New Labour Codes in India: Compliance Revolution or Chaos?

General Discussions
1

India’s four labour codes (Wages, Industrial Relations, Social Security, Occupational Safety) are set to replace 29 existing labour laws. They promise simplification, but for businesses, they bring new challenges.

:small_blue_diamond: Why It’s a Hot Topic in 2025

  • Implementation Uncertainty: Though passed, many states are still framing rules, leaving companies confused.

  • Impact on Salaries: New definition of “wages” could reduce take-home pay but increase PF contributions.

  • Gig & Platform Workers: For the first time, social security benefits are extended to gig workers, changing how companies classify talent.

:small_blue_diamond: What It Means for Employers

  • Redesign salary structures to stay compliant.

  • Train HR & payroll teams on new definitions and reporting requirements.

  • Prepare for audits with digital record-keeping and transparent policies.

:small_blue_diamond: What It Means for Employees

  • Higher long-term social security contributions (PF, gratuity).

  • Possible reduction in immediate take-home salary.

  • Stronger safety and welfare provisions at the workplace.

Community Manager.

4 Likes
2

Nowadays most of the virtual reality company were going to update their policies according to it

3 Likes