What Are The New Labour Codes In India?

The central government of India has recently announced a major change in India’s current labour laws with the introduction of 4 new labour codes. The 4 new codes will be replacing around 29 labour laws just for one reason, and that is to keep the system updated with time for the betterment of the citizens of India.

The New Labour Code implementation date is November 21st, 2025. The primary reason behind this long-awaited amendment is to simplify provisions in the law, expand the social security benefits, and widen the reach so that every working citizen of India can be covered under it, especially those who work for irregular time intervals.

Read the article to learn more about the new labour codes as laid down in the New Labour Code gazette notification, including information on the mechanism of the New Labour Codes implementation.

What Are The Key Changes Introduced Through The New Labour Codes?

Key areas where changes through the new labour codes have been introduced are outlined below in detail for clarity and better understanding.

1. Wages

In the new labour codes, the definition of the word ‘wages’ has been revised, wherein a combination of basic pay, Dearness Allowance (DA), and retaining allowance must now constitute at least 50% of an employee’s total Cost to Company (CTC).

This change in definition will impact all its sub-components, such as Provident Fund, insurance, New Labour Laws gratuity, and others. The new laws also comprise the provision of minimum wages based on the skill, type of work, and geographical location of the workers. The government has instructed all the states to follow a National Floor Wage, which means a base wage below which wages shall not be given.

2. Inclusion Of Gig & Contract Workers

One of the major changes, as mentioned in the New Labour Code gazette notification, is the formal recognition of gig workers (like food delivery partners, cab drivers, etc.). This recognition will allow them to reap various social security benefits, like the Provident Fund, insurance, and the New Labour Code 2025 for gratuity. Along with gig workers, fixed-term employees, and workers working in the Micro, Small, and Medium Enterprises (MSMEs) will also be covered under the new labour codes.

3. Better Working Conditions

The new guidelines have specific provisions for making the working conditions of all employees, irrespective of their sector, better and humane. The guidelines have retained the important norm of 8 hours of work per day and 48 hours per week, but have given flexibility to the employers to choose from the given shifts as per their need: 12-hour shifts for 4 days, 9.5-10-hour shifts for 5 days, or the usual 8 hours per day for 6 days. The guidelines also ensure timely monthly payments for all types of workers, remuneration for overtime, etc.

The removal of 29 labour codes and the condensation of all those 29 into 4 not only simplifies the complexities in the structure of labour laws for the easier understanding of the citizens, but also reduces hefty paperwork and formalities from the shoulders of the authorities.

Also Read : The Unorganised Workers’ Social Security Act, 2008

Conclusion

The recently announced New Labour Codes are one of the most significant and crucial steps taken by the government of India for the reformation of the labour laws. The new guidelines are concise but at the same time, comprehensive and inclusive for all categories of employees, especially those who were either excluded (like fixed-term workers) or not recognised (like gig workers). However, the guidelines have recently been released, which means we still have to keep an eye on how they unfold.

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