India’s New Labour Codes: Minimum Wage, Health Checkup, WFH & Gratuity – What Every Employee Must Know

India’s New Labour Codes: The landscape of employment in India just transformed in a big way. With the Union government merging 29 labour laws into four new comprehensive labour codes, the workplace is set for a revolution in both employee rights and business operations. Whether you’re a salaried professional, a contract worker, a gig worker, or someone working remotely, these new labour codes in India impact you.

Let’s break down the essential changes in India’s new labour codes and how they affect your workplace earnings, rights, and security.

1. Universal Minimum Wage: A Statutory Right

Under the new labour codes, every employee – regardless of sector, pay grade, location or nature of work – is entitled to minimum wages. No more confusion or regional disparities: A national “floor wage” will be set by the Central Government, ensuring nobody is paid less than the statutory minimum. This single provision is a game-changer, especially for unorganised sector workers who often lacked wage guarantees.

2. Standardised Wage Structure – How Take-Home Pay May Shift

The new definition of “wages” under the labour codes mandates that basic pay must be at least half (50%) of your total remuneration. This change could lower your immediate take-home pay for some employees, as allowances and benefits might decrease, but it raises your contributions to social security schemes like Provident Fund (PF) and gratuity. In the long run, this means improved retirement and insurance coverage for every worker.

3. Social Security Expanded – Protection for Gig and Platform Workers

For the first time ever, India’s gig economy workforce—including delivery partners, drivers, and platform-based freelancers—are covered under social security provisions. Aggregator companies will contribute a percentage of their annual turnover to a dedicated fund. Gig workers can expect benefits like life and disability insurance, health cover, and more, moving closer to parity with full-time employees.

4. Gratuity – Faster and Fairer for Fixed-Term Employees

Earlier, an employee needed five consecutive years of service to qualify for gratuity. The new labour codes reduce this to just one year for fixed-term employees. This boosts financial security, letting contract and seasonal staff claim a lucrative exit payout with far fewer service years—a step that recognises the dynamic nature of today’s job market.

5. Mandatory Appointment Letters – Transparency for All

No more informal jobs without paperwork. All employers now must issue a formal appointment letter to every new worker—including those in the unorganised and gig sectors. This simple document ensures proof of employment, wage terms, and social security entitlements. It’s a vital shield for workers against exploitation and uncertainty, especially in roles that previously operated only on trust.

6. Overtime – Double Pay Guaranteed

If you work beyond normal hours, you’re now legally entitled to at least double your regular wage rate. This change will especially benefit service sector staff, factory employees, and other groups often asked to stretch their shifts—ensuring fair reward for extra effort.

Read in Hindi: New Labour Codes 2025 लागू: 21 नवंबर से देशभर में बदले श्रम कानून

7. Annual Leave – Easier and Earlier Access

Employees now qualify for annual paid leave after just 180 days on the job, instead of 240 as previously required. New hires and seasonal staff can access paid time off sooner, supporting better work-life balance and wellbeing.

8. Gender Equality: No Discrimination, Night Shifts for Women

A strict ban on gender-based wage discrimination is a central pillar in the new labour codes in India. Women can now work night shifts across all industries—with consent and mandatory safety measures provided by employers. This opens up new opportunities, especially in IT, hospitality, factories, and manufacturing.

9. Work From Home (WFH) – Formalised Flexibility

Remote work is now officially recognised in the service sector. WFH arrangements can be decided by mutual agreement, providing flexibility for both employers and employees without ambiguity.

10. Free Annual Health Checkups for All Above 40

Employers must provide free annual health examinations to every employee above the age of 40. This proactive step encourages preventive healthcare and boosts workforce wellbeing.

11. Timely Wage Payments – Salary Stability Assured

Gone are the days of payroll delays. Employers must pay monthly staff within seven days of the following month, and settle dues within two working days for those leaving service. Timely salary means less financial stress and better planning for all workers.

12. Worker Safety – Commuting Accidents Covered

If an accident occurs while travelling between home and workplace, it is now deemed employment-related, qualifying the worker for compensation under the new labour codes. This reflects a modern understanding of workplace realities and supports employees through tough times.

Conclusion: Modern Rights, Secure Futures

The new labour codes in India promote ease of doing business but also strongly advance worker protections. Transparent appointments, secure wages, better social security, improved leave, and more inclusive rights mean a safer, fairer work environment for millions.

Whether you’re a gig worker, office staff, factory employee, or management, these reforms aim to build a new era of prosperity, security, and equality across India’s workforce.

Stay updated, check your entitlement, and be ready to embrace the future with India’s new labour codes—your rights and protections have never been clearer.