New Labour Code 2025: India’s job system is going to change in a big way. From November 21, 2025, the government has implemented four new labour code, replacing 29 old labour laws. These new rules are made to protect employees and bring transparency in companies.
The four labour code are:
- Code on Wages
- Industrial Relations Code
- Social Security Code
- Occupational Safety and Health Code
These laws will directly affect your appointment letter, salary structure, PF, working hours and social security benefits.
Appointment Letter Will Now Have Legal Power
Earlier, appointment letters were just a formality. But under the new labour code, the appointment letter will become a legal document.
Companies must clearly mention:
- Salary details
- Working hours
- Weekly holidays
- Leave rules
- PF, ESIC and gratuity benefits
After state governments issue notifications, companies will have to update old appointment letters. This will help employees understand their rights clearly and avoid future problems.
Basic Salary Must Be 50% of Total Salary
As per the new wage rules, the basic salary must be at least 50% of your total CTC.
What will change?
- PF contribution will increase
- Take-home salary may reduce a little
- Gratuity and bonus will increase
- Retirement savings will be higher
This rule may affect monthly salary slightly, but it will be very helpful in the long run.
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New Working Hours and Overtime Rules
The new labour law clearly sets working hours:
- Maximum 8 hours per day
- Maximum 48 hours per week
If an employee works more than this time, the company must pay overtime.
Leave rules will also be clear. Information about leave balance, carry forward and leave encashment will be written in the appointment letter.
PF, ESIC and Gratuity for Contract Employees
The Social Security Code brings good news for contract and fixed-term workers. Now:
- Contract employees
- Fixed-term employees will also get PF, ESIC and gratuity benefits.
Salary slips will show all deductions and allowances clearly making it easier to understand salary details.
Why This Labour Code Update Is Important
These new labour laws are very important for working people. They will help employees in many ways:
- Employees rights will be better protected
- Companies will have to be more clear and transparent
- Retirement savings like PF and gratuity will increase
- More workers, including contract employees, will get social security benefits
The new labour code are a big step towards a safer and fairer work environment in India.