HR Weekly Updates - Fourth Week - November 2025

Covering News & Updates from 21st Nov to 28th Nov 2025.

This week marks a historic turning point for Indian HR professionals. After years of waiting, the Government of India has officially notified and implemented the four new Labour Codes, fundamentally reshaping our compliance landscape.

Here is your executive summary of the critical changes that came into effect this week.

1. Historic Shift: 4 New Labour Codes Effective from Nov 21

In a landmark move, the Ministry of Labour & Employment announced that all four Labour Codes -Code on Wages, IR Code, Social Security Code, and OSH Code are effective from November 21, 2025. These codes replace 29 outdated central labour laws.

Key Immediate Changes for HR:

• Universal Minimum Wage: Every employee in India now has a statutory right to minimum wages, regardless of sector.

• The "50% Rule" for Salary: Basic Pay + DA + Retaining Allowance must equal at least 50% of the total CTC. This structural change will increase PF and Gratuity liability for employers but may reduce take-home pay for employees.

• Fixed-Term Gratuity: Fixed-Term Employees (FTE) are now eligible for gratuity after just 1 year of service (reduced from 5 years).

• Digitization: A new "Single Registration, Single License, Single Return" system is now in effect to ease compliance burden.

HR Takeaway: You must immediately review your salary structures (CTC breakup) and employment contracts to ensure they comply with the new "Wages" definition. 

Source: PIB India - Labour Reforms Notification

2. Trade Unions Announce Nationwide Protest

While the industry has welcomed the codes for "Ease of Doing Business," major Trade Unions including INTUC, AITUC, and CITU have voiced strong opposition.

• The Conflict: Unions have labeled the codes "anti-worker," citing concerns over easier retrenchment rules (companies with up to 300 workers can now lay off staff without government permission).

• The Action: A nationwide protest was called on November 26, 2025, demanding the withdrawal of the codes.

• HR Takeaway: Expect potential unrest or queries from unionized staff members. Open communication about how these codes benefit workers (better social security) will be key to maintaining industrial peace.  

Source: New Indian Express - Trade Union Protests

3. Gig Workers Get Legal Recognition & Social Security

For the first time in history, India's Gig and Platform Workers (like delivery partners and freelancers) are legally recognized under the Code on Social Security, 2020.

• The Change: Aggregators (like Uber, Zomato, etc.) must now contribute 1-2% of their annual turnover to a dedicated Social Security Fund for these workers.

• The Benefit: Gig workers will now have access to health, maternity, and disability benefits via a new Aadhaar-linked Universal Account Number (UAN).

• HR Takeaway: If your company hires gig workers or freelancers, you need to register them on the upcoming national portal to ensure compliance. 

Source: Economic Times - Gig Worker Security

4. Women Allowed in Night Shifts (Across All Sectors)

The OSH Code, 2020 has removed restrictions on women working night shifts, effective immediately.

• The Rule: Women can now work in any establishment (including factories and mines) between 7 PM and 6 AM.

• The Condition: Employers must obtain written consent from the female employee and ensure adequate safety, shelter, and transportation.

• HR Takeaway: Update your shift policies. If you plan to roster women for night shifts, ensure your transport and safety protocols are audit-ready to avoid heavy penalties. 

Source: Times of India - Women Night Shift Rules

5. Mandatory Annual Health Check-ups

Under the new OSH Code, employers in certain sectors are now mandated to provide free annual health check-ups for employees.

• The Requirement: Employers must provide free annual health check-ups for all employees above a certain age (typically 45+ years, though specific rules may vary by state) to promote preventive healthcare.

• HR Takeaway: Budget for this compliance cost in your upcoming financial planning for 2026.

Source: ForumIAS - OSH Code Analysis

Quick Bites: Other HR News

• The "2025 Layoff Wave" Continues: Reports indicate a "structural shift" in hiring. Companies are moving away from hiring "generalists" and are specifically hiring for AI-integration roles, widening the skills gap. Focus on reskilling your current workforce.

• New Gratuity Rules for "Fixed Term" Employees: Confirmed! Fixed-Term Employees (FTEs) are now eligible for gratuity after just 1 year of service. Update your cost calculations for contract staff immediately.

• Skill India Mission Update: The Ministry of Skill Development flagged off the Indian contingent for the WorldSkills Asia Competition 2025. This highlights the government's massive push on Vocational Training. Check if your organization is compliant with Apprenticeship Act targets.

