India has recently implemented major reforms in labour regulations by introducing four new Labour Codes, replacing over 29 old labour laws. These changes aim to simplify compliance, improve worker protection, and make employment regulations more transparent for both employees and employers.
Overview of the New Labour Codes
The four new codes are:
- Code on Wages
- Industrial Relations Code
- Social Security Code
- Occupational Safety, Health & Working Conditions Code
These codes combine various outdated labour laws into a modern, easy-to-understand framework.
Key Changes for Employees
✔ Universal Minimum Wage
All workers — including unorganized and informal sector workers — are now entitled to a minimum guaranteed wage.
✔ Expanded Social Security
Gig workers, platform workers, contract workers, and unorganized workers are now covered under social security benefits such as PF, ESI, insurance, and pension schemes.
✔ Appointment Letters Mandatory
Every employee must receive a formal appointment letter, improving transparency and job security.
✔ Better Safety & Working Conditions
Stronger standards for workplace safety, working hours, health checks, and welfare facilities.
Key Changes for Employees
✔ New Definition of Wages
The wage structure has changed — basic salary must form a minimum portion of total CTC. This will impact PF, gratuity, and other statutory contributions.
✔ Simplified Compliance
Multiple registrations and filings under different old laws are now merged under single rules, reducing paperwork and procedural delays.
✔ Higher Accountability
Non-compliance can lead to stricter penalties. Employers must maintain clean records and follow updated PF, ESI, safety, and salary guidelines.
Summary of What Has Changed
| Before | Now (2025) |
|---|---|
| 29 separate labour laws | 4 consolidated Labour Codes |
| Limited social security | Coverage extended to gig & platform workers |
| Complex wage structure | Clear and uniform definition of wages |
| Multiple compliance filings | Integrated and simplified system |
What Businesses Should Do Now
/Review and update the salary structure as per the new wage definition.
Ensure PF, ESI, gratuity, and safety compliance are up to date.
Maintain proper employment records, appointment letters, and registers.
If you employ gig or contract workers, ensure they are added under applicable social security schemes.
Need Help With Compliance?
If these new rules feel confusing, we can help.
At GurgaonCompliance.in, we handle everything — GST filings, ITR, PF–ESI returns, payroll compliance, and company/MSME registrations.
Contact us for quick guidance and end-to-end compliance support.