New Labour Codes 2025: What every worker across India needs to know

‘Wages’ will now uniformly consist of basic pay, dearness allowance and retaining allowance.

India's new labour codes consolidate a wide range of existing workplace laws into a single, modern framework aimed at making hiring practices, wage rules, social security benefits and working conditions clearer and more consistent across industries. With features such as universal minimum wages, protections for gig and platform workers, streamlined compliance systems and more flexible work-from-home options, the codes seek to balance employee welfare with ease of doing business.

The new framework extends minimum wage requirements to all workers, including those in the unorganised sector, ensuring broader coverage across employment types. The rule applies to all employees, with government employers accounting for more than 30% of the workforce covered.

A central floor wage will be set based on minimum living standards. State governments must fix their minimum wages above this nationally determined floor.

"Wages" will now uniformly consist of basic pay, dearness allowance and retaining allowance. At least half of an employee's total compensation must fall under these components, preventing excessive reliance on allowances and ensuring uniformity in wage calculation.

Employers cannot differentiate wages or job conditions on the basis of gender when employees perform similar work.

The wage payment provisions now cover all employees earning up to ₹24,000 per month, helping ensure timely and fair payments across sectors.

Employees must be compensated at no less than twice their regular wage rate for overtime work.

Most violations that previously attracted imprisonment will now result in monetary penalties, except for serious offences.

The requirement for government approval in these cases has been increased from 100 to 300 workers, with states permitted to set even higher limits.

The codes formally recognise work-from-home arrangements in service industries, offering flexibility for both employees and employers.

A two-member tribunal will handle disputes to speed up proceedings and reduce case pendency.

Employees must give a 14-day notice before going on strike. Strikes are prohibited during this notice window and during ongoing negotiations, reducing the likelihood of sudden industrial action.

Aggregators will contribute 1-2% of their turnover toward social security schemes for gig and platform workers.

Fixed-term workers will be eligible for gratuity on a proportional basis without needing to complete the traditional five-year minimum.

Inspections will be carried out using a randomised, algorithm-driven system to promote transparency and reduce harassment.

Certain violations may be settled through monetary payment, easing the burden on the judicial system.

All licences, registers and returns can be maintained electronically, reducing paperwork and improving efficiency.

Centralised filing for inspections, returns and registrations simplifies compliance for businesses.

Employers must issue formal appointment letters to all employees, including those working in the unorganised sector.

Women can work night shifts in all sectors, provided they consent and adequate safety measures are in place.

The Contract Labour Act will now apply to establishments employing 50 or more contract workers.

Units with 20 workers (with power) or 40 workers (without power) will now qualify as factories, raising the earlier thresholds.

The weekly work limit remains 48 hours. Daily working hours may be extended as long as the total weekly limit is maintained and overtime is paid at double the regular rate.