Economy, 10:30 AM IST – In a major policy shift, the Government of India has made all four Labour Codes effective from 21 November 2025, replacing 29 old labour laws that had been unchanged for decades. As per the Ministry of Labour & Employment PIB Press release, these new rules directly impact salary structure, PF, gratuity, working hours, social security, and the overall way companies hire and manage workers.
Here are the Top 10 real changes that matter to employees and businesses starting November 21, 2025.
1. Salary Structure Changes (Basic = 50% Rule)
Companies must now keep 50% of the salary as basic pay.
This means:
- PF will increase
- Gratuity amount increases
- Take-home salary may be reduced for some workers
Example:
- If your CTC is ₹30,000/month:
- Earlier basic could be ₹9,000 → now it must be ₹15,000.
2. PF Will Increase Automatically
Since PF is calculated on basic salary, a higher basic = a higher PF.
Your monthly income may drop, but retirement savings grow faster.
3. Gratuity Becomes Faster — Now 1 Year for FTE
Fixed-term employees are workers hired for a specific duration (like 6 months or 1 year) but with the same rights and benefits as permanent staff.
- Fixed-term employees (FTE) can now get gratuity after 1 year of service.
- Before this rule, everyone needed at least 5 years.
This helps IT, MSMEs, gig-linked teams and high-turnover sectors.
4. Appointment Letter Mandatory for Every Worker
Every company must give a written appointment letter; it applies even for helpers, drivers, office staff or store workers.
This gives workers proof of job, salary, and rights.
5. Minimum Wages for All Sectors, Not Selected Ones
Previously, minimum wages applied only to selected industries.
Now all workers must be paid minimum wages as per government rates.
6. Free Annual Health Check-up (40+ Age)
Workers aged 40 and above must receive a free yearly health check-up from their employer.
This is the first time regular health screening has been made compulsory.
7. Women Can Work in All Roles, Including Night Shifts
Women can now work:
- Night shifts
- Mines
- Hazardous industries
- Heavy machinery sectors
But only if they give consent and the workplace makes sure to a proper safety rules.
8. National Floor Wage Introduced
The government will set a nationwide minimum wage floor, ensuring pay doesn’t drop below a basic standard across states.
State wages must be equal to or above this floor.
9. Single Licence, Single Registration, Single Return
Businesses no longer need multiple registrations for different labour laws. One national licence and one return reduce compliance costs. it really helpful for startups and MSMEs.
10. Social Security Coverage Extended to Gig & Platform Workers
Gig workers (Swiggy, Zomato, Uber, Ola, delivery partners) and platform-based workers are now covered under social security.
Companies must contribute a small percentage of turnover to their welfare.
Before–After Comparison: What Actually Changed?
| Topic | Before (Old System) | After (New Labour Codes) |
|---|---|---|
| Basic Salary Structure | No fixed rules; often 25–35% | Basic must be 50% of CTC |
| PF Impact | PF stayed low | PF increases automatically |
| Gratuity | Only after 5 years | 1 year for FTE; better payout |
| Minimum Wages | Limited to selected jobs | All workers covered |
| Women Working Rights | Night shift restrictions | Full access with safety |
| Health Check-ups | Not required | Free annual check-up (40+) |
| Gig Worker Benefits | No formal benefits | Social security introduced |
| Compliance | Multiple licences | One national licence |
Earlier, India’s labour rules were scattered all over the place. Different laws, different conditions, and no clear system — workers stayed confused, businesses stayed stuck. With the new Labour Codes, everything finally sits in one place. The rules are simpler, the process feels cleaner, and the impact is direct.
Salaries follow a standard structure, PF and gratuity actually increase, women get genuine opportunities beyond day shifts, health check-ups become routine for older workers, and gig workers. who were previously ignored, now finally receive recognition.
On the business side, the headache of multiple licences and filings is gone—one registration, one return, and done.
In short, workers get more security, businesses are now more paperless or we say digital, and the labour system finally moves into 2025 instead of staying in the 1950s.
