Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreExplore past issues of BCA Journal & indulge in a treasure trove of high-quality professional content across format of print, videos & learning events from the BCAS stable.
Learn More
India's new Labour Codes, effective November 2025, introduce a standardized "Wages" definition that fundamentally alters corporate liabilities. If excluded allowances exceed 50% of an employee's Cost to Company, the excess is legally deemed "Wages," drastically increasing the calculation base for statutory benefits like gratuity and provident fund. Furthermore, fixed-term employees now qualify for pro-rata gratuity after just one year. Under Ind AS 19, these structural changes constitute a "Plan Amendment". Consequently, companies must immediately recognize the heightened obligations as a Past Service Cost in their Profit & Loss statements, directly reducing net profit, earnings per share, and net worth.
The enactment of the 4 new Labour Codes, the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020, and the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 represents the most significant structural reform in India’s employment history. These codes came into effect from November 21, 2025, which will consolidate and simplify 29 central labour laws into a unified framework. However, for the financial community specifically Chief Financial Officers (CFOs), auditors, actuaries, and institutional investors, the implications extend far beyond mere regulatory compliance. These reforms
