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With the labour codes effective from 21 November 2025, wage payment timelines are being discussed widely—especially the salary by the 7th mandate. Below is a structured view of what the Code on Wages states, what earlier rules looked like, and what the Ministry’s statement highlights for IT and ITeS workers.
Quick answer (practical reading)
Monthly wages under the Code on Wages are to be paid before the expiry of the 7th day of the succeeding month. However, Section 17(4) also clarifies that existing wage-payment timelines under other applicable laws continue to operate.
Prior to rationalisation, salary payments were governed by multiple laws, including:
Context: Different establishments faced different timelines depending on headcount, state Shops and Establishments rules, and exit settlements.
| Scenario (prior to 21/11/2025) | Deadline | Applicable Rule/Act |
|---|---|---|
| Regular salary payment (up to 1000 workers) | Within 7 days of the wage period end | Payment of Wages Act, 1936 |
| Regular salary payment (more than 1000 workers) | Within 10 days of the wage period end | Payment of Wages Act, 1936 |
| Resignation/termination settlement | Within 2 working days | Shops and Establishments Act (State-specific) |
| Delay in salary | Can attract a penalty (up to ₹50,000) | Code on Wages, 2019 (when active) |
Note: Applicability can vary based on establishment type, headcount thresholds, and state-specific requirements.
The codes (effective 21 Nov 2025) replace 29 older laws with a consolidated framework on wages, industrial relations, social security and workplace safety. One of the most impactful changes is the mandatory salary payment timeline, aimed at improving transparency, reducing wage disputes, and enhancing financial stability for workers.
For IT and ITeS employees, where vendor, staffing, and project-based deployments are common, this is positioned as a major shift alongside equal benefits for fixed-term IT workers.
NITES stated that fixed-term employees must receive the same benefits as permanent employees for the duration of their contract. It also noted that rules around working hours and overtime become more uniform, while cautioning that misuse of fixed-term roles and consultant classifications could continue unless enforcement is strict.
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