Government notifications, labour law amendments, ESIC/EPFO updates, and regulatory changes across India.
Latest government notifications, statutory updates, EPFO/ESIC changes, and labour law compliance news. Real-time alerts and official circulars affecting organisations across India.
Ministry extends Labour Code implementation deadline to June 15, 2026. Extended compliance window allows organisations additional time for system readiness. Penalties waived for Phase 1 compliant entities.
Category: Labour Code Implementation | Source: Ministry of Labour & Employment
Update Details:
Government announces Phase 2 implementation with extended compliance timeline:
• New effective date: June 15, 2026 (previously April 1)
• Phase 1 compliant entities: Zero penalties for transition period
• Mandatory implementation for all states and sectors
• Industrial Relations provisions: Priority focus for Q2 2026
Current Compliance Status:
• 75% of large organisations system-ready as of Jan 2026
• 45% of MSME sector completed code implementation
• 3,000+ companies submitted Phase 1 compliance reports
• State labour departments: Audit schedule finalised
Critical Action Items for Phase 2:
• Final system audit and integration testing (by April 30)
• Employee communication on new wage codes (by May 31)
• Payroll reconciliation and retroactive adjustments
• Union notifications for Industrial Relations Code
• Safety committees and occupational health protocols
Late Compliance Penalties (Effective June 16):
• First 30 days non-compliance: ₹10,000-25,000 per day
• Continued non-compliance: ₹50,000-2 lakh fine + criminal liability
Official Source: Ministry of Labour & Employment labour.gov.in
EPFO modifies EPS pension calculation. Minimum pension increased to ₹2,500/month. New formula provides 50% higher retirement benefits. All members eligible for recalculation.
Category: EPFO Pension Benefits | Source: EPFO Directorate
Update Details:
Employees' Provident Fund Organisation announces enhanced pension structure:
Key Changes Effective April 1, 2026:
• Minimum pension: ₹2,500/month (increased from ₹1,000)
• New formula: (Average monthly salary × Service years × 50%) ÷ 12
• Maximum pension cap increased to ₹7,500/month
• Family pension coverage enhanced to 60% of member pension
Eligibility for Enhanced Benefits:
• Minimum 10 years of continuous service
• Members aged 55+ can claim immediately
• Early pension option available from age 50
• Widow and dependent benefits increased
Employer Action Required:
• Verify member salary history in EPS records
• Update records for service year computation
• Process pension recalculations for eligible members (by May 31)
• Notify employees of pension enhancement
Recalculation Process:
• EPFO automatic recalculation by June 30, 2026
• Back-adjusted benefits payable from April 1
• Member portal will show new pension amount
Contact for Verification: EPFO Pension Support: 1800-118-111
Official Source: EPFO Portal epfindia.gov.in
ESIC doubles maternity benefit coverage to ₹1 lakh for normal delivery, ₹1.5 lakh for caesarean. Enhanced antenatal and post-natal care benefits added. Applicable from January 15, 2026.
Category: ESIC Maternity Benefits | Source: Employees' State Insurance Corporation
Update Details:
ESIC announces significant expansion of maternity and child welfare benefits effective January 15, 2026:
Enhanced Maternity Coverage:
• Normal delivery cash benefit: ₹1,00,000 (increased from ₹50,000)
• Caesarean delivery benefit: ₹1,50,000 (increased from ₹75,000)
• Antenatal medical care: 4 free checkups (previously 2)
• Post-natal care period: Extended to 90 days (from 60 days)
• New-born child vaccination: Full coverage (₹10,000)
Eligibility Requirements:
• Continuous employment for 70+ days before delivery
• Valid ESIC registration at delivery
• Medical certification from ESIC-empanelled hospital
• Claims to be filed within 90 days of delivery
New Additional Benefits:
• Lactation mother allowance: ₹500/month for 6 months
• Childcare facility reimbursement: ₹5,000/month
• Adoption assistance: ₹50,000 for adoptive mothers
• Surrogate mother coverage: ₹2 lakh (new)
Employer Communication Required:
• Notify eligible female employees of enhanced benefits
• Update employee handbooks and policies
• Maintain records of entitled employees
• File notifications with ESIC regional office
Claim Process:
• Online claim filing through member portal
• Proof of delivery and hospital documentation
• 30-day claim settlement timeline
Official Source: ESIC Portal esic.gov.in
All 28 states notify 8-12% minimum wage increases effective April 1, 2026. Daily rates range from ₹370-₹580. Immediate payroll system updates required.
