📰 New Labour Law 2025: Complete Guide for Employers & Employees (India)

📌 Introduction

The Government of India has introduced the New Labour Codes to simplify and modernize India’s labour regulations. These new laws combine 29 existing labour laws into 4 major labour codes, making compliance easier and ensuring better transparency for businesses.

These laws aim to balance both sides:✔ Employers benefit from simplified rules✔ Employees get better social security, safety, and protection

Let’s understand the key highlights in simple terms.

📘 1. Code on Wages, 2019

This code replaces:

• Minimum Wages Act

• Payment of Wages Act

• Payment of Bonus Act

• Equal Remuneration Act

Key Features:

• Uniform definition of wages across India

• Timely payment of salary (before 7th of every month)

• Gender-neutral wages – equal pay for equal work

• Minimum wages applicable to all employees, skilled or unskilled

Impact:

➡ Employers must restructure salary components➡ Employees will get higher basic salary and higher PF contribution

📘 2. Industrial Relations Code, 2020

This code focuses on strengthening relationships between companies and workers.

Key Features:

• Faster dispute resolution

• Standing Orders mandatory for companies with 300+ employees

• Simplified rules for layoffs & retrenchment

• Strikes require a 14-day prior notice

Impact:

➡ Reduces industrial disputes➡ Improves transparency for both employers & employees

📘 3. Occupational Safety, Health & Working Conditions (OSH) Code, 2020

This code ensures workplace safety and welfare.

Key Features:

• Common licence for factories, contractors, and industrial units

• Compulsory free annual health check-ups

• Safe working conditions for women

• Mandatory working hour limits

Impact:

➡ Cleaner, safer, and more regulated work environment

📘 4. Social Security Code, 2020

This code makes social security available to all workers—formal, informal, and gig workers.

Key Features:

• PF, ESI, Gratuity available to more workers

• Gig workers (Swiggy, Ola, freelancers) included

• Maternity benefits expanded

• PF & gratuity rules simplified

Impact:

➡ Stronger financial security for employees➡ Lower compliance burden on employers

📊 How These Laws Impact Salary Structure

Under the new labour codes:

• Basic salary must be at least 50% of total salary

• PF contributions will increase

• Take-home salary may slightly decrease

• Long-term benefits will increase (PF, gratuity)

🏢 Benefits for Employers

• Single compliance window

• Reduced disputes

• Transparency in labour practices

• Flexibility in hiring & firing (within rules)

👷 Benefits for Employees

• Better working conditions

• Higher social security

• Protection of wages

• Safe workplace for women

• Medical and insurance benefits