The 4 Labour Codes, What Changed (Effective 21 November 2025)
India's four new Labour Codes, the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health & Working Conditions (OSH) Code: came into force on 21 November 2025, consolidating 29 central labour laws into four.
What this means for Delhi employers:
- The Codes now sit above many existing Delhi state laws. Several state acts (Shops & Establishments, Professional Tax administration, Labour Welfare Fund) continue to operate, but increasingly within the framework of the Codes.
- "Wages" is now defined uniformly: basic + DA + retaining allowance must be at least 50% of total remuneration, which changes PF, gratuity and bonus calculations for most salary structures.
- Appointment letters are now mandatory for every employee.
- Important: the Codes are in force and their principal rules were notified in May 2026; some Delhi state-level rules are still being aligned. During this transition, employers should comply with both the existing Delhi acts and the new Codes, we track both so you stay covered.
Content current as of June 2026. Labour Code rules are evolving; we update these guides as new notifications are issued.
Delhi-Specific Regulations
1. No Professional Tax in Delhi
Delhi is one of the few states/UTs in India that does not levy Professional Tax. This means employers in Delhi do not need to deduct PT from employee salaries. However, if the company has branches in Haryana (Gurgaon) or UP (Noida), PT may apply based on those state rules.
2. Delhi Shops and Establishments Act, 1954
- Registration: Within 30 days of commencement with District Labour Commissioner
- Working hours: Maximum 9 hours/day, 48 hours/week for adults
- Overtime: Twice the ordinary rate of wages
- Rest interval: Half hour after 5 hours of work
- Opening/closing hours: Between 9 AM and 9 PM (can be extended to 11 PM with permission)
- Weekly holiday: Sunday (or alternative day notified)
- Leave: 15 days earned leave per year, 12 days sick leave
- Festival holidays: As per Delhi government notification
3. Delhi Minimum Wages
Delhi minimum wages are among the highest in India. Categorised by skill level:
| Category | Monthly Minimum Wage (Approx.) |
|---|---|
| Unskilled | ₹17,494 |
| Semi-Skilled | ₹19,279 |
| Skilled | ₹21,215 |
| Highly Skilled/Clerical | ₹23,258 |
Note: Rates are revised periodically. Always verify current rates with Delhi Labour Department.
4. Delhi Labour Welfare Fund
Delhi does operate a Labour Welfare Fund, administered by the Delhi Labour Welfare Board, and establishments registered under the Delhi Shops and Establishments Act, 1954 fall within its scope. Contributions are half-yearly, taken on the register as on 30 June and 31 December. Published contribution amounts for Delhi disagree across sources, so confirm the figure in force with the Delhi Labour Welfare Board before you deduct or file.
Central Laws Applicable in Delhi
- EPF: Standard 12%+12% for eligible establishments
- ESIC: 3.25% employer + 0.75% employee
- Payment of Bonus: 8.33% to 20%
- Payment of Gratuity: After 5 years continuous service
- Maternity Benefit Act: 26 weeks paid leave
- Equal Remuneration Act: Equal pay for equal work
Delhi Compliance Calendar
| Compliance | Frequency | Due Date |
|---|---|---|
| PF Payment | Monthly | 15th of following month |
| ESIC Payment | Monthly | 15th of following month |
| TDS Payment | Monthly | 7th of following month |
| TDS Returns | Quarterly | End of month following quarter |
| Bonus Payment | Annual | Within 8 months of FY end |
Note: Delhi does not levy Professional Tax. Labour Welfare Fund is separate - the Delhi Labour Welfare Board does operate a Fund, with half-yearly contributions. Confirm the current amount with the Board.
NCR Multi-State Compliance
Many Delhi-based companies have employees across the NCR region:
| Location | Professional Tax | LWF | Shops Act |
|---|---|---|---|
| Delhi | Not applicable | Delhi LWF, half-yearly | Delhi Shops Act 1954 |
| Gurgaon (Haryana) | May apply | Haryana LWF | Haryana Shops Act |
| Noida (UP) | Not currently levied | UP LWF | UP Shops Act |
| Faridabad (Haryana) | May apply | Haryana LWF | Haryana Shops Act |
Penalties for Non-Compliance in Delhi
| Violation | Penalty |
|---|---|
| Non-registration under Shops Act | Fine up to ₹50,000 |
| Minimum wage violation | Fine up to ₹50,000 + imprisonment up to 5 years |
| Late PF payment | 12% p.a. interest + damages |
| Working hours violation | Fine as per Delhi Shops Act |
FAQs, Delhi Labour Compliance
Is Professional Tax applicable in Delhi?
No, Delhi does not levy Professional Tax. This reduces the payroll compliance burden for Delhi employers. However, if you have employees in Gurgaon (Haryana) or other states, PT of that state may apply.
What are the Delhi minimum wages?
Delhi has among the highest minimum wages in India, ranging from approximately ₹17,494 (unskilled) to ₹23,258 (highly skilled) per month. Rates are revised periodically by the Delhi government.
Is LWF applicable in Delhi?
Yes. The Delhi Labour Welfare Board administers a Labour Welfare Fund covering establishments registered under the Delhi Shops and Establishments Act, 1954. Contributions are half-yearly, on the register as on 30 June and 31 December. The amount currently in force is not consistently reported across published sources, so confirm it with the Board before deducting or filing.
What Shops Act registration is needed in Delhi?
All shops and commercial establishments in Delhi must register under the Delhi Shops and Establishments Act, 1954 within 30 days of commencement. Registration is with the District Labour Commissioner.
How does HRTailor handle Delhi NCR compliance?
HRTailor manages Delhi compliance (Shops Act, PF, ESIC, TDS) and multi-state compliance for NCR operations. We handle the different rules for Delhi, Haryana, and UP employees from a single platform.
Delhi NCR Compliance Made Simple
HRTailor manages multi-state compliance across the NCR region.
Call: +91-22-4896-7640