Category: Statutory Minimum Wages | Source: State Labour Departments & MoLE
Update Details:
Significant minimum wage hikes announced across all Indian states for FY 2026-27:
Representative State-Wise Increases:
• Gujarat: ₹342/day → ₹385/day (+12.6%)
• Maharashtra: ₹405/day → ₹455/day (+12.3%)
• Karnataka: ₹385/day → ₹425/day (+10.4%)
• Tamil Nadu: ₹370/day → ₹410/day (+10.8%)
• Uttar Pradesh: ₹350/day → ₹395/day (+12.9%)
• Telangana: ₹365/day → ₹405/day (+11.0%)
Highest Minimum Wage States:
• Himachal Pradesh: ₹580/day (highest in India)
• Haryana: ₹550/day
• Punjab: ₹530/day
Critical Compliance Deadlines:
• February 28, 2026: Payroll system updates complete
• March 31, 2026: Final audit and verification
• April 1, 2026: New rates effective
• May 15, 2026: Compliance certification to labour dept
Mandatory Employer Actions:
• Update payroll software with new minimum wage tables
• Conduct wage audit against revised minimums
• Calculate retroactive adjustments (April 1 onwards)
• Update salary structure documentation
• Issue revised offer letters for below-minimum earners
• Communicate changes to all employees by March 15
• File wage register updates with labour authority
Impact on PF/ESIC Calculations:
• Revised wage will impact PF ceiling calculations
• ESIC contributions may increase for low-wage workers
• Gratuity calculation base amount changes
Penalties for Non-Compliance:
• First violation: ₹5,000-50,000 fine per worker
• Repeat violation: ₹50,000-2 lakh + imprisonment up to 6 months
• Back wage recovery orders possible
Official Sources:
• Ministry of Labour: labour.gov.in
• State Labour Department portals
Ministry mandates enhanced POSH (Prevention of Sexual Harassment) compliance. New IC formation norms, investigation timeline requirements, and penalties up to ₹10 lakh effective immediately.
Category: Workplace Harassment Prevention | Source: Ministry of Labour & Women & Child Development
Update Details:
New enhanced compliance framework under Prevention of Sexual Harassment of Women at Workplace (POSH) Act, 2013:
Mandatory IC (Internal Committee) Requirements (Effective Immediately):
• Minimum 4-member committee for organisations 50+ employees
• At least 50% women representation mandatory
• External ICC member (NGO/legal expert) for smaller firms
• Complete IC overhaul by February 28, 2026
• Training for all IC members (new framework) by March 31
New Investigation Timeline Requirements:
• Initial inquiry completion: Within 7 days of complaint
• Full investigation completion: Within 30 days (extendable to 45 days)
• Interim safety measures: Implement within 48 hours
• Final action report: Within 90 days maximum
Employer Obligations (Updated):
• Conduct mandatory POSH training for all employees (annual)
• Maintain detailed complaint register and investigation files
• Provide safe reporting channels (3+ methods required)
• Ensure zero retaliation against complainants
• Regular compliance audits by external agencies (biennial)
• Quarterly reporting to labour authority
Enhanced Definitions (New):
• Cyber harassment and online abuse included
• Third-party harassment at workplace events
• Contractor and vendor accountability
• Digital communication platform harassment
Penalties for Non-Compliance:
• No POSH policy: ₹5-10 lakh fine + criminal liability
• Non-functional IC: ₹2-5 lakh fine per violation
• Complaint non-registration: ₹3-7 lakh fine
• Retaliation against complainant: ₹5-10 lakh + imprisonment up to 1 year
Compliance Checklist (By March 31, 2026):
• ✓ Review and update POSH policy
• ✓ Reconstitute IC per new norms
• ✓ Appoint external member if applicable
• ✓ Conduct IC training on new procedures
• ✓ Train all employees on updated policy
• ✓ Update complaint channels and procedures
• ✓ File compliance certificate with labour authority
Official Source: Ministry of Labour labour.gov.in
Govt mandates GeM sellers verify labour compliance (minimum wages, EPF/ESIC, PF deposits). Non-compliance leads to GeM registration suspension and ₹2 lakh penalties.
