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The Indian government has brought four comprehensive labour codes into force, fundamentally restructuring the country's labour law framework. These codes consolidate and modernize existing labour legislation, affecting employment contracts, working conditions, social security, and industrial relations. This represents a significant overhaul of India's labour compliance landscape, impacting employers' obligations across multiple areas including wages, working hours, social security contributions, and occupational safety.
On 21 November 2025, the Government of India brought into force four comprehensive labour codes that consolidate 29 existing central labour laws and fundamentally restructure the country's employment compliance framework. The Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 now govern wages, working conditions, social security contributions, and industrial relations across all sectors nationwide.
Who is affected
All employers operating in India are affected, regardless of size or sector. The codes apply to:
- All workers, including permanent employees, fixed-term employees, contract workers, gig and platform workers, and migrant workers
- Employers of all sizes, with specific thresholds triggering additional obligations (e.g., mandatory safety committees for establishments with 500+ workers; ESIC coverage mandatory for establishments with even one employee in hazardous processes)
- Platform aggregators, who must now contribute 1–2% of annual turnover (capped at 5% of amounts paid to gig and platform workers)
- Specific sectors including IT and ITES, textiles, plantations, mining, audio-visual and digital media, export, and hazardous industries
What's changing
| Area | Before | After (21 November 2025) |
|---|---|---|
| Minimum wages | Applied only to scheduled industries; many workers uncovered | Universal statutory right to minimum wage for all workers; national floor wage established |
| Appointment letters | Not mandatory | Mandatory written appointment letters for all workers |
| Working hours | Varied by sector | Capped at 8–12 hours per day, 48 hours per week |
| Overtime pay | Varied | Minimum double the normal wage rate, consent-based |
| Gratuity (fixed-term employees) | Eligible after five years | Eligible after one year of continuous service |
| Social security coverage | Limited; ~19% of workforce in 2015 | Extended to all workers including gig and platform workers; ~64% coverage in 2025 |
| ESIC coverage | Limited to notified areas and specific industries | Pan-India; voluntary for establishments with fewer than 10 employees; mandatory for hazardous processes with even one employee |
| Women's work restrictions | Night shifts and certain occupations restricted | Permitted in all work including night shifts, underground mining, and heavy machinery (subject to consent and safety measures) |
| Wage payment deadline | No uniform mandate | Mandatory by the 7th of every month |
| Health check-ups | Not required | Free annual health check-up mandatory for workers above 40 years |
| Compliance filings | Multiple registrations, licenses, and returns | Single registration, single pan-India license, single return |
What NEO partners and clients should do
- By 21 November 2025: Issue written appointment letters to all India-based workers (permanent, fixed-term, contract, gig) specifying designation, wages, and social security entitlements.
- By 7 December 2025: Ensure November 2025 wages are paid by the 7th of the month; adjust payroll calendars to meet the mandatory 7th-of-month deadline going forward.
- Before 31 December 2025: Review and update employment contracts to reflect new working-hour caps (8–12 hours/day, 48 hours/week), overtime consent requirements, and double-overtime-pay provisions.
- Q1 2026: Register for the single pan-India license and transition to the unified compliance return system; confirm ESIC and provident fund coverage for all eligible workers, including fixed-term and contract staff.
- Q1 2026: If operating platform or aggregator models, calculate and remit 1–2% of annual turnover (capped at 5% of gig/platform worker payments) to the social security fund.
- Ongoing: Implement free annual health check-ups for workers over 40; establish or update safety committees if employing 500+ workers; ensure women employees provide written consent for night-shift assignments and that required safety measures (transport, CCTV, security) are in place.
Sources
- Press Information Bureau, Government of India, Ministry of Labour & Employment: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2192463
