Reviewed 16 October 2026. This update reflects official Central and Kerala sources available on that date. The applicable government and rules depend on the establishment and subject matter.
Four Labour Codes are in force
The Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020 took effect on 21 November 2025. The Ministry of Labour and Employment says that the Codes replace 29 central labour laws. Their commencement does not make every employer process identical: the Central or State Government may be the appropriate government, and rules, notifications, schedules and transition provisions remain important.
As checked on 16 October 2026, the Kerala Labour Commissionerate lists draft rules for all four Codes and continues to publish State-specific service instructions. Central Rules published for a Code govern matters where the Union Government is the appropriate government; they do not automatically replace Kerala rules for every establishment. Check the latest Gazette and Labour Commissionerate notice before changing a filing, register or payroll process.
Confirmed changes employers should review
Wages and minimum wage
The Ministry FAQ says the Code on Wages definition of “wages” applies from 21 November 2025. This definition is distinct from the minimum-wage rate. For the Code calculations described in its FAQ, annual performance-based incentives are not wages, and excluded components above the statutory 50% limit are added back in the prescribed manner. Review each wage component against the exact benefit or contribution being calculated.
Minimum-wage rates remain tied to the appropriate Government’s current notification, employment, classification and zone. Kerala’s Labour Commissionerate publishes State notifications. Do not apply a single ₹750-per-day amount or assume automatic annual indexation across every Kerala job.
EPF and ESI
- EPF: EPFO’s current employer FAQ says the wage ceiling increased from ₹15,000 to ₹25,000 with effect from 17 September 2026. Membership and contributions depend on establishment coverage, an employee’s prior membership and the applicable EPF Scheme. The FAQ says the Central Government’s EPS contribution remains capped at 1.16% of wages up to ₹15,000. Check the EPFO employer portal.
- ESI: The Ministry FAQ states that the currently notified ₹21,000 monthly wage ceiling continues while rules are finalized. Apply the Code’s wage definition and check establishment coverage, any State extension and the employee’s eligibility with ESIC.
Gratuity and maternity benefit
The Ministry FAQ says the Code wage definition applies to gratuity from 21 November 2025. It confirms the one-year service condition for directly engaged fixed-term employees; the general five-year condition and statutory exceptions must still be checked against the employee’s circumstances. Use current official guidance for the applicable wage base, payment deadline, cap and tax treatment.
For maternity benefit, the Ministry’s 2026 employer handbook summarizes the 80-day eligibility condition, up to 26 weeks for eligible employees, the ₹3,500 medical bonus where payable, nursing breaks and the creche requirement for establishments with 50 or more employees. ESIC maternity benefit follows its own contribution test and claim route. Assess which chapter applies to each employee; do not promise both benefits or use one claim process for the other.
Kerala processes that still need live checks
The Kerala Labour Commissionerate’s current service list continues to show Shops and Commercial Establishments registration, renewal, minimum-wage notifications and the 2026 fee amendment. It says initial Shop Act registration is generally due within 60 days of commencement, and its current renewal entry describes annual renewal from November with an “Auto renewal” service. Follow the actual portal and applicable rule rather than an old form guide.
The Kerala site also publishes draft rules and other active notices. A change to a Central Code does not by itself answer the current Kerala filing route, fee, local-body tax or welfare-board coverage. Confirm the relevant State notification and Board account for your establishment.
What employers should do now
- List the legal entities, worksites, activities, workforce and locations covered by each payroll.
- Identify the appropriate government and current rules for each Code and State service.
- Reconcile payroll components with the new Code wage definition from its commencement date where applicable.
- Review EPF membership and ceiling treatment, ESI coverage and current contribution records with the responsible portals.
- Check minimum-wage notifications, Shop Act service steps, welfare-fund coverage and local-body requirements from their current official sources.
- Keep a dated record of the Gazette, notification, portal instruction and calculation used for each filing.
Official sources
- Ministry of Labour and Employment: Codes effective 21 November 2025
- Kerala Labour Commissionerate: draft rules and current notices
- Ministry: Labour Codes and Central Rules
- Ministry: Additional Labour Codes FAQ, 16 March 2026
- Ministry: Labour Codes compliance handbook
- Kerala establishment registration and renewal service list
- Kerala minimum-wage notifications
This page is a dated overview, not an individual legal opinion. Check the current Gazette and official department instructions before changing a payroll or compliance process.