One-Line Summary for the Week

"The era of 29 complex labour laws is over; the era of 4 unified codes has begun—bringing higher social security for workers but stricter compliance for employers."

Have you updated your salary structures yet? Let me know in the comments!

Stay tuned for next week's update!

By Mit | HR Professional 

You may like to see : The Historic Journey of India’s Labour Codes (2002–2025)

The 'Chalta Hai' Syndrome: How to Fix the Culture of Mediocrity Without Firing Your Team

We have all heard it. It is the background noise of the Indian corporate machine. "Sir, the report is 90% done, just a few small data points are missing. Chalta hai na?" (It’s fine, right?) "The logo is stretched, but the client won't notice. Chalta hai."

Loosely translated, "Chalta Hai" means "It will do" or "Let it pass." In our social lives, this attitude makes us resilient and flexible. But in a professional environment, it is a cancer. It transforms deadlines into "suggestions" and turns quality standards into "optional guidelines." It is the root cause of why many promising companies hit a "growth ceiling" they cannot break through.

As HR professionals and managers, we often feel trapped between accepting mediocrity (The Micromanager Trap) or firing everyone (The High Turnover Trap).

But there is a third option: Cultural Transformation. You can coach the "Chalta Hai" out of your team, but it requires you to stop acting like a Boss and start acting like a Cultural Architect. Here is the comprehensive guide to fixing the casual attitude without issuing a single pink slip.

Part 1: Root Cause Analysis (Why do we do it?)

Before we fix it, we must understand it. "Chalta Hai" is rarely born out of laziness; it stems from deep-seated organizational habits.

1. The "Jugaad" Hero Complex: We culturally hero-worship the manager who stays until 2:00 AM to fix a crisis with duct tape. We ignore the quiet employee who planned ahead and finished at 5:00 PM. We have taught our teams that Crisis Management is valuable, but Crisis Prevention is invisible.

2. Fear of Authority: In hierarchical structures, saying "No" to a deadline is seen as insubordination. So, the employee says "Yes," knowing they will fail, and relies on "Chalta Hai" to soften the blow later.

3. Lack of Consequences: If a deadline is missed and the sky doesn't fall, the brain learns a simple lesson: Deadlines are not real.

Part 2: The 5-Step Framework for Accountability

You don't need a new HR policy manual. You need to change the daily micro-interactions between managers and teams.

Step 1: Kill the "Late Night Hero" (Reward Efficiency, Not Effort) You must stop rewarding the wrong behavior. In many offices, sending emails at 11:30 PM is seen as "dedicated."

• The Fix: When someone stays late to fix a preventable error, do not praise them. Hold a Process Correction Meeting.

• The Script: "I noticed you were online until midnight fixing the data. I appreciate the effort, but we need to discuss why this was necessary. What process failed on Tuesday that forced you to sacrifice your personal time on Thursday?"

• The Shift: This shifts the focus from Effort to Efficiency.

Step 2: Implement the "Definition of Done" (Escaping Ambiguity) "Chalta Hai" thrives in ambiguity. If you give vague instructions, you invite casual results.

• The Fix: Borrow the "Definition of Done" (DoD) concept from Agile Methodology. Before assigning a task, define exactly what "Finished" looks like.

• The Script: "I need the Report by Friday. By 'Done,' I mean: 1) It must include Mumbai data, 2) It must be in PDF format, and 3) It must have zero spelling errors."

• The Result: When the bar is set specifically, you remove the grey area where excuses live.

Step 3: The "No Surprise" Rule (Building Psychological Safety) Why do employees wait until the deadline to tell you they are failing? Fear. They hope a miracle will happen.

• The Rule: "You are allowed to miss a deadline. But you are NOT allowed to Surprise me."

• The Logic: If an employee tells you on Wednesday that they are stuck, you can solve it. If they tell you on Friday at 5:00 PM, that is not a delay—that is disrespect.

• The Result: You reward Early Bad News. This builds Psychological Safety, removing the need for last-minute excuses.

Step 4: The Power of Rejection (The Quality Gate) As managers, our instinct is to fix mistakes ourselves to save time. Stop doing this. When you fix their work, you teach them that you are the safety net.

• The Fix: Create a Quality Gate. If work does not meet the "Definition of Done," reject it immediately and impersonally.

• The Script: "I reviewed the draft. The formatting does not match our brand guidelines. I have not read the rest. Please fix these issues and resend it to me by 4:00 PM."

