New Labour Codes 2025 – What You Need to Know
New Labour Codes 2025: Complete Guide for Workers, Youth & Employers
The Government of India has officially implemented the four New Labour Codes, replacing 29 existing labour laws. These changes aim to simplify labour regulations, improve social security, and create a modern, worker-friendly framework for India’s growing economy.
This guide explains the key changes, benefits, and what different groups must know — including youth, women, gig workers, employees, and employers.
1. What Are the New Labour Codes?
The government has consolidated 29 labour laws into four major codes:
- Code on Wages
- Industrial Relations Code
- Social Security Code
- Occupational Safety, Health & Working Conditions Code
These codes aim to create a simplified, transparent, and unified system for both workers and employers.
2. Key Changes You Must Know
1. Higher Take-Home PF & Social Security
- PF, pension, and gratuity benefits become stronger.
- PF contribution is linked to a standardised definition of wages (basic salary + allowances).
2. Working Hours May Change
- Daily shift can be 12 hours, but weekly limit remains 48 hours.
- Flexible working hours, compressed work weeks allowed (e.g., 4-day week).
3. More Paid Leaves
- Every worker must receive an appointment letter.
- Mandatory annual health check-ups for certain workers.
- Maternity benefits and safety laws strengthened for women.
4. Gig & Platform Workers Legally Recognised
For the first time in India:
- Gig workers (Zomato, Swiggy, Uber, Ola, freelancers) receive legal recognition.
- Platforms must contribute 1–2% of their turnover to a Social Security Fund.
- Workers become eligible for:
- Life insurance
- Accident insurance
- Disability benefits
- PF-like support
- Healthcare schemes
5. Easier Hiring & Firing Rules for Companies
- Firms with up to 300 workers can lay off employees without prior government approval.
- Fixed-term employment becomes easier.
6. Mandatory Appointment Letter for Every Employee
This applies to:
- Full-time
- Contract
- Temporary
- Fixed-term
- Gig and platform workers
This ensures transparency and protection.
3. Benefits for Youth
The new codes aim to support young professionals by:
- Increasing job opportunities
- Protecting interns, apprentices, and gig workers
- Improving working conditions
- Offering stronger safety and social security benefits
4. Benefits for Women
- Safer workplaces
- Stronger maternity benefits
- Night shifts allowed with safety protocols
- Equal pay and non-discrimination mandated
5. What Employers Need to Know
- Wages must follow the standard wage definition
- PF/ESI compliance is mandatory
- Appointment letters must be issued
- Safety and health standards upgraded
- Social security contribution required for gig workers
6. Why the Labour Codes Matter
The reforms are among the biggest changes in India’s labour system since Independence.
They aim to:
- Strengthen social security
- Modernise labour laws
- Support the digital and gig economy
- Create transparency for employers
Despite this, labour unions have raised concerns about reduced worker protection and clarity — making accurate, simple guides necessary.