Are you a contract worker? Here's why your salary must now go up by 2% every year

Contract workers in India may soon see a mandatory 2% annual salary increase under new central labour code rules. This provision, effective May 8, 2026, targets 'regularly employed' contract staff, potentially reclassifying them and offering enhanced protections. The rule applies to central government-controlled sectors, with states needing to adopt similar measures for wider implementation.

Are you a contract worker? Here's why your salary must now go up by 2% every year
Contract workers in India may soon see a mandatory 2% annual salary increase under new central labour code rules. This provision, effective May 8, 2026, targets 'regularly employed' contract staff, potentially reclassifying them and offering enhanced protections. The rule applies to central government-controlled sectors, with states needing to adopt similar measures for wider implementation.