Category: Government Vendor Compliance | Source: Department of Commerce & Ministry of Labour
Update Details:
New mandatory labour compliance verification requirement for all Government e-Marketplace (GeM) registered vendors effective immediately:
Required GeM Compliance Certifications:
• Current minimum wage compliance certificate (issued within 6 months)
• EPF deposit status verification (last 3 months)
• ESIC compliance status (if applicable, last 3 months)
• Proof of timely PF/ESIC deposits with no arrears
• Statutory audit clearance for organisations 100+ employees
• No pending labour law violation orders
Verification Timeline:
• GeM sellers: Submit certificates by February 28, 2026
• Annual renewal: March 31, 2026 and every year thereafter
• Audit period: 12 months (rolling basis)
• Verification: Labour authority cross-check via GeM portal
Consequences of Non-Submission:
• GeM registration suspension (15 days notice)
• Pending orders cancelled (payment withheld)
• Future bidding blocked until compliance
• Penalties: ₹2 lakh per month of non-compliance
• Possible blacklisting for repeat violations
Impact on Order Processing:
• No payment release without compliance verification
• 30-day compliance buffer window after expiry
• Automatic order cancellation if compliance lapses
• Government recovery of advance payments if applicable
Action Required Immediately:
• Obtain latest minimum wage certificate
• Request EPF/ESIC compliance verification from authorities
• Compile all statutory compliance documents
• Upload on GeM seller dashboard before Feb 28
• Set calendar reminders for annual renewal
Benefits of Early Compliance:
• Priority processing of pending orders
• Higher weightage in future tender evaluations
• Government recognition as compliant vendor
Official Sources:
• GeM Portal: gem.gov.in
• Labour Compliance Help: labour.gov.in
Central govt increases national apprenticeship allowance by 15%. Stipends now ₹8,000-12,000/month. Employers eligible for financial incentives. Effective April 1, 2026.
Category: Skills & Apprenticeship | Source: Ministry of Skills Development & NATS
Update Details:
National Apprenticeship Programme announces significant increase in apprentice allowance and employer incentives:
Enhanced Stipend Structure (Effective April 1, 2026):
• Tier-1 cities: ₹12,000/month (₹10,400 previously)
• Tier-2 cities: ₹10,000/month (₹8,700 previously)
• Tier-3 cities: ₹8,000/month (₹6,900 previously)
• Additional skill bonus: ₹2,000-5,000/quarter (new)
Employer Incentive Scheme (New):
• Apprentice engagement incentive: ₹5,000/apprentice/month (up to 2 years)
• Training infrastructure support: ₹2 lakh per facility
• Certification incentive: ₹3,000 per apprentice completing training
• Female apprentice bonus: Additional ₹2,000/month
Eligibility for Employer Incentives:
• Registered on NATS portal before January 31, 2026
• Minimum 5 apprentices enrolled
• Compliance with apprenticeship rules and safety norms
• No pending labour law violations
New Apprenticeship Categories (Expanded):
• Graduation-level apprenticeships (graduate and diploma holders)
• Skill apprenticeships (ITI trades + 100+ new skills)
• Advanced manufacturing apprenticeships
• Digital and IT apprenticeships
Employer Action Required:
• Register on NATS portal (nats.education.gov.in)
• Submit apprenticeship engagement forms
• Enrol apprentices in approved trades
• Maintain attendance and training records
• File monthly allowance disbursement reports
• Claim incentives quarterly via NATS portal
Payment Process:
• Apprentice allowance: Direct bank transfer (monthly)
• Employer incentives: Quarterly reimbursement
• Processing time: 30 days from claim submission
Training Duration:
• Most trades: 6-24 months (varies by skill level)
• Post-training placement: 80%+ placement rate target
• Certification: Nationally recognised credentials
Official Source: NATS Portal nats.education.gov.in
ESIC expands recognition to 300+ occupational diseases including COVID-19 complications, RSI, heat stress. Enhanced compensation and medical benefits. New recognition effective from date of claim.
