TaxTMI 
TaxTMI 
After TCS, Infosys sees one-time hit from new labour codes in Q3
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....fter TCS, Infosys sees one-time hit from new labour codes in Q3<BR>Income Tax<BR>Dated:- 14-1-2026<BR>PTI<BR>New Delhi, Jan 14 (PTI) After Tata Consultancy Services (TCS) flagged a sharp statutory impact from the implementation of India's new labour codes, Infosys on Wednesday reported a one-time exceptional charge of Rs 1,289 crore for the December quarter. Earlier this week, TCS said the rollo....
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....ut of the new labour codes in Q3FY26 resulted in a statutory impact of Rs 2,128 crore. HCLTech also disclosed a one-time provision of USD 82 million (about Rs 719 crore) linked to the implementation. The disclosures - reflecting on the Q3 earnings - highlight industry-wide adjustments by large IT services firms to account for changes in employee benefits and statutory obligations following the i....
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....ntroduction of the new labour regulations. For Infosys, which reported a 2.2 per cent dip in consolidated net profit to Rs 6,654 crore in the December quarter, it has raised its full-year revenue guidance, though a significant highlight of the Q3 FY26 results was the impact of the government's notification regarding the Labour Codes on November 21, 2025. These codes - that consolidate 29 labou....
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....r laws into a unified framework governing employee benefits during employment and post-employment, and introduce changes, including a uniform definition of wages and enhanced benefits relating to leave - led to a substantial increase in the company's employee-related liabilities. "The adjustments for Labour Codes represent an increase in gratuity liability arising out of past service cost and an....
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.... increase in leave liability, together by USD 143 million (Rs 1,289 crore), which is recognised in the consolidated statement of comprehensive income," Infosys said in a regulatory filing. India's largest IT services exporter TCS Monday reported a 13.9 per cent drop in December quarter profit at Rs 10,657 crore, primarily on a one-time impact of new labour codes. Implementation of the new labo....
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....ur codes during the quarter led to a "statutory impact" of Rs 2,128 crore, TCS said, adding that but for all the one-time impact, its profit would have grown 8.5 per cent to Rs 13,438 crore. PTI ANK MBI ANZ DRR<BR> News - Press release - PIB....