India’s Biggest workplace shift: New labour codes 2025

India is set to go through one of the most impactful changes in workplace regulations with the implementation of New Labour codes 2025. These Labour codes target to simplify labour laws, increase transparency, timely payments, and improvement of employee benefits across all industries.

The Government of India integrated 29 existing Labour laws into 4 major category.

1. Wages codes,2019 

2. Health and Working conditions, occupational safety code,2020

3. Industrial Relation Code (IR),2020

4. Social Security Code,2020

Top changes coming under New Labour Codes 2025

1. Appointment Letter Mandatory for all Employees: - Employer must provide a formal Appointment letter mention salary structure, job role, leave rule, PF/ESI applicability and definitely working hours.

2. Timely Payments: Salaries must be paid 7th of every month with digital records.

3. Final settlement of employees: - Full and final clearance must be done within 48 hours of resignation, exit or termination.

4. Pay Structure: - Basic pay=Minimum 50% of CTC. It will increase contributions for PF, ESI, Gratuity and leave encashment.

5. Gratuity Eligibility: - After completion of 1 year employees will be eligible for gratuity instead of 5 years.

6. Employee social Security: - workers from online platforms like Zomato, Swiggy, and Ola/uber etc. will get insurance and social security benefits.

7. Contract workers pay structure: - Contract workers will get benefits similar to permanent staff. They will now get PF, ESi, Gratuity, leave encashment and social security benefits.

8. Annual Health Check-up: - One free Annual health checkup will compulsory for employees above 40 years.

9. Increase Transparency: - PF, ESI and leave details must be clearly mentioned in offer letter. Bonus structure and overtime calculation will also include in offer letter.

Note: - This content must be for informational purposes only. Rules and regulations may be changed according to Government of India notifications.