UPSC Preparation: 5 Key Points You Must Know About the New Labour Codes

Learn the 5 key points of India’s 2025 Labour Codes, covering salary changes, social security, women’s rights, and worker safety, essential for UPSC preparation and current affairs.

India Labour Codes 2025: As of November 21, 2025, new labour codes have replaced the old labour laws in India. These changes are not just limited to workers or employees but are also important for students preparing for UPSC and other competitive exams. The new codes bring significant changes to everyday rules regarding salary, leave, working hours, women’s safety, and social security. If you want to know how these new codes will affect the common person and job seekers, read on.

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4 Major Codes Replace 29 Old Laws

Now, 29 different labour laws in India have been consolidated into four main codes. The aim is to simplify regulations, enhance the ‘ease of doing business,’ and create a uniform framework for everyone.

  • Code on Wages, 2019 – This includes rules on minimum wages, bonuses, and equal pay.
  • Industrial Relations Code, 2020 – Rules related to trade unions, industrial disputes, and standing orders.
  • Code on Social Security, 2020 – Covers Employee Provident Fund (PF), ESIC for sickness and injury, gratuity, and maternity benefits.
  • Occupational Safety, Health & Working Conditions Code, 2020 – Rules related to safety and health in factories and mines.

Changes in Social Security and Wages

  • Gig and Platform Workers – Legal protection has now been established for freelancers and app-based workers.
  • National Floor Wage – A national level for minimum wage has been set, which states cannot reduce.
  • Appointment Letter – It is now mandatory to provide a written job letter, no matter how small the job is.

Industrial Relations and Retrenchment Rules

  • Retrenchment Threshold – The threshold for retrenchment and closure has been raised from 100 to 300 employees.
  • Fixed-Term Employment – Fixed-term employees will now receive facilities similar to permanent employees, and gratuity will be available after just one year.

Safety and Rights for Women

  • Equal Remuneration – Women will receive equal pay for equal work.
  • Night Shifts & All Sectors – Women can now work night shifts in factories, mines, and other industries, provided safety measures are in place.

Safety, Health, and Welfare

  • Annual Health Check-ups – Free health check-ups are now mandatory for employees over 40.
  • Accident Coverage During Travel – Accidents occurring while traveling from home to the office or for any work-related purpose will now be covered.
  • Simplified Compliance – Small and medium-sized enterprises (MSMEs) will get relief by now having to complete only one registration, one license, and one return filing.

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