Onsurity Editorial
November 27, 2025
7 min read
14Table of Contents
On November 21, 2025, a very important update was introduced to the Labour laws by the Government of India. Four new labour codes have now become effective, simplifying the existing 29 labour laws. These four labour codes emphasize a better future for Indian workforces, ensuring better wages, equal opportunities, and better protection for workers. These codes include 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.
This major shift lays the foundation for a modern, unified, and future-ready workforce. It aligns with the vision of Aatmanirbhar Bharat by empowering India’s workforce, strengthening industries, and bringing clarity to labour regulations that were previously fragmented and outdated.
The reform focuses on fair wages, workplace safety, social security, and ease of doing business. It is designed to build a more resilient and competitive labour market for India’s future.
Also read: Next-Gen GST Reforms: 0% GST On Individual Life and Health Insurance
What Has Changed Under India’s New Labour Codes
The four new Labour Codes bring significant changes across various areas such as employment formalization, social security, healthcare, women’s participation, minimum wages, safety standards, and compliance procedures.
Below is the official comparison released by the Press Information Bureau to help you understand what has changed.
| Top Points | Pre Labour Reforms | Post Labour Reforms |
| Formalization of Employment | No mandatory appointment letters. | Appointment letters are now mandatory for all the workers, which ensures trust, transparency, and job security. |
| Social Security Coverage | No Social Security coverage. | Under the Code on Social Security, 2020, all the workers, including the gig and platform workers, are covered; also, they will get PF, ESIC, insurance, and other social security benefits. |
| Minimum Wages | Previously, the minimum wages were only applicable to scheduled industries/employments, which left a large section of workers uncovered. | Now all workers will receive a statutory right minimum wage payment with a provision for timely payment under the Code on Wages, 2019, which ensures financial security. |
| Preventive Healthcare | There was no law obligating employers to provide free health check-ups annually to workers. | Now it is mandatory for employers to provide free annual health check-ups for all the workers aged 40 and above, which helps in the early detection of diseases, promoting a timely preventive healthcare culture. |
| Timely Wages | No mandatory compliance for employers’ payment of wages. | It is now mandatory for employers to provide wages on time, which ensures the employees are under less stress regarding their financial security, boosting their overall morale. |
| Women’s Workforce Participation | Previously, women faced limits on working night shifts and in particular job roles. |
Women can now work night shifts and in all occupations, subject to their consent and if necessary measures are taken for their safety. Women will have opportunities across all roles, supported by rules that ensure pay parity. |
| ESIC Coverage | ESIC applied only to certain notified regions and industries, generally excluding establishments with under 10 workers. Even hazardous-process units lacked uniform mandatory ESIC coverage nationwide. |
ESIC coverage and benefits have been expanded nationwide. Coverage is voluntary for establishments employing fewer than 10 workers, while it is mandatory for any unit with even one employee engaged in hazardous processes. All workers will receive broader social protection coverage. |
| Compliance Burden | Multiple licenses, registrations, and returns were allowed across various labour laws. |
Single registration, PAN-India single license, and single return. Simplified processes and reduction in compliance burden. |
Source: PIB
A Deep Breakdown of the Key Changes Under 2025 Labour Rules
1. Mandatory Minimum Wages for All Workers
Every worker in India now has legal rights to minimum wages. This applies to both organized and unorganized sectors, ending previous gaps where many categories remained uncovered. A national floor wage will be set by the central government, which states must adhere to. This change helps guarantee fair wages and financial security.
2. Uniform Definition of Wages
The codes introduce a single definition of wages used across all four laws. This makes calculations for gratuity, PF, ESIC, bonus, and leave encashment more predictable. Basic pay must now be at least 50% of the total earnings. Although some employees may see a reduction in take–home pay, their long–term retirement and social security benefits will increase.
3. All Workers, Including Gig and Platform Workers, Now Gets Stronger Social Security
For the first time ever, gig workers and platform-based workers are part of India’s social security system. Delivery partners, app-based drivers, freelancers, and other gig professionals will be covered under schemes managed by the government. Aggregators need to contribute 1-2% of their yearly turnover, capped at 5% of the amount they pay or is payable to gig and platform workers.
This is a crucial milestone because gig work has been one of India’s fastest-growing employment categories but has long lacked formal protections.
4. Mandatory Appointment Letters
Every worker must receive a formal appointment letter. It is especially impactful for unorganized sectors where documentation was often missing. It further promotes greater clarity regarding job responsibilities, wage structures, and social security entitlements.
