The Ministry of Labour and Employment (MoLE) on December 30, 2025, issued the FAQs on Labour Codes.
The following has been stated namely: -
• It has issued FAQs clarifying the implementation of the four Labour Codes, particularly during the transition period, stating that existing rules will continue under Section 6 of the General Clauses Act, 1897, until new rules are notified.
• The FAQs explain the uniform definition of “wages” applicable across all Labour Codes, covering basic pay, dearness allowance, and retaining allowance, while prescribing the 50% cap on allowances, with any excess to be added back to wages for statutory calculations.
• It clarifies that components like ESOPs, performance incentives, and reimbursements are excluded from wages, and that leave encashment is not treated as an allowance under the Code on Wages, 2019.
• The document also provides detailed guidance on gratuity applicability w.e.f. 21 November 2025, events triggering gratuity payment, and its method of calculation, including special cases.
• Further, it clarifies provisions relating to worker definition under the OSH Code, 2020, core and non-core activities, inter-state migrant worker benefits, and continuation of ESI coverage until final rules are framed.
