If your team has anyone in the UK, India, or Singapore, April 2026 is not a month you can ignore. Three jurisdictions moved simultaneously on employment rights updates this month, changing sick pay rules, restructuring how wages must be split, and expanding parental leave entitlements. The EU’s pay transparency deadline is now seven weeks away, and most member states are still catching up. Here’s what changed and what your compliance calendar needs right now.

UK Employment Rights Act 2025: Day-One Sick Pay, A New Enforcement Body, and Payroll Changes Already in Effect

The UK’s Employment Rights Act 2025 has been rolling out in tranches, and April marks the largest cluster of employment rights updates yet. Several changes came into effect in the first two weeks of April, and if you haven’t acted, you’re already behind.

From April 1: The National Living Wage rose to £12.71 per hour for workers aged 21 and over, up from £12.21 — a 4.1% increase affecting an estimated 2.7 million workers directly. If you have any UK employees on or near minimum wage, your payroll figures changed on April 1. (Source: UK Government)

From April 6: Statutory Sick Pay now applies from the first day of sickness absence, removing the previous three-day waiting period. The new weekly SSP rate is £123.25. The lower earnings threshold has also been removed, meaning more employees qualify. And employers must now keep records of statutory holiday entitlement and pay for at least six years. (Source: Baker McKenzie)

Also from April 6: paternity leave and unpaid parental leave became day-one rights, ending the 26-week qualifying period. Any new employee can take them immediately. Whistleblowing protections expanded to cover disclosures about sexual harassment. And recruitment agencies now face joint and several liability for unpaid PAYE income tax and Class 1 National Insurance contributions across their supply chains — a material change for anyone using agency labour.

From April 7: The Fair Work Agency launched as the UK’s new single enforcement body, consolidating National Minimum Wage enforcement, statutory sick pay, employment agency standards, and labour abuse functions. Its remit expands to holiday pay enforcement later in 2026. (Source: CIPD)

For companies using staffing or contractor agencies for UK roles, verify their payroll compliance now. Joint liability for NI means your exposure extends to their failures. The full UK employment law obligations guide covers updated statutory pay rates and the rights timeline for the rest of 2026.

Action item: Confirm your April payroll run applied NLW at £12.71/hr and SSP at £123.25/week from day one. Update holiday record-keeping systems. Ask any UK staffing agencies for their April 6 compliance confirmation in writing.

India Labour Codes Are Live: Employment Rights Updates Change Every Payslip

India’s four consolidated Labour Codes, which merged 29 existing central labour laws, reached full operational compliance on April 1, 2026. These employment rights updates affect every company with employees in India. Employers who haven’t restructured payroll are already out of compliance. (Source: Ministry of Labour and Employment, India)

The biggest immediate impact is the 50% wage rule. Basic pay, plus dearness allowance and retaining allowance, must now constitute at least 50% of an employee’s total cost-to-company (CTC). If your India team has the typical software engineer structure — small basic, large HRA and special allowances — restructuring is mandatory. Any allowances exceeding 50% of CTC flow back into wages for statutory calculation purposes.

The downstream effects are significant. Provident Fund contributions (12% employee + 12% employer) and gratuity are both calculated on basic wages. Raising basic pay means your total statutory payroll cost increases by 5–15% for most employers, depending on how heavily your current structure leans on allowances.

Two other changes apply immediately. Fixed-term employees now qualify for pro-rata gratuity after one year of service, down from five years. Full and final settlement of wages on separation must happen within two working days of exit.

Incorrect implementation means retrospective PF dues, gratuity shortfalls, and penalty exposure during inspections. Review the India salary structure guide for details on how to restructure CTC correctly under the new codes.

Action item: Complete a CTC audit for all India employees. Ensure basic + DA ≥ 50% of total CTC. Recalculate PF and gratuity liability under the revised wage definitions. Update separation and final settlement processes to meet the two-working-day requirement.

Singapore Raises Shared Parental Leave to 10 Weeks for Babies Born From April 1

Singapore’s Ministry of Social and Family Development confirmed that Shared Parental Leave increases from 6 to 10 weeks for eligible working parents of Singapore citizen children born on or after April 1, 2026. Combined with Government Paid Maternity Leave (16 weeks) and Government Paid Paternity Leave (4 weeks), total paid parental leave for eligible parents now reaches 30 weeks in the child’s first year. (Source: Ministry of Social and Family Development, Singapore)

By default, the 10 weeks split equally, five weeks per parent. Parents can agree to reallocate within four weeks of birth. SPL must be taken within 12 months. Employers can claim government reimbursement for up to 10 weeks at the applicable rate, capped at S$2,500 per week. This change does not apply retroactively to children born before April 1.

The government reimbursement keeps direct costs manageable, but the planning overhead matters. Model coverage gaps for upcoming births now. Asanify’s Singapore leave policy guide has the full entitlement breakdown.

Action item: Update your Singapore leave policy documentation to reflect 10-week SPL. Notify HR and payroll teams. Register each SPL claim with the Ministry of Social and Family Development to access government reimbursement.

