News

New labour codes: Indian companies face higher wage expenses; manpower costs may increase 5-15% across sectors

Indian companies anticipate a 5-10% rise in wage bills due to new labour codes, impacting benefits like gratuity and overtime. Labour-intensive sectors and MSMEs face the steepest increases. While employers may see higher costs, employees are set to gain as wages cannot be reduced. The government expects compliance burdens to offset employer expenses.