formulated by consolidating twenty-nine existing central labour laws.

   Which of the statements given above is/are correct?

   • AOnly 1
   • BOnly 2
   • CBoth 2 and 3
   • DAll three
2. Q2Medium

   According to the provisions discussed in the news, by which date of the following month must the monthly wages be paid to an employee?

   • A5th
   • B10th
   • C7th
   • DLast day
3. Q3Medium

   What is a key challenge in the implementation of the new labour codes as highlighted in the article?

   • AThe fact that about 90% of labour law implementation happens at the state level.
   • BResistance from international organizations.
   • CThe codes are not applicable to the private sector.
   • DLack of funding from the central government.

• Original27 October 2026 · Read story