• The Result: The employee realizes, "If I don't check my work, the boss won't even look at it." They become their own Quality Control.

Step 5: Connect the Task to Business Impact Employees often view tasks as transactions, not impacts. "So what if there is a typo in the offer letter?"

• The Fix: Explain the commercial consequence.

• The Script: "A typo in an Offer Letter isn't just a spelling mistake. It signals to the candidate that we are a careless company. They might reject the offer, costing us ₹5 Lakhs in lost revenue. That is why accuracy matters."

• The Result: You move them from Compliance ("I do it because boss said so") to Commitment ("I do it because it matters").

Part 3: The Leader’s Mirror 

Cultural change flows from the top down. If you arrive 10 minutes late to meetings, or if you delay approvals until the last minute, you are validating the "Chalta Hai" culture. You cannot demand excellence if you model mediocrity.

• The Leadership Test: Start meetings on the dot. Send error-free emails. Respect your own deadlines.

Fixing a "Chalta Hai" culture is not about being a dictator. It is about raising the standard of self-respect in your team.

It will be uncomfortable for the first 30 days. But eventually, the magic happens. One day, an employee will spot an error in a peer's work and say, "Hey, fix that before you send it. It’s not up to our standard." That is the day you win. That is the day a culture of Excellence is born.

By HRMit | HR Professional

Ghosted! Why Candidates Disappear on Day 1 and How to Stop It

We have all been there.

You spent two months sourcing candidates. You conducted three rounds of interviews. You negotiated the salary, got the budget approved and sent the offer letter. The candidate accepted, said "Thank you so much," and promised to join on the 1st of the month.

The 1st arrives. You have the laptop ready. The team is waiting. 9:00 AM: No show. 10:00 AM: You call. No answer. 11:00 AM: Phone switched off.

You have been ghosted.

In the Indian job market, "Offer Shopping" has become an epidemic. Candidates accept an offer not because they intend to join, but because they need a "safety net" while they hunt for a better one. Or worse, they use your offer letter just to get a counter-offer raise from their current boss.

It is frustrating, expensive and embarrassing for HR professionals. But is it entirely out of our control?

I believe we can stop 80% of dropouts if we change how we handle the "Notice Period Gap."

Why Do They Ghost? : The Indian Context

To fix the problem, we must understand the root cause. In India, we have a unique problem: The 90-Day Notice Period.

In many western countries, notice periods are 2 weeks. In India, they are often 2 to 3 months. That is a dangerously long time. During this "Gap," three things happen:

1. The "Bidding War": Your candidate is now a "hot commodity." They have a job in hand, which gives them confidence to interview with 5 other companies.

2. The Counter-Offer: Their current manager panics and offers a 20% hike to stay. Since it’s comfortable to stay, they often accept.

3. The "Cold Feet": They start doubting. "Is the new company stable? Will the manager be nice?" If you are silent during this time, their doubt grows.

Phase 1: The Employer Defense (Stopping the Bidding War)

Before we even talk about engagement, we need to stop them from shopping your offer letter around. You need a strong defense strategy.

1. The "Proof of Existence" Rule Never negotiate against a ghost number. If a candidate claims they have a higher offer, you have the right to verify it.

• Say this: "That is great news. To proceed with any counter-approval internally, my finance team requires a copy of that offer letter for a parity check. Please share it so I can see what we can do."

• Why it works: If they are bluffing, they will back down. If they share it, you can check if that "higher package" is actually just inflated variable pay.

2. Match, Don't Exceed If they are joining you only for money, they will leave you for money.

• The Strategy: Offer to match the competing offer, but sell your Non-Monetary Benefits (Work-life balance, Brand, Job Role).

• Say this: "We can match that figure. But at our company, you get X growth and Y culture, which Company A cannot give you."

3. The "Exploding Offer" Stop giving candidates 60 days to think. When you release an offer, put a strict expiry on it.

• The Tactic: "Here is your offer letter. We need your formal acceptance and signature within 48 hours, or the system will automatically withdraw the offer."

• Why it works: It forces them to commit now, removing their ability to use your letter as leverage with other companies for weeks.

4. The "Buyout & Board" : The Speed Option If you sense the candidate is high-risk, remove the "Time" factor entirely.

• The Tactic: Offer to reimburse their Notice Period payout so they can leave their current job early.