Category: Occupational Disease Coverage | Source: ESIC & Ministry of Labour
Update Details:
Significant expansion of occupational disease recognition under ESIC schedule. New comprehensive list effective immediately:
Newly Recognized Disease Categories (300+ Total):
• Respiratory conditions: Occupational asthma, silicosis, pneumoconiosis (50+ conditions)
• Musculoskeletal disorders: Repetitive strain injury, carpal tunnel, back injuries (40+ conditions)
• Dermatological: Occupational dermatitis, contact eczema, chemical burns (25+ conditions)
• Auditory & neurological: Noise-induced hearing loss, occupational deafness (30+ conditions)
• Thermal stress: Heat stroke, cold injuries, occupational burns (15+ conditions)
• Infectious diseases: COVID-19 (occupational exposure), blood-borne pathogens (10+ conditions)
• Mental health: Occupational stress, PTSD, burnout disorders (20+ conditions)
• Chemical & biological: Pesticide poisoning, lead exposure, hazmat injuries (50+ conditions)
Compensation Enhancements:
• Medical benefits: Unlimited treatment coverage
• Disability compensation: ₹2-5 lakh based on severity
• Partial disability: ₹10,000-50,000 monthly allowance
• Dependent benefits: ₹1 lakh family pension
• Occupational rehabilitation: Full training costs covered
Claim Eligibility Criteria:
• Minimum 6 months employment with current employer
• Medical evidence linking disease to occupational exposure
• Workplace hazard documentation (duty roster, work environment records)
• Employer's safety compliance status
• Causal nexus established by occupational health specialist
Enhanced Investigation Process:
• ESIC occupational health specialist evaluation
• Workplace hazard inspection by ESIC team
• Medical examination by ESIC-empanelled doctor
• Report within 60 days of claim submission
• Fast-track approval for serious/critical conditions
Employer Documentation Requirements:
• Maintain hazard identification register
• Conduct hazard exposure assessments
• Document health surveillance activities
• Maintain safety equipment records
• File occupational disease register with ESIC
New Medical Facilities Available:
• Occupational health clinics in 5,000+ ESIC hospitals
• Telemedicine consultations with occupational specialists
• Rehabilitation centres for occupational rehabilitation
• Mental health counselling services
Employer Action Required:
• Review workplace hazards against 300+ disease list
• Conduct occupational risk assessment
• Implement preventive measures for identified risks
• Train employees on disease recognition and prevention
• Communicate coverage to all employees by February 28
• Maintain updated occupational disease register
Claim Filing Process:
• Employee or employer files claim with local ESIC office
• Online filing on ESIC member portal
• Medical certificate from recognised doctor
• Workplace verification report from ESIC
• Decision within 90 days
Official Source: ESIC Portal esic.gov.in
Ministry issues comprehensive WFH labour compliance guidelines. Equipment allowance, working hours tracking, occupational safety for remote workers now mandatory. Penalties ₹1-5 lakh.
