The new labour laws in India is basically a four-in-one combo pack that replaced the 29 old scrambled rules with something beneficial and smarter.
These 4 new labour code for 2025 covers everything that an employee needs to know before joining any company that includes how you are paid, workplace safety, handling of disputes, and many more.
Now, without wasting time, let’s jump right into the new Indian labour codes that the Indian government just dropped and know more in detail.
In this you will get to know about the basic pay, gratuity rules, PF changes, wage structure, take-home salary details and many more.
4 New Labour Codes That an Employee Must Look
The purpose of new labour law is to make the rule simpler, increase ease of doing business, and worker safety.
Code on Wage 2019:
The Code on Wages is a combination of four wage-related earlier laws, simplifying and bringing equity in wage rules.
In simple terms:
- Every worker must get at least minimum wages.
- Wages ought to be paid to all employees on time.
- Wages are now defined in a manner that manipulations by companies of the salary structure are not allowed.
- Men and women on equal pay for equal work.
Significance: This code should enhance clarity, fairness, and transparency on wage matters. Employers are provided one single uniform rule across the country.
Industrial Relation Code, 2020
The Industrial Relations Code is concerned with lapidation of contact between workers and employers, whether strikes, layoffs, unions, etc.
In other words, it is:
- Clarifies the processes for the formation of trade unions.
- Firms with up to 300 workers (up from 100) will find it easier to hire and fire employees in certain circumstances.
- It treats the right to strike as contingent upon notice.
- Promotes conciliation and resolution to avoid long litigation.
Why it matters: This code envisions the creation of a better balance in the environment within which people work.
Code on Social Security, 2020
The law on Social Security administers several laws concerning provisions for PF, ESI, pensions, maternity benefits, and the like for labor welfare schemes.
Simply explained:
- Expansion of social security benefits coverage to gig workers (ex: Zomato, Uber drivers) and platform workers.
- Streamlining of PF, ESI, and new gratuity rules.
- Provides for universal social security in the long run.
Why does it matter: It seeks to create a future in which every worker has access to at least some basic safety net like insurance, pension, and maternity benefits.
Employee Safety, Health and Working Code, 2020
Health, Safety, and Working Conditions Code for factories and establishments.
In simple terms:
- Specifies the working hours, rest, and overtime.
- Provides the employers with ‘Safe and Healthy Workplaces.’
- Special protection for woman employees (like night shifts safeguards).
- Provides a single license for contract labour in India.
Why it matters: In summary, the code intends to ensure a better working condition, provide a safer environment for employees, and help the Companies in facing fewer compliance hurdles.
Impact of New Labour laws Towards Employment
The impact of the New Labour Laws on employment is vividly seen in the various amendments that were introduced under the Wage Code, more especially the new wage structure whereby 50% of the salary to be basic pay. This gives a direct bearing on the calculations for PF and gratuity. It is all intended by these reforms to bring transparency and uniformity, such as those influences that will sway an employee’s actual take-home salary.
Although the Labour Codes bring a better version of social security benefits such as clear rules on wages and protection cases for more workers, these codes generally disadvantage employers through increased costs and low flexibility in payroll structure.
Overall, the new laws will create a more regulated and balanced system that will aid both employees and companies in planning wages, PF contributions, and long-term financial benefits.
Summary
The new labour code 2025 for gratuity, PF, Salary, security, and more bring significant changes in comparison to the old jumbelled rules. They are now well structured and smarter that bring benefits for both the employees and employers.
As new labour codes are implemented, we make compliance effortless. From PF and gratuity to pay restructuring and license our consulting firm Regible Corporate Advisor LLP will take care of everything with care so you can stay ahead of the curve.
FAQs
What are the new labour laws for gratuity?
The gratuity eligibility new rules state that many workers are eligible for gratuity just after one year of service. You can use a gratuity calculator if you want to know your amount.
Do gig or contract workers receive social security under new law?
Yes, gigs and contract workers are also legal footing and also eligible to receive social security under the new labour law.
Is there any impact of new labour laws on take-home salary?
Yes the new law may impact your take-home salary because gratuity and PF deduction increase when basic wages are raised.
Are there any changes in women working hours and night shifts?
The new labour law working hours for women allows them to work for night shifts (with their approval) and permits longer working hours under certain conditions.
What are the new working hour changes for workers?
You can now have flexible working hour, letting employee work up to 12 hours a day in a shorter workweek with a limit of 48 hour a week.
