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India’s four labour codes came into force on 21 November 2025, replacing 29 older laws with a single framework on wages, industrial relations, social security, and workplace safety. For employees, the most visible changes are likely to show up in salary structures and in how working hours are planned and rostered.
For employees, the biggest change could be witnessed in two places that add a shift to the routine: how salary is structured and how working hours are re-cast. In India, some organisations run four working days a week, some run five, some run six, and some operate all seven days while still ensuring a weekly off on a staggered basis to remain compliant.
The Code on Wages defines and re-orders a uniform pattern of wages across labour laws. In practice, this uniformity and consistency is expected to deter companies from parking large chunks of salary amounts in allowances merely to keep statutory deductions at the lowest possible level.
PF contributions may increase because PF is calculated on basic wages. A higher basic wage typically means a higher PF deduction and contribution.
Gratuity payouts may rise due to the cascading effect of a higher wage base, depending on eligibility and how wages are defined and computed.
Employers may restructure components to balance costs. This could result in a lower take-home salary even when total remuneration remains unchanged.
Salary delays can attract penalties. Employers may need to tighten payroll calendars to avoid compliance exposure.
The codes maintain the ceiling of eight hours a day and forty-eight hours a week, but introduce flexibility in how the weekly cap may be distributed across working days. This means a four-day working week can be legally possible, subject to state rules and employer policy, while staying within the forty-eight hour cap.
Earlier quarterly overtime limits under older rules are no longer uniform nationally, and states may set higher overtime limits. Public debates around very high weekly work hours have also highlighted the need to balance business demands with employee wellbeing.
Recent discussions on extended workweeks have generated debate in the corporate sector, raising concerns around employee health, sustainable productivity, and the social cost of extreme working hours.
Another recent example of rostering complexity is the aviation sector, where duty time and rest period requirements under flight duty time limitations have triggered operational challenges. Strict rest and duty hour prescriptions can lead to workforce shortages and schedule disruptions, reinforcing why careful rule design and practical implementation are critical.
There is a saying that the proof is in the eating and not in the making. The labour codes are expected to move India towards a cleaner, leaner, clearer and more portable labour system. However, the real impact will depend on user-friendly state rules and the sincerity with which employers implement them.
If state rules support practical flexibility and employers implement them responsibly, the rewired experience of payslips and rostering can become a progressive shift that improves clarity, consistency and predictability for employees and organisations alike.
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