Reserve Bank of India (RBI) stated in its latest monthly bulletin that in the organised sector of India, staff cost growth accelerated for manufacturing as well as services sector on a y-o-y basis during Q2 and Q3 of 2025-26. The enactment of the new labour laws has significantly impacted corporate employee costs and profitability. Majority of top 500 non-government non-financial (NGNF) listed companies made provisions towards gratuity and other social obligations mandated by these laws as an exceptional item in their financial results for Q3:2025-26. Consequently, employee cost growth (including provisions reported under exceptional items) surged significantly on a y-o-y basis while net profit contracted. Sector-wise, manufacturing companies have made the highest provisioning led by automobiles, pharmaceuticals, chemicals, and electrical machinery.