EOR & Compliance Digest, June 11: India Labour Code Wages, EU Pay Transparency, and APAC Payroll Shifts
If you run payroll across India, Europe, or APAC, this week needs your attention. The biggest item is India labour code wages, because the 50% basic-pay floor is already in force and it reshapes provident fund, gratuity, and take-home pay. Meanwhile, the EU pay transparency deadline has now passed, and most member states missed it. As a result, employers face a patchwork of rules instead of one. Australia and Singapore round out the list with payroll-timing and work-pass changes that hit on July 1. Here is what changed, who it affects, and what to do before your next pay run.
India Labour Code Wages Now Force a 50% Basic Pay Floor
India consolidated 29 older labour laws into four codes, and they took legal effect on 21 November 2025. The Code on Wages is the one that touches your payroll first. (Source: EY India) The central rules that operationalise the codes were published in draft on 30 December 2025, and the Ministry of Labour is finalising them. (Source: KPMG)
What India’s labour code wages rule changes
Under the Code on Wages, allowances that sit outside the wage definition cannot exceed 50% of total remuneration. If they do, the excess counts as “wages” for statutory math. (Source: DLA Piper) So basic pay effectively has to reach at least half of gross. Therefore, provident fund, gratuity, and bonus calculations all rise, because they key off the higher base. Employer and employee PF contributions go up together. Take-home pay can dip slightly, even when CTC stays flat.
The Social Security Code adds a second change that matters for distributed teams. It cuts the gratuity qualifying period for fixed-term workers from five years to one. (Source: BDO India) Gig and platform workers also move toward formal social security coverage under the same code. For more background, see our guide to labour laws in India.
India labour code wages: what to do this week
First, audit your India salary structures. Any offer where basic sits below 50% of gross needs a rebuild. Second, model the PF and gratuity impact before you re-issue letters, because the cost lands on both sides. Third, flag fixed-term contractors who now cross the one-year gratuity threshold. If you hire through an entity, your finance team owns this. If you hire through an EOR, confirm the provider has already restructured. You can review the mechanics on our India salary structure guide.
EU Pay Transparency Deadline Passed With Most States Behind
The transposition deadline for the EU Pay Transparency Directive was 7 June 2026, and it has now passed. (Source: Morgan Lewis) However, only four of the 27 member states met it: Slovakia, Italy, Lithuania, and Malta. The European Commission confirmed in December 2025 that it would not move the date. (Source: Ogletree Deakins)
So you now face a patchwork. The Netherlands and Denmark have said they will implement by 1 January 2027. Sweden has paused entirely and wants the directive renegotiated. The core obligations still stand: employers with 100 or more staff must report their gender pay gap, and a gap above 5% triggers a joint pay assessment. If you employ people across several EU countries, you cannot assume one national rule covers all of them. Check each jurisdiction. For German hires specifically, review local rules on our Germany employment laws page.
Australia Moves to Payday Super From July 1
From 1 July 2026, Australian employers must pay superannuation at the same time as wages, not quarterly. The contribution has to reach the employee’s fund within seven business days of payday. (Source: Fair Work Ombudsman) The Small Business Superannuation Clearing House also closes from the same date. (Source: Australian Taxation Office)
This is a cash-flow and systems change, not just a policy note. If you employ anyone in Australia, your payroll software must support per-cycle super by July 1. Late contributions attract the super guarantee charge, so timing slippage gets expensive fast. Confirm your provider is ready now. You can sanity-check the basics on our Australia payroll guide.
Singapore Tightens Work Pass Renewals From July 1
Singapore’s updated COMPASS framework took effect for new Employment Pass applications on 1 January 2026, and it now reaches renewals from 1 July 2026. (Source: KPMG) Applicants need at least 40 points across six criteria, with higher sector-specific salary benchmarks and a revised Shortage Occupation List. Several technology roles came off that list.
If you have EP holders in Singapore coming up for renewal in the second half of 2026, score them against the new rules now. Some staff who passed easily in 2024 may sit closer to the line today. Firms with 10 or more employees must also advertise roles on MyCareersFuture for 14 days before lodging most EP applications. Plan hiring timelines around that. Our Singapore hiring guide covers the wider process.
Quick Hits
- United Kingdom: From 6 April 2026, statutory sick pay is payable from the first day of absence, and the three-day waiting period is gone. (Source: Acas)
- European Union: The EU Platform Work Directive takes effect on 2 December 2026 and creates a rebuttable presumption of employment for platform workers. (Source: Ogletree Deakins)
- Australia: Concessional super contribution caps rise from 1 July 2026, so review salary-sacrifice arrangements for senior staff. (Source: ATO)
Action Items This Week
If you hire in India: Audit every salary structure against the India labour code wages rule. Basic pay must reach 50% of gross. Re-model PF and gratuity costs before re-issuing letters, and check fixed-term contractors for the new one-year gratuity threshold.
If you employ in the EU: Map which of your countries have transposed pay transparency and which have not. Do not assume a single rule applies. Confirm gender-pay-gap reporting readiness for any entity with 100 or more staff.
If you run payroll in Australia: Verify your payroll system supports payday super by 1 July 2026. Contributions must land within seven business days of each pay run.
If you sponsor passes in Singapore: Re-score EP holders due for renewal after 1 July against the updated COMPASS criteria, and build the 14-day MyCareersFuture advertising window into your hiring plan.
The Bottom Line
These changes share one theme: payroll and compliance rules are moving faster than most internal teams can track country by country. If you are juggling India labour code wages, EU pay transparency, and APAC payroll timing at once, a single system that handles multi-country payroll, tax, and statutory compliance saves real hours. Asanify’s EOR and Global HRMS is built for exactly this kind of cross-border load. Worth a look if your compliance calendar is starting to sprawl.
Frequently Asked Questions
What do the India labour code wages rules change for payroll?
The Code on Wages requires basic pay to be at least 50% of gross remuneration. Because provident fund, gratuity, and bonus all key off that base, those statutory costs rise for both employer and employee. Many salary structures need rebuilding to comply.
Did the EU Pay Transparency Directive take effect on 7 June 2026?
The transposition deadline was 7 June 2026, but only four of 27 member states met it. The directive’s obligations still apply, so employers should check each country’s national status rather than assume uniform rules.
What is Australia’s payday super change?
From 1 July 2026, employers must pay superannuation at the same time as wages, with contributions reaching the employee’s fund within seven business days. It replaces the old quarterly schedule and demands payroll-system updates.
Do we need an EOR to manage these multi-country changes?
It depends on your headcount per country and your appetite for in-house compliance work. For teams with a handful of hires in each country, an EOR absorbs the payroll, tax, and statutory updates automatically. Larger footprints often mix EOR coverage with local entities.
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.
