Reviewed 16 October 2026. The four Labour Codes took effect on 21 November 2025. State rules, notifications and continuing official services still matter; verify the rule that applies to your establishment before changing payroll or filing practices.
What changed nationally
The Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020 came into force on 21 November 2025, according to the Ministry of Labour and Employment. The Ministry’s Labour Codes page currently lists draft Central Rules, while the Codes authorize both central and state rulemaking. Do not assume that every old form, threshold or State service page has already been replaced by one common online process.
Kerala’s Labour Commissionerate continues to publish State-specific services and notifications, including Shops Act registration and renewal, minimum-wage notifications and the current fee schedule. Use that live material alongside the applicable Code, rules, notifications and savings/transition provisions.
Wages and payroll calculations
The Code on Wages’ definition of wages has applied from 21 November 2025, as the Ministry’s FAQ confirms. The Code’s definition is not the same as the statutory minimum-wage rate. Minimum-wage rates and variable allowances depend on the appropriate Government’s notification for the employment, classification, zone and effective period. Kerala’s Labour Commissionerate publishes its current minimum-wage notifications; there is no single verified ₹750-per-day floor rate that can safely be applied to every Kerala employee.
Review payroll components against the statutory definition for each calculation rather than treating basic salary, gross salary, CTC and “wages” as interchangeable. The Ministry’s FAQ states that annual performance-based incentives are not wages for Code calculations and explains the 50% add-back rule for excluded components. Check the full definition and exceptions for the benefit being calculated.
Social-security coverage and current EPFO / ESI instructions
- EPF: EPFO’s current employer FAQ reports that the wage ceiling increased from ₹15,000 to ₹25,000 with effect from 17 September 2026. The applicable membership and contribution treatment still depends on the employee’s membership history, establishment coverage and scheme rules. The same FAQ says the Central Government’s EPS contribution remains capped at 1.16% of wages up to ₹15,000. Check the current EPFO employer portal.
- ESI: The Ministry’s Labour Code FAQ says the currently notified ₹21,000 monthly wage ceiling continues to apply while rules are finalized. Establishment coverage, employee eligibility and notified extensions must still be checked. Use the ESIC portal and current Ministry FAQ.
- Gratuity: The Ministry FAQ says the Code’s wage definition applies to gratuity from 21 November 2025 and confirms the one-year service condition for directly engaged fixed-term employees. Eligibility, service periods, exclusions, payment and tax treatment should be assessed separately.
Kerala establishment registration and minimum wages
The Labour Commissionerate’s current service list covers shops and commercial establishments under the Kerala Shops and Commercial Establishments Act and describes an exception using the now-repealed Factories Act terminology. The Factories Act was repealed and replaced nationally by the OSH Code from 21 November 2025, while the Kerala page still uses that legacy term; verify the current exception with the portal and applicable Kerala rules. The service list gives an initial registration period of 60 days from commencement, lists required documents and a one-day service target, and describes renewal as annual from November with “Auto renewal.” Check the live service and current fee amendment before relying on older articles that give fixed fees, a manual renewal workflow or approval estimates.
Minimum-wage rates are employment-specific. Check the latest Kerala notification for the relevant scheduled employment, worker classification, zone and effective date. Do not assume automatic annual indexation or a uniform State minimum applies to every sector.
Welfare funds: keep the Boards separate
The Kerala Labour Welfare Fund Board and the Kerala Shops and Commercial Establishments Workers Welfare Fund Board are separate bodies. The Labour Welfare Fund Board currently publishes contributions of ₹45 from the employee and ₹45 from the employer per half-year, payable before 15 July and 15 January, for establishments and employees covered by its Act. The Shops Board publishes separate monthly contribution information. Coverage and membership are not interchangeable; check the correct Board, scheme and account before making payroll deductions.
Practical employer review
- Map each establishment, business activity, State/local licence and employee group to the Code and applicable notification.
- Review the Code wage definition and recompute affected payroll benefits from the effective date where required.
- Confirm EPF membership, wage ceiling, ESI coverage and current portal processes with EPFO and ESIC.
- Check Kerala’s current Labour Commissionerate notices for registration, renewal, minimum wages and fee changes.
- Maintain a dated evidence trail for the rule, notification, portal instruction and calculation used for each filing.
Official sources
- Ministry of Labour and Employment: Codes effective from 21 November 2025
- Ministry: Labour Codes and draft Central Rules
- Ministry: Additional Labour Codes FAQ
- Kerala Labour Commissionerate services
- Kerala minimum-wage notifications
- Kerala Labour Welfare Fund Board and Kerala Shops Welfare Fund contribution information
This page is a dated overview, not an individual legal opinion. Before a payroll change or statutory filing, check the latest Gazette notification and the responsible department’s current instructions.