Category: Employment Law (Remote Work) | Source: Ministry of Labour & Employment
Update Details:
New comprehensive Work From Home (WFH) compliance framework for Indian employers effective immediately:
Mandatory WFH Policy Requirements:
• Written WFH policy approved by management
• Clear designation of WFH-eligible roles (minimum 30%)
• Equipment and software provisions documentation
• Working hours schedule (max 8 hours/day, 40 hours/week)
• Cybersecurity and data protection measures
• Rest day and leave entitlements
• Occupational safety for home workspaces
Equipment & Allowance Requirements (Mandatory):
• Computer/laptop provision or ₹15,000 annual allowance
• Internet connectivity allowance: ₹2,000-5,000/month
• Electricity reimbursement: ₹1,000-2,000/month
• Furniture and ergonomic equipment: ₹10,000-20,000 once
• Software and tool licenses: Employer-provided
Working Hours & Tracking Obligations:
• Documented working schedule (no unspecified hours)
• Attendance tracking (employee self-certification acceptable)
• No requirement for biometric/continuous monitoring
• Right to disconnect: Off-work hours must be respected
• Night work compensation: 25% additional pay (if applicable)
Occupational Safety Requirements:
• Home workspace inspection report (initial & annual)
• Workstation ergonomics assessment
• Eye care provisions (glasses reimbursement up to ₹2,000)
• Health insurance coverage mandatory
• Accident/injury reporting procedures
• Stress management and counselling services
Leave and Benefits Entitlements:
• All statutory leaves applicable (casual, earned, sick)
• Performance bonus on same basis as office workers
• PF and ESIC contributions: Mandatory (no exception)
• Group health insurance coverage mandatory
• Gratuity and severance: Same terms as office workers
Compliance Audits & Verification:
• Annual compliance certification required
• Third-party audits for 100+ remote employees
• Labour department random inspections permitted
• Employee grievance mechanism mandatory
Penalties for Non-Compliance:
• No written WFH policy: ₹1-2 lakh fine
• Non-payment of allowances: ₹500-1,000 per day per employee
• Unpaid leave/benefits violations: ₹2-5 lakh fine + criminal liability
• Excessive monitoring: ₹1-3 lakh fine + employee compensation
Employee Communication Required:
• Provide signed WFH policy by February 28, 2026
• Detail equipment/allowance provisions
• Explain right to disconnect
• Outline health and safety measures
Model WFH Policy Components (To Include):
• Eligibility criteria and designation-wise applicability
• Equipment and allowance details
• Working hours (start time, end time, break schedule)
• Communication expectations and response time
• Data security and confidentiality obligations
• Performance evaluation method
• Disciplinary procedure for WFH violations
• Right to recall to office (max 2 days/week)
• Grievance redressal mechanism
Official Source: Ministry of Labour labour.gov.in
Government mandates annual payroll audits for 100+ employee organisations. Wage structure, benefit calculations, PF/ESIC compliance audit by registered auditors. Penalties ₹5-10 lakh.
