The National Floor Wage sets a uniform minimum, aids labour cost planning, and digital payments improve transparency and global compliance for exporters
NEW DELHI
India’s newly notified Labour Codes are being seen as a strong support system for the country’s export-driven industries. Sectors such as textiles, garments, leather, electronics, gems and jewellery, pharmaceuticals, auto components, and IT-enabled services are expected to benefit greatly. The government has combined 29 older labour laws into four simpler Codes, making it easier for industries to follow rules while also protecting workers’ rights.
A major improvement is the introduction of one standard meaning for “wages.” Earlier, different laws used different definitions, which caused confusion for companies working across states. With a uniform definition now in place, payroll calculations for social security, bonus, and gratuity become easier and clearer.
The National Floor Wage brings another big change. It sets a minimum benchmark that no state can go below, helping companies plan their labour costs without worrying about regional differences. Digital wage payments have also been encouraged, making employee payments more transparent and allowing exporters to maintain clear records for global audits.
The Codes also ban gender-based discrimination in hiring and salaries, bringing Indian practices closer to international standards. Fixed-term employment has been recognised, allowing companies to hire for specific periods during peak demand while still giving workers all legal benefits. This is crucial for industries that face changing global order cycles.
The threshold for government approval for layoffs, retrenchment, or closures has been raised from 100 to 300 workers, giving firms more flexibility during market ups and downs. Simplified compliance, single registrations, unified returns, and digital record-keeping further reduce administrative burdens.
With inspector-cum-facilitators, random digital inspections, third-party audits, and the option to settle minor offences quickly, the Labour Codes aim to build a smoother, more supportive environment for India’s export sector.
