New Labor Laws 2026: The biggest change in the country’s labor laws in decades has been implemented. New labor codes came into effect on November 21st, impacting every employee from the organized to the unorganized sector.
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New Labor Laws 2026
New Labor Laws 2026: The biggest change in the country’s labor laws in decades has been implemented. New labor codes came into effect on November 21st, impacting every employee from the organized to the unorganized sector. The four new codes—the Code on Wages 2019, the Industrial Relations Code 2020, the Occupational Safety, Health and Working Conditions Code 2020, and the Social Security Code 2020—not only simplify regulations but also strengthen the safety and future of employees.
These changes strengthen worker protection, pay transparency, social security, and job stability. Let’s explore what changes are set to occur under the new Labor Law 2025.
Minimum Wage Guarantee: Now Every Employee Will Get Their Rights(New Labor Laws 2026)
The most significant change in the new Labor Code is the minimum wage guarantee. Now, whether employees are in the organized or unorganized sector, everyone will receive a non-discriminatory minimum wage. The central government will also set a national floor wage, preventing any state from setting a lower wage. This will bring uniformity in wages across the country and directly benefit millions of workers.
Basic Pay Will Be 50%
The definition of salary has also been changed in the rules. Now, basic pay will constitute at least 50% of the total salary. This will increase PF and gratuity deductions and may slightly reduce employees’ take-home pay. However, in the long run, it will strengthen their retirement planning and enhance social security benefits.
Gig workers will also be protected(New Labor Laws 2026)
For the first time, gig and platform workers, such as delivery partners, ride-hailing drivers, and freelancers, have been included in the social security net. Companies will be required to contribute to a special fund, which will provide them with insurance, health support, and other benefits. This change is crucial for the rapidly growing workforce in the digital world.
Gratuity will now be available after just one year of service, eliminating the 5-year requirement
One of the most significant changes is that gratuity will now be available after just one year of service. Previously, 5 years of continuous service was required for eligibility. This will prove to be a significant financial support for fixed-term contract and project-based employees.
Joining Letter Now Mandatory(New Labor Laws 2026)
Every employee will now be given a formal appointment letter upon joining the company. This will eliminate ambiguity regarding job security, responsibilities, and salary, and strengthen employee rights.
Double pay for overtime, easier access to leave
Double pay will be paid for overtime. The annual paid leave eligibility has been reduced from 240 days to 180 days, meaning employees will be entitled to leave earlier.
Night shifts allowed for women, ensuring safety
Women can now work night shifts in any sector, provided they consent and employers provide safe transportation and security. Gender-based discrimination in pay has also been completely prohibited.
Work from home granted legal recognition
Work from home became a new necessity after the pandemic. Now, it has been officially recognized. Companies and employees will be able to establish WFH arrangements by mutual consent. This feature will be implemented on a large scale, especially in the service sector.
Free health checkups for employees over 40
According to the new rules, all employees over 40 will receive a free health checkup once a year from the company. This step will play a crucial role in the early detection and prevention of lifestyle diseases.
Timely salary payments are now mandatory
The pay cycle has also been standardized. Employees with monthly salaries will receive their salaries within 7 days of each month. Upon leaving the job, the employee will be paid within 2 working days. This will ensure that employees never face payment delays.
An accident while traveling will also be considered a workplace accident
Accidents that occur while traveling to or from work will now be considered employment-related accidents. This will facilitate access to compensation and insurance benefits.
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