The central government rules for the new labour codes which were notified a few days back (May 8, 2026) stated that contractual employees of a company (those not on the company’s payroll) have to be given a minimum of 2% annual salary increment.
Rule 185 of Occupational Safety, Health and Working Conditions Code (OSHWC) Central Rules, mentioned that: “ Annual increment of regular worker of a contractor - A worker who is regularly employed by the contractor for any activity and employment of such worker is governed by mutually accepted standards of the condition of employment shall be such that such worker gets an annual increment of not less than two percent of their wages.”
