Companies must pay last month's salary within 2 days of exit

Business Mar 26, 2026

Starting April 1, 2026, Indian companies have to pay all pending salaries and bonuses within two business days of your last day, whether you quit, get laid off, or are let go.
This new rule (part of the Code on Wages) is meant to end those long waits for final payments that used to drag on for weeks or even months.

Impact on businesses and employees

To keep up, companies will need to speed up their payroll and clearance processes, especially in fast-moving sectors like IT and startups, where people switch jobs often.
If businesses adapt well, this could make life a lot easier for employees planning their finances and reduce disputes over delayed payments.