CXOs Divided: Labor Codes Bring Mixed Bag of Compliance Savings, Wage Hikes
Business
M
Moneycontrol•28-01-2026, 07:07
CXOs Divided: Labor Codes Bring Mixed Bag of Compliance Savings, Wage Hikes
- •A Moneycontrol-Deloitte CXO Survey of 46 executives reveals a divided opinion on the impact of new labor codes.
- •37% of CXOs believe compliance simplification roughly offsets cost increases, while 35% feel the codes have been net negative due to increased manpower costs.
- •Key changes in the new codes include universal minimum wages, gender equality, standardized wage definition, and social security for gig workers.
- •Labour Secretary Vandana Gurnani emphasized significant compliance reduction and simplification, benefiting MSMEs.
- •Major tech companies like TCS, Infosys, and HCLTech reported substantial one-off exceptional charges in Q3 due to changes in the definition of "wages" impacting PF and gratuity calculations.
Why It Matters: India's CXOs are split on new labor codes' financial impact, citing both compliance savings and wage hikes.
✦
More like this
Loading more articles...
