India’s New Labour Laws explained: Salary, PF, overtime, gig workers | What changes for you?

The Modi government has brought four new labour codes into effect from November 21, 2025, replacing 29 old labour laws. These new rules change how companies hire, manage and pay workers. Employees will get several benefits such as universal minimum wages, clearer social security, faster gratuity, formal appointment letters, and recognition for gig and platform workers. Women can legally work night shifts with safety measures. A single definition of "wages” now applies across all laws, which may increase PF and gratuity contributions and reduce take-home pay for some employees.

Workers are now clearly defined and get specific rights like overtime, leave encashment and safer working conditions. Fixed-term workers will get the same benefits as permanent staff, including gratuity after one year. Companies with fewer than 300 workers can now lay off staff without prior government approval. Gig workers will receive social security funded partly by aggregators. Employers must revise salary structures, HR policies and compliance systems to meet the new rules.