Category: Wage Code Compliance | Source: Ministry of Labour & Employment
Update Details:
New mandatory annual payroll audit requirement for organisations 100+ employees under Code on Wages, 2019:
Audit Scope & Components:
• Wage structure and component breakdown (basic, DA, allowances, benefits)
• Minimum wage compliance verification (state-wise)
• PF calculation accuracy (basic+DA determination)
• ESIC calculation correctness
• Income tax TDS compliance
• Gratuity provision and fund valuation
• Leave encashment and bonus calculations
• Statutory deduction accuracy
Audit Requirement Details:
• Organisations 100-249 employees: Annual audit (internal or external)
• Organisations 250+ employees: Mandatory external audit by CA/CS
• Audit timing: By March 31, 2026 (first audit year)
• Audit period: FY 2025-26 and every FY thereafter
• Sample coverage: Minimum 50% of workforce
Auditor Qualifications:
• CA/CS with minimum 10 years experience
• Certificate in wage audit from ICAI/ICSAI (preferred)
• Registered with Labour Department (new requirement)
• No conflict of interest with employer/employees
Audit Report Deliverables:
• Wage structure compliance certification
• PF/ESIC calculation accuracy statement
• Identified compliance gaps and remediation plan
• Employee sample verification results
• Recommendations for process improvements
• Signed auditor certificate (validity 1 year)
Employer Compliance Actions (Immediate):
• Identify and appoint registered auditors by February 15, 2026
• Compile last 3 years payroll records and documentation
• Prepare wage structure documents and calculation sheets
• Gather PF/ESIC/Income Tax records and compliance certificates
• Conduct internal audit/review before formal audit
• Schedule external audit appointment by March 15
Documentation Required for Audit:
• Payroll registers (last 36 months)
• Salary slips (sample of 50% employees)
• PF form 12A, 10, and annual return copies
• ESIC monthly returns and reconciliation statement
• Leave encashment and gratuity registers
• Bonus and incentive calculation documents
• Statutory deduction proof (TDS, professional tax, etc.)
• Employee agreements and offer letters
Common Audit Findings & Corrections:
• Incorrect basic salary determination (impacts PF)
• DA component incorrectly excluded from PF
• Allowances calculation errors
• Bonus calculation not aligned with statutory minimum
• Leave encashment rate errors
• Gratuity calculation formula mistakes
• Missing statutory benefit provisions
Post-Audit Requirements:
• File audit report with labour authority within 30 days of completion
• Address identified compliance gaps by May 31, 2026
• Notify employees of audit findings and corrective actions
• Prepare remediation plan for non-compliance areas
• Corrective wage adjustments (if required) effective April 1, 2026
• Back payment of any shortfalls with interest (if applicable)
Penalties for Non-Compliance:
• No audit conducted: ₹1-2 lakh fine per month
• Audit findings not addressed: ₹2-5 lakh fine
• Incorrect wage payment: ₹3,000-10,000 per employee
• Continued non-compliance: ₹5-10 lakh fine + criminal prosecution
Audit Cost Indication:
• 100-250 employees: ₹30,000-50,000 (professional audit)
• 250-500 employees: ₹50,000-1,00,000
• 500+ employees: ₹1,00,000-2,50,000
Official Source: Ministry of Labour labour.gov.in
Disclaimer: The information provided on this News Wall is for informational purposes and summarizes government updates on labour law, minimum wages, factories act, and compliance matters. This does not constitute legal advice. Organisations must consult with qualified legal and compliance professionals to understand applicability to their specific circumstances, industry, and jurisdiction.
Source: These updates are based on official government notifications, Ministry of Labour circulars, and regulatory announcements. Organisations must verify the latest position with official government portals (MoL website, state labour department notifications, EPFO, ESIC circulars) before taking action.
Compliance Support: For detailed guidance on implementing these updates specific to your organisation, contact RMN for comprehensive compliance assessment and support.
Direct links to Government of India and statutory portals for labour law, EPFO, ESIC, and occupational safety. No third-party or YouTube redirects.
Source: Official Government of India
What you get: Labour law notifications, circulars, amendments, and compliance guidance.
Source: Employees' Provident Fund Organisation
What you get: EPF registration, member services, employer compliance, circulars, and statutory forms.
Source: Employees' State Insurance Corporation
What you get: ESIC registration, benefits claims, medical facilities, employer compliance, and coverage verification.
Source: Central Labour Commission
What you get: Comprehensive database of all central and state labour laws, acts, rules, and amendments.
Source: Gujarat & Other States
What you get: State-wise labour department portals for state-specific notifications, rules, and compliance requirements.
Source: National Apprenticeship Training Scheme
What you get: Registration, training modules, compliance, and apprenticeship certification.
Contact RMN to discuss how we can support your organisation's compliance requirements.
Contact Us