• The Pitch: "We have a critical project starting. If you can negotiate an early release, we will reimburse the notice period amount in your first month's salary."

• Safety Tip: Always add a "Clawback Clause" in the offer letter requiring them to repay this amount if they leave within 12 months.

5. The "1:3 Selection Rule" : Never Bet on One Horse The biggest mistake is rejecting your backup candidates too early.

• The Strategy: For every critical role, identify 3 appointable candidates. Make the offer to Candidate A, but keep Candidates B and C "warm" for 2 weeks.

• The Power Move: If Candidate A starts playing games or demanding unreasonable hikes, you can confidently withdraw the offer and move to Candidate B who actually values the opportunity.

Phase 2: The "Bridge" Strategy : Keeping Them Warm

Once they have signed, the deal is NOT closed. You must build a "Bridge" of engagement across that 3-month gap.

1. The "Micro-Commitment" Strategy Don't ask for everything at once. Ask for small things throughout the notice period to keep them psychologically committed.

• Week 1: Ask for a high-quality photo for their ID card.

• Week 3: Ask for their T-shirt size for the welcome kit.

• Week 5: Send them a "PF Transfer Form" or document to review.

2. The "Future Pace" Technique Stop talking about "The Offer" and start talking about "The Work."

• Have the Hiring Manager call them 3 weeks before joining—not to check in, but to discuss a project. "Hey, we’re starting this new project next month and I’m really excited to have you lead it."

• This makes them feel like they are already part of the team. It makes it much harder for them to betray a person they are already working with.

3. Send the "Welcome Kit" EARLY This is my favorite trick. Do not wait for Day 1. Send a small welcome gift (a mug, a diary, a chocolate box) to their home address 10 days before they join.

• Why this works: When their family sees the gift, the commitment becomes social. It’s harder to ghost a company that just sent you chocolates.

What to do if you suspect they are ghosting?

Look for the Red Flags:

• They stop picking up calls instantly.

• They delay sending documents.

• They become vague about their "Last Working Day."

If you see these, confront it gently but directly. "Hi XYZ, I sense you might be having second thoughts. That is perfectly normal. If you have decided to stay or go elsewhere, I would really appreciate a heads-up so I can plan. We value transparency."

Sometimes, giving them permission to say "No" saves you 2 weeks of waiting, allowing you to activate your backup candidate immediately.

You cannot stop 100% of dropouts. It’s part of the game. But by treating the Notice Period as a phase of Recruitment rather than a waiting room, you can drastically reduce the "Ghosting" rate.

Don't let your candidate forget why they chose you. Keep the excitement alive until Day 1.

Have you ever had a candidate ghost you on the day of joining? How did you handle it? Share your horror stories (and solutions) in the comments below!

By Mit | HR Professional

The OSH Code - 2020: One License, Contract Labour & Women’s Rights

If the Wage Code is about money and the IR Code is about power, the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 is about operations.

It consolidates 13 old Acts including the Factories Act and the Contract Labour (CLRA) Act into one. The goal? To finally modernize workplace safety in India and drastically reduce the "License Raj" that has plagued manufacturing and operations for decades.

Here is what you need to know to keep your factory, office or warehouse compliant.

1. The "Big Ticket" Changes

A. Single License (One Nation, One License)

• The Old Way: You likely had separate licenses for Contract Labour, Inter-state Migrant Workmen and your Factory. It was a paperwork headache that required constant renewals.

• The New Rule: You now apply for a single, all-encompassing Common License for the establishment.

• Impact: A massive reduction in paperwork and renewal cycles. One application, one license, done.

B. Women in Night Shifts

• The Old Way: Women were generally prohibited from working night shifts (7 PM to 6 AM) in factories or faced heavy restrictions.

• The New Rule: Women are now allowed to work night shifts in all sectors including IT, manufacturing and logistics.

• The Catch: You must have the employee's consent and you must provide safety and transportation (home pick-up/drop).

C. Contract Labour Threshold

• The Old Way: The Act applied if you had 20+ contract workers.

• The New Rule: The threshold is raised to 50+ contract workers.

• Impact: Smaller contractors are deregulated. But be careful because the "Principal Employer" liability for unpaid wages remains, so you still need to vet your vendors well.

2. The "Fine Print" (Small Changes, Big Impact)

• Appointment Letters: This is now mandatory. You must issue a formal Appointment Letter to every employee (yes, including daily wagers and contract staff). Failure to do so is a punishable offence.

