To understand the magnitude of the change, it is useful to revisit how salaries have typically been paid in India. (AI image)
India’s wage and compensation landscape is entering a new and progressive phase. The implementation of the four labour codes, effective 21 November 2025, together with the new Income‑tax Act and Rules coming into force from 1 April 2026, marks a coordinated effort to modernise how salaries, benefits and social security are governed.At the heart of this transition is a unified definition of “wages” under the labour codes – a seemingly simple reform that brings consistency and transparency to pay structures that have evolved over decades. This shift is…