What Are the New Labour Codes 2025?

Let’s be honest—new labour Codes laws in India have always felt a bit like a maze. Too many acts, too many rules, and too much legal language.

But now, with the New Labour Codes, the Government of India wants to make things simpler, cleaner, and easier for both employees and employers.

So let’s talk about it like two friends having chai together.

☕ Yaar, Labour Codes kya cheez hai?

Good question!

Earlier, India had 29 different labour laws (Payment of Wages Act, PF Act, Bonus Act, Gratuity Act, Factories Act, etc.).

Now they’ve been grouped into 4 simple Labour Codes:

1. Code on Wages

2. Industrial Relations Code

3. Social Security Code

4. Occupational Safety, Health & Working Conditions (OSH) Code

So instead of 29 books, we now have 4 big books—cleaner and easier.

☕ Achha… but what changes for us in real life?

Here are the most important changes explained very simply:

1. Salary Structure Changes (This is the BIG one!)

Government says “Basic salary should be at least 50% of total CTC.”

✔ What happens because of this:

• PF amount increases (because PF is calculated on basic salary)

• The gratuity amount also increases

• Take-home salary may decrease, but your long-term benefits get stronger

Friendly example:

If your CTC is ₹50,000/month, earlier your basic might have been ₹15,000.
Now the company must keep the basic at ₹25,000.

Means:

• PF contribution increases

• Take-home reduces a bit

• Future savings become stronger

2. Work Hours Rule (Good News + Bad News)

The new code keeps the 48-hour weekly limit but allows flexibility:

✔ 4-day workweek possible

Companies can make:

• 4 days × 12 hours, OR

• 5 days × ~10 hours, OR

• 6 days × 8 hours

But total hours per week can’t cross 48 hours.

✔ Overtime Rules More Clear

If you work extra, overtime must be paid at 2x salary rate.

3. Paid Leaves & Carry Forward

Employees will get a minimum of 18 paid leaves per year (depending on state rules).

✔ Key changes:

• Leave can be encashed or carried forward

• Workers earn 1 leave for every 20 days worked

• Maternity rules continue (26 weeks leave)

4. Bigger Coverage of Social Security (PF, ESIC, Gratuity)

The Social Security Code expands benefits to more workers.

✔ Now covered under social security:

• Gig workers

• Platform workers (Zomato, Swiggy, Uber drivers, etc.)

• Contract workers

• Fixed-term employees

✔ Gratuity for fixed-term employees

Earlier, only 5 years service → gratuity.
Now, even 1-year fixed-contract workers can earn gratuity.

5. Job Rules: Hiring & Firing Made Smoother

The Industrial Relations Code aims to reduce confusion and disputes.

Important points:

• Companies with up to 300 workers can hire or let go without seeking government approval.

• Compensation rules for retrenchment are clearer.

• Faster dispute resolution between employer and employee.

6. Safety Rules Become Stronger

In factories, mines, warehouses, and service industries:

• Mandatory safety training

• Annual health checkups

• Strict working condition norms for women workers

• Night shift allowed for women (with safety measures)

☕ Toh overall good news hai ya bad news?

✔ Good News:

• Laws become simpler

• More PF, more gratuity → better future

• Clear working hours & overtime rules

• Better safety and social security

• Flexibility in work-week (4 day week)

• More rights for gig and contract workers

✔ Maybe Not-So-Good:

• Take-home salary may reduce

• Companies may adjust job structures

• Transition may take time

Final Thoughts

The New Labour Codes 2025 are designed to modernize our work culture.
Yes, some changes may feel uncomfortable at first, especially around take-home salary, but long-term benefits like PF, gratuity, job security, and safety become stronger.

If you understand the basics, the new laws feel less scary and more like a step toward a modern workforce.

⭐ FAQ Section (SEO for Voice Search)

1. What are the 4 new labour codes in India?

They include the Code on Wages, Industrial Relations Code, Social Security Code, and OSH Code.

2. Is the 4-day work week confirmed in India?

Yes, the new labour codes allow companies to implement a 4-day work week (12 hours/day), but weekly 48-hour limit stays.

3. Will my take-home salary reduce in 2025?

Yes, slightly — because PF and gratuity components will increase due to the 50% basic rule.

4. Are gig workers covered in the new labour laws?

Yes, gig & platform workers get social security benefits under the new codes.