• Leave Encashment: Employees can now encash unavailed leave at the end of the calendar year. Also, eligibility for leave starts after working 180 days (reduced from the old 240 days).

• Free Health Check-up: Employers must provide a free annual health check-up for employees above a certain age (40 years).

• Journey Allowance: If you employ Inter-State Migrant Workers, you must pay a lump sum "Journey Allowance" (to and fro fare) once a year for them to visit their hometown.

• Core vs. Non-Core: Contract labour is prohibited in "Core Activities" unless there is a sudden spike in volume or the activity is ordinarily done through contractors.

3. Action Plan for Employers

Step 1: Apply for Unified License

Log in to the Shram Suvidha Portal (or your State’s equivalent).

Action: Migrate your existing CLRA and Factory licenses to the new OSH Code License. Don't wait for the deadline.

Step 2: Draft "Women Safety Policy"

If you plan to employ women at night:

Action: You need a documented policy covering GPS-tracked cabs, CCTV monitoring and POSH compliance. Without this paperwork, operating night shifts is illegal.

Step 3: Annual Budgeting

Action: Add two new line items to your HR budget: Annual Health Check-up (for staff aged 40+) and Journey Allowance (for migrant workers).

4. Compliance Checklist

• [ ] Contractor Audit: Even if the threshold is 50, verify that your contractors are paying PF/ESI. You are still on the hook as the Principal Employer.

• [ ] Leave Policy: Update your HRMS logic to trigger leave eligibility at 180 days.

• [ ] Safety Committee: Mandatory for establishments with 250+ workers (Factories/Mines). Ensure this committee is constituted and meets regularly.

Conclusion: The End of the Beginning

With the OSH Code, we have completed our journey through the "Great Labour Reset." From restructuring salaries under the Wage Code to managing unions under the IR Code and ensuring safety under OSH, the Indian HR landscape has completely transformed.

Compliance is no longer just about maintaining registers; it’s about strategic agility. The businesses that adapt their payroll, policies and operations to these new Codes today will be the ones that thrive in the competitive market of tomorrow.

Missed a part of the series? Catch up here:

• Part 1: The Code on Wages, 2019

• Part 2: The Code on Social Security, 2020

• Part 3: The Industrial Relations (IR) Code, 2020

By:  MIT HR Professional

The Industrial Relations (IR) Code, 2020: Balancing Flexibility with Discipline

Think of the Industrial Relations (IR) Code, 2020 as the new rulebook for the power dynamic between "Management" and "Unions." It retires three of the most contentious laws in Indian history: 

• The Industrial Disputes Act, 1947, 
• The Trade Unions Act, 1926, and 
• The Industrial Employment (Standing Orders) Act, 1946.

For decades, these laws often created a rigid, adversarial environment - an "Us vs. Them" battleground. The new IR Code attempts to reset this board. It proposes a grand bargain: Employers get the flexibility to resize their workforce to match market realities (without begging for government permission), while Unions face stricter discipline to prevent disruptive flash strikes. It's a shift from confrontation to negotiation. Here is how the balance has changed.

1. The "Big Ticket" Changes

A. The "300 Worker" Threshold

• The Old Way: If you had 100+ workers, you needed Government permission to lay off staff, retrench people, or close down. It was a bureaucratic nightmare.

• The New Rule: That threshold has been raised to 300+.

• Impact: If you are a mid-sized company (100–299 employees), you can now retrench staff or close units based on market realities without waiting for government approval. (Note: You still have to pay retrenchment compensation, but you don't need the permission).

B. The Death of "Flash Strikes"

• The Old Way: Mandatory strike notices mainly applied to "Public Utility Services."

• The New Rule: Employees in ALL industrial establishments must give a 14-day notice before going on strike.

• Impact: No more waking up to a "Tool-down" strike declared overnight. Those are now illegal. Participation in illegal strikes can lead to wage deductions (up to 8 days' penal deduction).

C. Sole Negotiating Union

• The New Rule: Dealing with multiple fragmented unions? The Code fixes that. If a company has multiple unions, the one with 51% membership will be recognized as the "Sole Negotiating Union." If no one has 51%, a "Negotiating Council" is formed.

2. The "Fine Print" (Small Changes, Big Impact)

• Worker Reskilling Fund (Section 83): This is a brand new line item on your expense sheet. In case of retrenchment, you must contribute 15 days of the last drawn wages to a "Worker Reskilling Fund" (which eventually goes to the worker).