EU Pay Transparency Directive: Seven Weeks to the June 7 Deadline, and Several Member States Are Behind

All 27 EU member states must transpose the Pay Transparency Directive into national law by June 7, 2026. The European Commission confirmed no extension. But the Netherlands, Sweden, and France have indicated they may miss the deadline. The Commission has made clear that non-implementation will trigger infringement proceedings, but employer obligations still apply regardless of whether the member state has passed local legislation. (Source: Ogletree Deakins)

The core employment rights updates in the directive: employers must provide pay ranges to applicants before the first interview. Workers gain the right to request average pay data for comparable roles. Pay secrecy clauses become unenforceable. Companies with 100 or more employees face mandatory gender pay gap reporting starting in 2027.

Baker McKenzie launched an employer compliance toolkit in April 2026 specifically for this deadline. The recommended steps: audit salary bands, document pay ranges for every open role, and review employment contracts for pay secrecy language that must now be removed. (Source: Baker McKenzie EU Pay Transparency Toolkit)

Action item: Map your EU operating countries. Check local transposition status for each. Audit job postings for pay range disclosures. Remove pay secrecy clauses from contracts. Target June 1 as your internal compliance date, leaving one week of buffer before the hard deadline.

Quick Hits

• India EPFO: The April 15 deadline for UAN (Universal Account Number) activation for new contractors under the Labour Codes has now passed. If you have new India contractors who missed this, regularise their UAN status immediately to avoid PF compliance gaps. (Source: EPFO)
• UK Gender Pay Gap Reporting: The April 4, 2026 deadline applied to private and voluntary sector employers with 250 or more UK employees. Non-filers are published on the government’s public portal. If your April 4 submission is missing, file now. (Source: UK Government GPG Service)

Action Items This Week

If you employ anyone in the UK: Verify NLW at £12.71/hr and SSP at £123.25/week from day one are in your April payroll. Update holiday records retention policy to six years. Get written NI compliance confirmation from any UK staffing agencies in your supply chain.

If you have employees in India: Run a CTC audit against the 50% wage rule. Restructure compensation where basic + DA falls below half of total CTC. Recalculate PF and gratuity under revised wage definitions. The April 1 deadline has passed, so retroactive exposure is live.

If you have employees in Singapore or plan to hire there: Update leave policies to reflect 10-week SPL for babies born on or after April 1, 2026. Confirm payroll can process the expanded leave. Register claims with the Ministry of Social and Family Development for government reimbursement.

If you operate across the EU: Identify which member states have enacted local Pay Transparency Directive legislation. Audit job postings for pay range disclosures. Remove pay secrecy contract clauses before June 7. Build in a one-week buffer and target June 1 for completion.

Managing employment rights updates across four jurisdictions simultaneously is the kind of overhead that grows quietly until it bites. Asanify’s Global EOR service handles local law changes automatically for distributed teams.

Frequently Asked Questions

What is the UK’s new Fair Work Agency and what enforcement powers does it have?

The Fair Work Agency launched on April 7, 2026 as the UK’s consolidated employment enforcement body. It replaced several separate agencies and now enforces National Minimum Wage compliance, statutory sick pay, employment agency standards, and labour exploitation protections in one place. Later in 2026 its remit expands to include holiday pay enforcement. Employers face inspection powers and penalty notices from a single body that has broader reach than its predecessors.

What does India’s 50% wage rule mean for Provident Fund contributions?

Under India’s new Labour Codes, basic pay plus dearness allowance must form at least 50% of an employee’s CTC. PF is calculated at 12% on basic wages, so raising the basic component directly increases monthly PF deductions and employer contributions. For an employee earning ₹1,00,000 per month with a previous basic of ₹30,000, restructuring to ₹50,000 basic raises the employer PF contribution from ₹3,600 to ₹6,000 per month. Multiply that across a full India headcount and the financial impact is material.

Does Singapore’s new Shared Parental Leave apply to all employees or only Singapore citizens?

The 10-week Shared Parental Leave applies to eligible working parents of Singapore citizen children born on or after April 1, 2026. Both parents must be in qualifying employment. Permanent Residents and foreign nationals working in Singapore are eligible if their child holds Singapore citizenship. Employers are reimbursed by the government for SPL taken, capped at S$2,500 per week per parent.

What are the core obligations under the EU Pay Transparency Directive?

From June 7, 2026, employers must provide salary ranges or starting pay to job applicants before the first interview. Existing employees gain the right to request information on average pay for comparable roles. Contracts cannot restrict employees from disclosing their own salary. Companies with 100 or more employees face mandatory gender pay gap reporting starting in 2027.

What happens if an EU member state misses the June 7 Pay Transparency Directive deadline?

Missing the transposition deadline exposes the member state to infringement proceedings from the European Commission. But it does not eliminate employer obligations. National courts can still interpret local employment law in line with the Directive’s principles, particularly around pay secrecy and disclosure. Companies operating in countries that miss the deadline should still complete their compliance audit, since enforcement typically follows once local legislation catches up.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.