New Labour Code: Centre Implements Mandatory 7th-Day Salary Deadline for IT and ITES Employees

The central government's newly implemented labour code has introduced a major reform for the information technology (IT) and IT-enabled services (ITES) sector, mandating that employee salaries must be disbursed by the 7th of every month.

According to the notification issued on November 21, the salary disbursement rule applies exclusively to IT and ITES companies, making it compulsory for employers to release monthly wages no later than the seventh calendar day.

New Labour Codes

The Ministry of Labour & Employment introduced a reform wherein 29 existing labour laws have been consolidated into four major codes:

• Code on Wages
• Industrial Relations Code
• Code on Social Security
• Occupational Safety, Health and Working Conditions Code

"The implementation of the four Labour Codes addresses the long-pending need to move beyond colonial-era structures and align with modern global trends. Together, these codes empower both workers and enterprises, building a workforce that is protected, productive and aligned with the evolving world of work, paving the way for a more resilient, competitive and self-reliant nation," the ministry said in a press release.

Equal Pay and Workplace Reforms

In addition to timely salary payments, the new labour codes also talk about several progressive measures, including equal pay for equal work, A ban on gender-based wage discrimination & permission for women to work night shifts, subject to safety provisions. By bringing these updates, the government expects to create more inclusive employment opportunities, particularly in the tech and services sector.

Compliance and Employer Obligations

Under the revised rules, IT and ITES employers are now legally required to ensure salary credits are completed by the 7th of each month. Non-compliance may attract penalties and regulatory action. The salary mandate also extends under similar provisions to fixed-term employees, contract staff, gig workers, and platform workers, strengthening labour rights beyond traditional employment models.

Additional Employee Benefits

According to PIB, the new labour codes introduce several supporting measures aimed at improving workplace standards, including the social security benefits. Mandatory appointment letters Structured frameworks for resolving disputes related to payroll, harassment, and discrimination