• Grievance Redressal Committee: Have 20+ workers? You must have this committee. It needs equal representation of employers and workers, and the Chairperson position has to rotate annually.

• Mass Casual Leave: The Code gets smart about strikes. It defines a "Strike" to include concerted casual leave by 50% or more workers on a given day.

• Compounding of Offences: Good news for compliance managers: First-time offences that don't carry imprisonment can now be "compounded" (settled by paying a fine) without dragging you into a court trial.

3. Action Plan for Employers

Step 1: Check Your Employee Count

Action: If you fall in the 100–299 employee bracket, revisit your Separation Policy. You’ve gained significant flexibility, but you must follow the correct notice and compensation procedure to avoid disputes.

Step 2: Update Separation Costs

Update your "Severance Cost Calculator."

New Formula: Gratuity + Notice Pay + Retrenchment Compensation + 15 Days Reskilling Fund.

Step 3: Adopt Model Standing Orders

If you have <300 employees, you are technically exempt from certifying Standing Orders.

Strategy: Don't leave a void. Adopt the "Model Standing Orders" voluntarily as your internal Service Rules. This gives you legal backing for disciplinary actions (suspension, inquiry) if you ever get challenged in court.

4. Compliance Checklist

• [ ] Biometric Attendance: This is crucial for proving "Concerted Mass Leave" if you face an illegal strike.

• [ ] Committee Formation: Officially constitute the "Grievance Redressal Committee" if you have >20 staff. Don't just have it on paper; make it real.

• [ ] Union Communication: Formally notify your union leaders about the new 14-day strike notice requirement so everyone is on the same page.

Conclusion: A Strategic Shift in Labor Management

The Industrial Relations Code moves us away from the adversarial "Us vs. Them" mentality of the 1947 Act to a more structured, negotiation-based environment. By raising the retrenchment threshold, it encourages businesses to scale up without fear of bureaucratic traps. However, with the new "Reskilling Fund" and stricter grievance redressal norms, the cost of compliance has not vanished, it has simply shifted.

You’ve mastered Wages, Social Security, and Industrial Relations. Now, let’s tackle the operational side of things : safety, licenses, and working conditions in the final pillar of this series.

Next Up: The OSH Code, 2020: One License, Contract Labour & Women’s Rights

By: MIT HR Professional

The Code on Social Security, 2020: New Liabilities for Hiring & Firing

If you have ever felt overwhelmed by the sheer number of welfare laws in India, you are not alone. Think of the Code on Social Security, 2020 as the ultimate "Welfare" update for your workforce. It takes 9 distinct Acts including EPF, ESI, Gratuity and Maternity Benefit and rolls them into one universal umbrella.

But it’s not just a consolidation. It introduces completely new concepts like "Gig Worker Rights" and changes the rules on Gratuity that you definitely need to budget for.

1. The "Big Ticket" Changes

A. Gratuity for Fixed Term Employees (FTE)

• The Old Way: We all knew the rule: An employee needed 5 continuous years of service to get Gratuity.

• The New Rule: That rule is gone for Fixed Term Employees. If you hire someone on a contract for a specific duration, they are eligible for Gratuity on a pro-rata basis, even if they only work for 1 year.

• Impact: Hiring short-term contract staff is no longer a "hack" to save on Gratuity costs (which is roughly 4.81% of Basic).

B. The Gig Economy Levy

• The New Rule: If you run a platform business (like Uber, Zomato, Urban Company), get ready to pay up. Aggregators must now contribute 1% to 2% of their annual turnover to a Social Security Fund.

• Purpose: This fund is essentially a safety net, providing health, maternity and disability benefits to gig and platform workers who previously had none.

C. Voluntary PF Coverage

• The Old Way: PF was mandatory only if you had 20+ employees.

• The New Rule: Have fewer than 20 employees? You can now voluntarily opt-in for PF if the employer and the majority of employees agree. It’s a great way to offer benefits even as a small business.

2. The "Fine Print" (Small Changes, Big Impact)

• Aadhaar Mandate (Section 142): This is non-negotiable. It is now mandatory to seed Aadhaar for any employee to avail benefits (PF/ESI) or make contributions. If an employee's Aadhaar isn't linked, you simply cannot file your monthly returns.

