India bundles labor laws, raises provident fund cap to ₹25,000
Big changes are underway for contract jobs in India. The government has bundled 29 central labor laws into four new codes, including the Code on Wages.
One headline change: the provident fund wage cap jumped from ₹15,000 to ₹25,000 in 17 September 2026, which means companies hiring at minimum wage will see higher costs.
Wage redefinition raises staffing agency costs
The new rules also redefine what counts as "wages," so if allowances and other excluded parts of pay add up to more than half your pay, the amount above that half is treated as wages when calculating things like provident fund contributions.
This bumps up costs for staffing agencies and pushes them to get smarter about compliance and payroll tech.
On the bright side, these reforms might help bring more informal jobs into the formal sector, opening doors for workers and giving savvy firms a chance to shine if they can handle big teams and complex rules.