Companies would have to recognise the increase in gratuity liability arising from new labour codes in their interim financial statements and results for the period ending December 31, the Institute of Chartered Accountants of India (ICAI) has said in its FAQs on the new labour codes.
For MSMEs the transition could mean higher wage bills and tougher compliance -- unless strong handholding follows reports Auhona Mukherjee.
The new labour Codes, notified by the central government in November 2025, have pushed up employee costs for private-sector banks and insurance companies, with these firms reporting higher operating expenses in the October-December quarter (Q3FY26) due to the statutory impact of the new labour Codes.
'In the last one year, we have added more than Rs 1.7 trillion, and we are on track.'
Infosys on Wednesday reported a one-time exceptional hit of Rs 1,289 crore on account of the impact of the implementation of new labour codes, as India's second-largest IT services firm announced its December quarter earnings.
The country's largest IT services company TCS on Monday reported 13.91 per cent decline in December quarter net profit at Rs 10,657 crore. The Tata Group company had posted a net profit of Rs 12,380 crore in the October-December period of FY25 and Rs 12,075 crore in the preceding September quarter.
The government bond yield curve is likely to flatten in the financial year 2027 (FY27) as the Reserve Bank of India (RBI) is expected to ease supply pressure in the ultra-long segment. In FY26 so far, reduced investments by insurance companies and pension funds pushed up yields on ultra-long tenor securities, steepening the curve.
Trade unions have decided to launch a phased, consistent struggle to press for the withdrawal of the labour codes and go on a countrywide general strike in February next year, a statement said on Tuesday. The date of the strike will be announced on 22nd December 2025 in the next meeting of the joint forum of central trade unions, a statement said.
'Companies will need to revisit compensation structures, contracts, staffing models, and human resources system.'
'It will increase the contribution to gratuity, which is something the employer has to give.'
From appointment letters becoming mandatory to gig workers receiving social security to enhanced rights for women and contract labour, the changes reflect India's attempt to balance ease of doing business with stronger worker welfare.
If gratuity is not paid within 30 days of termination, the employer must pay interest as set by the central government.
Understanding severance pay isn't just for those who are losing their jobs
The Calcutta High Court ruled that seeking a new job, even with a competitor, is a basic right and not moral turpitude. The court directed a company to pay an employee's gratuity dues after withholding them on this basis.
Most think tax-saving deductions exist only in the old regime. But the New one quietly retains 40+ ways to ease your tax load
The Supreme Court on Wednesday asked the Jalan-Kalrock consortium, the new owners of cash-strapped Jet Airways, how much have they paid towards dues on account of provident fund and gratuity to the former employees of the troubled airline. The top court made the query while commencing the hearing on a batch of petitions, including the one filed by the Jet Aircraft Maintenance Engineers Welfare Association, against the October 21, 2022 order of the insolvency appellate tribunal NCLAT.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
The Supreme Court on Monday directed uniform pension benefits for all retired high court judges, irrespective of their mode of appointment or tenure, saying "one rank one pension has to be the norm in respect of a constitutional office".
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
A bench of Justices Navin Chawla and Shalinder Kaur rejected the petition by the Indian Army Lieutenant, who served as a 'Troop Leader' of a squadron, against the termination order passed on March 3, 2021, that dismissed him from the Indian Army without pension and gratuity.
The United Forum of Bank Unions (UFBU) on Thursday said its two-day nationwide strike on March 24 and 25 will be observed as scheduled since discussions with the Indian Banks' Association (IBA) over key demands failed to yield any positive outcome. In a meeting with the IBA, all UFBU constituents raised issues, including recruitment in all cadres and a five-day workweek.
Bank unions on Friday deferred their two-day nationwide strike beginning Monday after they received positive assurance from both the finance ministry and the IBA on their demands, including a five-day work week and adequate recruitment in all cadres. The strike call for March 24 and 25 was given by United Forum of Bank Unions (UFBU), an umbrella organisation of nine bank employees' association.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
The law was amended to bring parity between public and private sector employees (including PSUs) after the gratuity limit was raised for central government on similar lines
Bank employees want a five day work week.
The ceiling of gratuity amount under the Payment of Gratuity Act, 1972, has been raised from time to time keeping in view overall economic condition and employers' capacity to pay and the salary of employees, which have been increased in private sector and in PSUs.
Thirty per cent of the firms - mostly big companies - had no ceiling on the gratuity amount.
Some of the proposed policies have been welcomed by pilots and cabin crew, while others have sparked criticism.
The government initiated the process for amendment to the Payment of Gratuity Act, 1972, which applies to establishments employing 10 or more persons.
A bill to raise the ceiling of gratuity for employees to Rs one million (Rs 10 lakh) from Rs 3,50,000 was passed by the Lok Sabha without discussion on Monday.
The Supreme Court has said that teachers are not entitled to payment of gratuity at the end of their service as they cannot be classified as 'employee' under the provisions of Payment of Gratuity Act, 1972.
Gratuity is one of the least understood components of salary. InvestmentYogi explains everything about Gratuity and the tax implications for you.
You will receive this benefit either at the time of retirement or when you resign.
A bill to raise the ceiling of gratuity for employees to Rs one million (Rs 10 lakh) from the current level of Rs 3,50,000 was introduced in the Lok Sabha on Thursday.
Conceding the long-pending demand from around 11 lakh agents, the Life Insurance Corporation of India (LIC) has revised the gratuity payable to agents to Rs 2 lakh from Rs 1 lakh earlier. The revised rates will be applicable retrospectively from April 1, 2007.
The Parliament on Wednesday approved enhancing the gratuity limit for employees from Rs 3.5 lakh to Rs 10 lakh as also the exemption threshold from income tax on it.
The government nod will bring parity between government and private sector employees in enjoying equal gratuity benefits.
The government has brought in changes to the investment pattern for non-government provident funds, and superannuation and gratuity funds, enabling them to invest up to 5 per cent in the units of Category I and Category II alternative investment funds (AIFs), subject to some caveats. The development is part of the central government's strategy to channelise domestic savings and improve their returns to attract more investment in the said sectors. At present, these funds typically invest a minimum 45 per cent in government securities, besides new instruments, such as exchange-traded funds and real estate investment funds, while a portion in equity-related instruments.
Indian carrier Vistara on Monday announced voluntary retirement scheme (VRS) and voluntary separation scheme (VSS) for its permanent ground staff ahead of its merger with Air India, which had announced similar plans for its non-flying permanent staff two weeks ago.
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