5. Stronger Safety and Preventive Healthcare
Employers must provide a free yearly health check–up to all workers who are 40 years old or above. Industries with hazardous processes require additional safety committees, national safety standards, and mandatory protective equipment. This helps early detection of any diseases and reduces workplace health risks.
6. Equal Employment Opportunities for Women
Women are now eligible to work night shifts if they consent and if employers provide the right safety measures. Also, equal pay for equal work is mandatory across the board, and women must be represented in grievance committees. Even parents–in–law can be added under the family definition for female employees, which widens dependent coverage.
7. Paid Leaves and Overtime Changes
Overtime must be compensated at twice the normal wage rate. Also, workers are now entitled to paid leave after 180 days of service instead of 240 days.
8. Gratuity
The labour rules changed the eligibility criterion for gratuities for workers on fixed-term contracts from five years of service to just one year. It is a one-time payment made as a token of gratitude for extended service inside the same company, and it will greatly increase short-term and project-based employees’ financial security.
9. Provision for Work from Home
Remote work will be permitted under mutual consent in the services industry, giving employers and employees more flexibility.
10. Wage Payments Must be Made on Time
To provide workers with greater financial certainty, the law mandates that businesses adhere to stringent timetables for salary distribution, such as paying monthly salaries within seven days of the next month or settling dues within two working days of an employee’s departure.
11. New Benefits for Fixed–Term Employees
Fixed–term employees now receive the same statutory benefits as permanent staff. This includes leave, medical, social security, gratuity benefits, and equal wages.
Also read: Top 10 Monetary and Non-Monetary Benefits
What It Means for Employers
For employers, the codes mean a more structured system to follow. Here are some of the changes that businesses will need to incorporate in order to comply with the revised labour code:
- Redefining job roles based on the new definitions and classification
- Revising the wage structure to align with the minimum wage code
- Improving talent acquisition practices that take into account the new framework
- Updating the payroll, HR policies, and compliance framework
These changes will reduce long-term confusion and create a more stable framework for growth and workforce planning.
What It Means for Employees
For employees, the new labour codes bring clearer rights and stronger protection. Key changes include:
- Better access to social security and welfare benefits
- More consistent wages supported by standardized rules
- Safer workplaces and clearer guidelines on leave, working hours and job terms
- Formal recognition for gig and platform workers, allowing them access to welfare schemes for the first time
These changes will help build a work environment that supports fairness, security, and employee welfare.
Suggested read: India’s Labour Laws 2020
How Onsurity is Facilitating This New Era of Work
With the new labour codes coming into play, organizations will need a reliable partner who can help them extend health and wellness benefits to every type of worker. Onsurity makes this easier by offering health and wellness plans without complicated steps or annual lock-ins for coverage. Employers pay monthly, which allows them flexibility to include full-time staff, gig workers, and fixed-term employees with ease.
Through Onsurity, teams get access to group health coverage, doctor consultations, preventive checkups, discounted medicines, and diagnostics, all in one app. HR and benefits managers get an intuitive dashboard to gather usage and adoption insights that help them make their employee benefits program more effective and reduce downtime by 80%. As companies adjust to the new framework, Onsurity acts as an enabler that helps them support their workforce in a smooth and manageable way.
Creating a Future-Ready Workforce
The new labour changes are designed to make work feel more fair on both sides. Employees get clearer rights and more protection. Companies get rules that are easier to follow and apply. When things are consistent and transparent, it avoids misunderstandings and helps everyone work better together. It also creates a steady environment where businesses can grow without constant roadblocks, and employees can feel secure about their work.
At Onsurity, we’ve always focused on one thing: making healthcare and basic wellness support easy for every kind of worker. With simple, affordable, and accessible health and wellness plans for teams of every size, including gig workers, we help you protect the people who power your business. A future-ready workforce needs future-ready benefits, and we are committed to enabling that transition.
FAQs:
1. What are the four new Labour Codes implemented in 2025?
2. When did the new Labour Codes come into effect?
The new Labour Codes came into effect on 21 November 2025, marking one of India’s biggest labour reforms in decades.
3. What is the main purpose of India’s 2025 labour law reform?
The reform aims to simplify labour laws, ensure fair wages, expand social security, improve workplace safety, and create a unified, modern labour ecosystem aligned with the vision of Aatmanirbhar Bharat.
4. Are gig and platform workers covered under the new Labour Codes?
Yes. For the first time, gig and platform workers receive social security coverage. Aggregators must contribute to a welfare fund that supports benefits like insurance and protection.
5. How does Onsurity support organizations under the new Labour Codes?
Onsurity helps companies offer simple, affordable health and wellness benefits to full-time, gig, contract, and fixed-term employees, aligning with the reform’s focus on wider worker protection.
