India overhauls labour laws: Minimum wage, 48-hour work week, bonus after 30 days

The Centre on Friday announced the implementation of four consolidated labour codes—the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020). The move amalgamates 29 existing labour laws into four, with an aim to simplify compliance, strengthen worker protection, and align India’s labour framework with evolving employment practices.

Key Highlights

The government has now formalised employment documentation, making it mandatory for employers to issue a written appointment letter to every worker. The reform also expands social security benefits to all categories of workers, including gig and platform workers under the Social Security Code.

"Aggregators must contribute 1–2% of their annual turnover, capped at 5% of the amount paid or payable to gig and platform workers, towards social security funds," according to the Ministry of Labour & Employment.

Additionally, employers must provide free annual health check-ups for all workers aged 40 years and above.

All workers will now have a statutory right to minimum wages, and employers are mandated to ensure timely wage payments. The government has capped working hours at 8–12 hours per day, with a maximum of 48 hours per week. Workers will also be eligible for a bonus upon completing 30 days of work in a year.

Additionally, women can now work at night and in all types of roles across establishments, provided they consent and employers ensure safety. Earlier laws restricted night shifts and certain job categories for women.

The government has made ESIC coverage mandatory for any establishment with at least one employee engaged in hazardous work, while it remains voluntary for establishments with fewer than 10 workers.