<p>Bengaluru: The country’s top five IT services companies cumulatively took an over Rs 4,900-crore hit in the December quarter due to implementation of the new labour codes that impacted all the firms’ Q3 net profits.</p><p>In November 2025, the government notified the four Labour Codes — the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — consolidating 29 existing labour laws. Since it was implemented in Q3, Tata Consultancy Services reported a Rs 2,128-crore impact, Infosys (Rs 1,289 crore), HCLTech (Rs 948 crore), Wipro (Rs 302 crore), and Tech Mahindra (Rs 272.4 crore) in their December quarter earnings.</p>.China opposes Trump's tariff threat against nations doing business with Iran.<p>Specialist staffing firm Xpheno Co-founder Kamal Karanth said the new labour codes have a wide scope of applicability across sectors, and also coverage across all categories of employees irrespective of levels, wages and compensation. “The new codes, in letter and spirit, intend to simplify interpretation and administration of workforce-related laws and statutory regulations. As a simplified amalgamation of a host of traditional labour laws, the new codes are set to operate in the interest of all employers and employees, while enhancing social security, increasing formalising and easing the compliance management,” he said.</p><p>He added that the key change in pay structure will be driven by the requirement to keep Basic Pay plus DA at a minimum of 50 per cent of CTC. “The popular practice of keeping a low basic pay at 30-40 per cent, to reduce statutory contributions like PF, will now have to be discontinued. Employees cannot anymore park a majority portion of the CTC towards allowances that do not attract statutory contributions. This shift in structure will reflect in the form of a lowered net take home, as statutory deductions are set to increase,” he further said.</p><p>The near-term net impact will be a lowered monthly take home, but with a long-term of future benefits through higher statutory savings.</p><p>CIEL HR MD and CEO Aditya Narayan Mishra said the implementation of labour codes is increasing the overall cost of employment for organisations, which may impact salary hikes.</p>
<p>Bengaluru: The country’s top five IT services companies cumulatively took an over Rs 4,900-crore hit in the December quarter due to implementation of the new labour codes that impacted all the firms’ Q3 net profits.</p><p>In November 2025, the government notified the four Labour Codes — the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — consolidating 29 existing labour laws. Since it was implemented in Q3, Tata Consultancy Services reported a Rs 2,128-crore impact, Infosys (Rs 1,289 crore), HCLTech (Rs 948 crore), Wipro (Rs 302 crore), and Tech Mahindra (Rs 272.4 crore) in their December quarter earnings.</p>.China opposes Trump's tariff threat against nations doing business with Iran.<p>Specialist staffing firm Xpheno Co-founder Kamal Karanth said the new labour codes have a wide scope of applicability across sectors, and also coverage across all categories of employees irrespective of levels, wages and compensation. “The new codes, in letter and spirit, intend to simplify interpretation and administration of workforce-related laws and statutory regulations. As a simplified amalgamation of a host of traditional labour laws, the new codes are set to operate in the interest of all employers and employees, while enhancing social security, increasing formalising and easing the compliance management,” he said.</p><p>He added that the key change in pay structure will be driven by the requirement to keep Basic Pay plus DA at a minimum of 50 per cent of CTC. “The popular practice of keeping a low basic pay at 30-40 per cent, to reduce statutory contributions like PF, will now have to be discontinued. Employees cannot anymore park a majority portion of the CTC towards allowances that do not attract statutory contributions. This shift in structure will reflect in the form of a lowered net take home, as statutory deductions are set to increase,” he further said.</p><p>The near-term net impact will be a lowered monthly take home, but with a long-term of future benefits through higher statutory savings.</p><p>CIEL HR MD and CEO Aditya Narayan Mishra said the implementation of labour codes is increasing the overall cost of employment for organisations, which may impact salary hikes.</p>