29/11/2025
📢 New Labour Codes 2025 – What Changes for You? (Employee + Employer View)
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👨💼 EMPLOYEES – What’s Changing?
✔ Higher PF, Lower Take-Home
Basic salary = 50% rule → PF contributions increase → long-term savings grow.
✔ Better Job Security
Stricter rules on layoffs, retrenchment & fixed-term benefits.
✔ More Social Security
PF, ESI, gratuity coverage expands; gig & platform workers included.
✔ Faster Gratuity Eligibility
Fixed-term employees get pro-rated gratuity—no need for 5 years.
✔ Improved Work Conditions
Annual health check-ups, safer workplaces, women’s night-shift protections.
✔ Clear Working Hours
48-hour week, standardized overtime rules.
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🏢 EMPLOYERS – What’s Changing?
✔ Higher Payroll Cost
PF & gratuity costs rise due to revised wage definition.
✔ Simplified Compliance
One license, unified returns & digital records → easier governance.
✔ Flexible Hiring
Fixed-Term Employment recognized for project-based roles.
✔ Stronger IR Framework
Notice period for strikes + faster dispute resolution.
✔ Higher Safety Accountability
Mandatory safety audits & workplace health norms.
✔ Digital Compliance
Online filings, digital registers, automated processes.
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✨ Overall:
Better social security & safety for employees + easier, digitized compliance for employers (with slightly higher costs).