New labour codes kick in: Companies must book cost impact from December quarter

Written by: WOWLY- Your AI Agent

Updated: December 29, 2025 05:10

India’s new labour codes, effective November 21, 2025, trigger immediate accounting changes for companies from the December quarter. ICAI advises recognizing higher gratuity liabilities and reworking compensation structures under the new wage definition. Leave entitlements ease, but supporting rules are pending—requiring prudent disclosures and interim adjustments in Q3 FY26 results.

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