India has formally implemented its long-awaited labour codes, bringing sweeping changes that impact nearly 400 million workers across the organised and unorganised sectors. Effective November 21, the new framework replaces 29 older laws with four consolidated codes: the Code on Wages, Industrial Relations Code, Occupational Safety, Health and Working Conditions (OSH) Code, and the Social Security Code. Together, they aim to improve working conditions, strengthen social security, and modernise labour regulations.
A key highlight is the nationwide guarantee of minimum wages. Until now, wage standards varied significantly across states and sectors, often excluding informal workers. The Centre will now introduce a national floor wage, ensuring no state sets wages below the benchmark. Alongside this, the definition of ‘wages’ has been standardised—basic pay must form at least 50% of total salary. While this may slightly reduce take-home pay due to higher PF and gratuity deductions, it enhances long-term financial stability.
The codes also introduce more flexible working arrangements. While the weekly limit of 48 hours remains unchanged, working hours can now be distributed across four-, five- or six-day weeks, with daily shifts extending up to 12 hours in some cases. Overtime must be paid at twice the regular wage, and state governments will decide their own overtime caps. Paid leave eligibility has been eased too, with workers now qualifying after 180 days instead of 240.
In a major expansion of worker welfare, all employees above 40 are entitled to free annual health checkups. Plantation workers will now access ESIC benefits more uniformly, and accidents during commutes will be treated as employment-related for compensation purposes.
Gig and platform workers - one of India’s fastest-growing workforce categories, will receive social security benefits for the first time, funded partly through contributions from aggregator companies. Fixed-term employees also benefit, as gratuity eligibility has been reduced from five years to just one.
Other reforms include mandatory appointment letters for all new hires, recognition of work-from-home arrangements, gender-neutral rules allowing women to work night shifts with safety measures, and stricter timelines for wage payments.
Overall, the new labour codes represent a significant shift toward a more secure, equitable and modern workplace ecosystem in India.
