Friday, 16 January, 2026
New Labour Code Implementation Threatens Profit Margins for Indian IT Firms
The impending rollout of India’s new labour codes is raising concerns among IT giants as increased social security contributions and revised wage definitions threaten to squeeze operating margins. Companies face higher employee costs due to the restructuring of allowances and gratuity payments. As the industry grapples with existing talent retention challenges, these regulatory shifts are forcing firms to reassess their financial models.
Read full story at Economic Times