India’s New Labour Laws 2025: What You Need to Know

Starting November 21, 2025, India has implemented four comprehensive Labour Codes that simplify and modernize labour regulations across the country. Here are the highlights every employer and employee should know:

🔶 Four Labour Codes Introduced
▪️ Code on Wages
▪️ Industrial Relations Code
▪️ Social Security Code
▪️ Occupational Safety, Health & Working Conditions Code

🔶 Impact on Salary & Benefits
▪️ Basic salary must be at least 50% of CTC, increasing PF and gratuity contributions but reducing immediate take-home pay.
▪️ Gratuity eligibility cut from 5 years to just 1 year of service.
▪️ Annual paid leave eligibility reduced from 240 to 180 days worked.

🔶 Expanded Social Security Coverage
▪️ Gig and platform workers now included under social security benefits.
▪️ Universal PF, ESIC, and insurance schemes extended to informal sectors.

🔶 Improved Worker Rights & Compliance
▪️ Mandatory appointment letters for all types of workers.
▪️ Gender equality measures: women allowed in night shifts and heavy machinery with safety protocols.
▪️ Easier dispute resolution via streamlined tribunals.
▪️ Formal recognition and protection for fixed-term and contract employees.

🔶 What Employers Should Do
▪️ Review and update payroll structures to align basic salary rules.
▪️ Ensure all employees receive proper documentation including appointment letters.
▪️ Prepare for new compliance and reporting requirements under the Labour Codes.
▪️ Support workforce transition with reskilling and social security adherence.

These reforms mark a decisive step towards a more transparent, secure, and progressive labour environment in India. Stay informed and compliant to harness the benefits of this transformative labour regime.