The Finance Ministry of India has enacted new procurement rules that tie compliance with labor laws to eligibility for government contracts. This significant move aims to protect outsourced and contractual workers across various government sectors by imposing strict penalties on firms that delay wage payments. Under the amended Rule 151 of the General Financial Rules (GFR), 2017, companies can now face debarment for up to three years for failing to pay wages or deposit statutory social security contributions as required by law. The new regulations require ministries and departments to ensure contractors disburse wages within established timelines, invoking provisions from the Code on Wages, 2019. Additionally, secretaries of all ministries are tasked with reviewing wage payment compliance to ensure effective implementation of the Labor Codes. The government believes these measures will enhance accountability among contractors and principal employers while ensuring timely remittance of social security contributions, ultimately benefiting contract workers.