This paper examines the modern characteristics of employee compensation systems in the context of Uzbekistan’s newly adopted Labor Code, which came into force in April 2023. The article outlines key legal reforms related to wage systems, performance-based compensation, and digital payroll mechanisms. By applying a qualitative research method, including legal-document analysis and comparative labor studies, the paper highlights how these reforms aim to increase transparency, fairness, and efficiency in the labor market. The study also discusses the challenges of implementation, particularly in the private sector and rural employment structures. The findings contribute to the broader understanding of wage system modernization in post-Soviet and developing countries.