The Government of India has officially replaced 29 ageing labour laws with four streamlined Labour Codes, bringing some of the biggest reforms ever made to the Indian workforce. These changes affect every professional — salaried employees, contractors, gig workers, and even fixed-term staff.
Here is a clear, practical breakdown of the major reforms that will shape working life across the country:
1️⃣ 48-Hour Weekly Work Limit
The new Labour Codes cap the maximum weekly work limit at 48 hours.
No organisation can compel employees to exceed this limit.
If you work extra hours:
👉 Every additional hour must be paid at double the wage rate.
This move directly tackles overtime exploitation and ensures fair compensation.
2️⃣ Gratuity Eligibility After Just 1 Year
Previously, employees were eligible for gratuity only after completing five years in a company. Now:
👉 Even contract workers and fixed-term employees qualify after one year.
This change significantly strengthens financial security for lakhs of short-term and project-based workers.
3️⃣ Basic Salary Must Be at Least 50% of CTC
Companies can no longer inflate allowances to reduce long-term benefits.
The new rule states:
👉 Basic Salary must be 50% or more of the total CTC.
This ensures:
- Higher PF contributions
- Higher gratuity
- Stronger retirement savings
- No manipulation of salary structures
Employees now receive the benefits they rightfully deserve.
4️⃣ Equal Pay for Women
The Labour Codes make gender-pay discrimination illegal.
👉 Women must receive equal pay for equal work.
Additionally:
👉 Contract workers must also receive key benefits similar to full-time staff — health insurance, regulated work hours, paid overtime, and mandatory annual medical checkups.
5️⃣ Minimum Wages for All Industries
Minimum wage protection is now universal.
👉 Every industry — organised or unorganised — must pay at least the legally mandated minimum wage.
This eliminates arbitrary salary practices and gives all workers a fair starting standard.
6️⃣ Salary Must Be Credited by the 7th of Every Month
Delayed salaries have been a widespread concern.
Under the new rules:
👉 Salaries must be credited by the 7th, or companies face strict penalties.
This strengthens financial consistency for workers nationwide.
India’s new Labour Codes aim to bring transparency, fairness, and accountability to workplaces, ensuring employees have stronger legal protection and better long-term benefits. As these reforms roll out nationwide, every working professional must stay informed and aware of their rights.
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