Masterclass Series: Computation of Wages & Gratuity

On 21 November 2025, the Ministry of Labour and Employment officially made four major labour codes effective. The Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020, collectively replace 29 (twenty-nine) older central labour laws. The Central Government published the draft central rules for all four codes on 30 December 2025 as well as clarifications by way of code specific frequently asked questions.

Mapping of various components as per the ‘wages’ definition
 

• Decoding the 50% threshold and what is to be included and excluded. 
• How to deal with components not specified in the definition: form v. substance; and
• Treatment of in-kind allowances 
• Scope & applicability of Section 124 of the SS Code
• Calculation of Gratuity and date of applicability
   

Speakers - 

L. Badri Narayanan, Executive Partner, LKS

Noorul Hassan, Executive Partner, LKS

Asish Philip, Executive Partner, LKS

Paritosh Chauhan, Partner, LKS