India’s new labour codes are reshaping workplaces fast, with roughly 4 in 5 firms reportedly revising pay structures amid rising compliance and employment costs. Wage growth is cooling as companies recalibrate workforce models. Yet hiring sentiment is improving, especially in tech and emerging sectors, where firms increasingly target urban capability and digital skills.
India’s new labour codes are starting to reflect in hiring trends beyond major metros. Reports show job postings rising as much as 56% in tier III and IV cities, alongside a shift toward work-from-office roles. Women’s job opportunities are expanding faster than men’s, while businesses increasingly view regulatory compliance as a key factor guiding recruitment, particularly in smaller markets.
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Salaried workers are bracing for changes as India’s new labour codes and income tax rules approach implementation. While companies are planning new pay structures, rollouts are delayed until final government notifications. A move toward a fixed-heavy salary mix and higher basic pay could lower current take-home while improving retirement savings over time.
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