• Limitation on Inquiries: Good news for employers! The Code puts a 5-year cap on PF inquiries. The EPFO cannot dig up cases from 10 or 15 years ago unless they have proof of fraud.

• Reduced Appeal Deposit: Need to appeal a PF order? The pre-deposit required has dropped from 75% to 25% of the disputed amount. It’s now much cheaper to fight an unfair claim.

• Vacancy Notification: You must electronically report vacancies to Career Centers (Employment Exchanges) before filling them. You don't have to hire from there, but you do have to report.

3. Action Plan for Employers

Step 1: Audit Contracts for FTEs

Look at your current roster. Identify everyone on a Fixed Term Contract.

Action: Start accruing Gratuity liability for them right now. Make sure their contracts explicitly mention pro-rata Gratuity eligibility to avoid future litigation.

Step 2: Data Clean-up (KYC)

Run an internal drive to ensure 100% Aadhaar seeding for all employees.

Risk: If an employee refuses to give their Aadhaar, the system will reject their contribution and guess who gets held liable for non-payment? You do.

Step 3: Update Maternity Policy

The Code finally catches up with modern families. It explicitly codifies benefits for "Commissioning Mothers" (Surrogacy) and "Adopting Mothers" (adoption of child <3 months).

Action: Update your HR Manual to grant 12 weeks of maternity leave to these specific categories.

4. Compliance Checklist

• [ ] Aggregator Contribution: If you are a platform business, budget that 1-2% of turnover for the Social Security Cess.

• [ ] Common Returns: Get ready to file a single Unified Annual Return for PF, ESI and other welfare funds.

• [ ] Gratuity Payment: Ensure Gratuity is paid within 30 days of exit to avoid interest penalties.

Conclusion: A Safety Net for the Modern Workforce

The Code on Social Security is a game-changer because it finally acknowledges the reality of the modern economy. By covering gig workers and fixed-term employees, it closes the massive gaps left by the old laws. For employers, the cost of compliance will rise—especially with the new Gratuity rules—but the benefit is a more stable, secure and legally protected workforce.

As you update your welfare policies, remember that social security is just one piece of the puzzle. To understand how the new laws impact your ability to manage workforce size and union relations, you need to dive into the next article.

Next Up: The Industrial Relations (IR) Code, 2020: Balancing Flexibility with Discipline

By: MIT HR Professional

The Code on Wages, 2019: The Complete Implementation Guide for HR Professionals

Let’s be honest: out of all four codes, the Code on Wages, 2019 is the one that’s going to impact your balance sheet the most. It doesn’t matter if you’re a scrappy startup or a manufacturing giant, this code changes how you structure salaries, pay bonuses, and settle dues for everyone.

Here is what you need to know to keep your payroll compliant and your employees happy.

1. The "Big Ticket" Changes

A. The "50% Rule" (Section 2y)

Let’s talk about the elephant in the room. This is the biggest compliance hurdle you’ll face.

• The Old Way: We all did it, keeping Basic Pay low (maybe 30-40% of CTC) and loading the rest into "Special Allowances" to keep PF liability manageable.

• The New Rule: Those days are over. "Excluded Allowances" (HRA, Conveyance, Special Allowance, etc.) can no longer exceed 50% of the Total Remuneration.

• The Impact: If your allowances cross that 50% line, the excess amount gets added back to "Wages" for calculating PF and Gratuity. Yes, this means your employer cost goes up, and your employees might see a dip in their take-home pay (thanks to the higher PF deduction).

B. Universal Minimum Wage

• The Old Way: Minimum wage rules usually applied only to "Scheduled Employments."

• The New Rule: The Central Government now sets a "Floor Wage." No State Government can go below this. It ensures a baseline income for every single worker in India, regardless of sector.

C. Full & Final Settlement (F&F)

• The Old Way: We usually took our time—30 to 45 days was standard practice.

• The New Rule: This is a strict one. In case of resignation, dismissal, or removal, wages must be paid within 2 working days.

• Action Item: You need to overhaul your exit process immediately. You can't let IT asset recovery or Admin clearances hold up the payout beyond 48 hours.

2. The "Fine Print" (Small Changes, Big Impact)

• Overtime Rate: Overtime is now twice the normal rate. And here’s the kicker: you calculate OT on the new definition of "Wages" (Basic + DA + Retaining Allowance), not just Basic Pay.

• Limitation Period: There’s a new uniform limitation period of 3 Years. This means an ex-employee can come back and sue for unpaid bonus or overtime up to three years after the incident. Keep your records safe!

