12 Key Changes Every Worker Must Know in 2025

Synopsis: The new labour codes in India, which will take effect on November 21, 2025, consolidate 29 outdated legislations into four general codes, which will guarantee improved wages, social insurance, and work rights to millions of employees across the nation.

India has brought changes to the labour laws and changed 29 old regulations into four new labour codes beginning November 21, 2025. The purpose of these updates is to safeguard employees more and simplify the labour laws.

What Are the four labour codes?

• Code on Wages: Provides fair minimum wages for all workers.  
• Industrial Relations Code: Dwelling upon the relations between the employers and the employees.  
• Code on Social Security: Social benefits are provided to more workers, including gig workers.  
• Occupational Safety, Health and Working Conditions Code: Enhances safety and health standards of the workplace.

Key Changes You Should Know

• Minimum Wage For Everyone: Minimum wage has now been made a right to all workers whether in organised or unorganised labour. A floor wage, established by the government, will do away with the fact that one worker is paid less than a basic salary.
• Clearer Wage Rules: Minimum budget allowance should be half the salary. This could decrease your immediate take-home pay; though it increases the amount you contribute to retirement benefits such as Provident Fund and gratuity.
• Gig Workers Receive Social Security: Gig and platform workers have never been covered by social security schemes before. Firms are required to make contributions to money towards health, life and disability insurance of such workers.
• Faster Gratuity Benefits: In case you are on a fixed term contract, now you can be granted gratuity in one year rather than five.
• Compulsory Letter of Appointment: Formal appointment letters should be given to all the workers, not only the formal workers but also informal and gig workers. This provides you with evidence of employment and the rights.
• Double Pay For Overtime: Work extra hours? You have to receive a minimum of twice the standard salary.
• Easier Access To Leave: You are now eligible to take paid leave after 180 days a year (before 240 days a year used to eligibility).
• Women Can Work Night Shifts: Women are able to work at night shifts as long as they agree and have safety measures so that new employment opportunities can be opened.
• Work From Home Recognition: Employees in the service industries are free to work at home with a mutual understanding, which brings in flexibility.
• Free Annual Health Checkups: The employers should provide free annual health checkups to employees above 40 years old.
• On-Time Wage Payment: Salaries should be disbursed in time so as to secure you in terms of finances.
• Commuter Accidental Insurance. (accident during employment): Home-to-work accidents are now under the compensation scheme.

Also read: 7 Strong Reasons Why India Remains a Global Investment Hotspot in 2025

Why These Changes Matter

These new labour codes ensure jobs are safer and benefits₹ millions of workers – factory workers to gig economy workers. They introduce transparency, improved social security, and flexibility to the Indian work force. It is also advantageous to the employers since the harmonized codes make it easier to comply and spur business development. 

These labour codes are a major move to the rights of the workers in India. In order to know how they work against you, you should stay abreast with the official communications, as well as, your HR or labour department.

Written By Jayanth R Pai