• Gender Neutrality: The Code goes beyond just "Men vs. Women." It prohibits discrimination in recruitment and pay for "same work or work of similar nature" for all genders, including transgender individuals.

• Inspector-cum-Facilitator: The scary "Inspector" is now a "Facilitator." Inspections will be web-based and randomized. Their first job is to advise you on compliance, not just slap you with a fine on the first offence.

3. Action Plan for Employers

Step 1: The Salary Structure Audit

Pull up your payroll data right now.

Check: Is (Basic + DA + Retaining Allowance) >= 50% of CTC? If No: It’s time to restructure. You’ll need to increase Basic Pay and reduce those Special Allowances. The hard part? Communicating to employees why their in-hand salary might look a little different.

Step 2: Gratuity Provisioning

Since Gratuity is calculated on "Wages" (Basic + DA), and your Basic Pay is likely going up to meet the 50% rule, your Gratuity liability is going to spike.

Action: Give your Finance team a heads-up. They need to increase Gratuity provisions in the balance sheet for this Financial Year.

Step 3: Update Compliance Registers

Say goodbye to maintaining separate registers (Form I, Form II, etc.) for different acts. Move to the Unified Register mandated by the Code. Also, double-check that your wage slips explicitly show the calculation of "Wages" vs "Excluded Allowances."

4. Compliance Checklist

• [ ] Employment Contracts: Update your offer letters to reference "Code on Wages, 2019".

• [ ] F&F Policy: Change your standard operating procedure to hit that 2-day settlement target.

• [ ] Bonus Calculation: Ensure your annual bonus (8.33% to 20%) is calculated correctly based on the higher of Minimum Wage or actual Wage.

• [ ] Record Retention: Don't delete anything! Maintain all payroll records for 3 years to cover the new limitation period.

• [ ] Missing State Rules Strategy: If your State hasn't notified specific rules yet, stick to the Central Rules for the substantive stuff (definitions, timelines) since the Code itself is the primary law.

Conclusion: Moving Beyond the Paycheck

The Code on Wages marks a huge shift from "Cost Optimization" to "Social Security." Yes, the immediate administrative burden of restructuring salaries is a pain, but the long-term result is a stronger retirement net for your people and a transparent playing field for everyone. The era of arbitrary salary structures is over; the era of compliance has begun.

This is just the first pillar. To get your organization fully ready for the 2025 reset, you need to understand the other three codes too.

Read the Full Series:

• Part 2: The Code on Social Security, 2020: Gig Workers, Gratuity & Universal PF

• Part 3: The Industrial Relations (IR) Code, 2020: Balancing Flexibility with Discipline

• Part 4: The OSH Code, 2020: One License, Contract Labour & Women’s Rights

By: MIT HR Professional

The Long Road to Reform: The Historic Journey of India’s Labour Codes (2002–2025)

For over 70 years, India's labour landscape was governed by a complex web of 29 Central laws and over 100 State laws. Many of these, like the Workmen's Compensation Act (1923) or the Factories Act (1948), were drafted for a different era.

On November 21, 2025, this era officially ended. But this change didn't happen overnight. It was a 23-year legislative marathon. Here is the step-by-step history of how India’s labour laws were consolidated into four unified Codes.

Phase 1: The Genesis (2002)

The seed for reform was planted not in 2019, but in 2002.

• The Event: The 2nd National Commission on Labour, submitted a landmark report to the Government of India.

• The Recommendation: They argued that existing labour laws were archaic, contradictory, and difficult to enforce. They suggested consolidating these laws into broader "groups" (Wages, Safety, Welfare, Relations) to improve the Ease of Doing Business while ensuring worker safety.

• The Outcome: For nearly 15 years, this report remained in the discussion phase, with various governments attempting piecemeal reforms but failing to pass a comprehensive bill.

Phase 2: The Legislative Action (2019 – 2020)

The real legislative momentum began in 2019 when the Ministry of Labour & Employment decided to push for total codification.

Step 1: The First Pillar (August 2019)

• Bill Introduced: The Code on Wages Bill, 2019 was introduced in Lok Sabha.

• Passing: It passed in Lok Sabha on July 30, 2019, and Rajya Sabha on August 2, 2019.

• Presidential Assent: On August 8, 2019, the President of India gave his assent.

• Result: The first Code became Law, repealing 4 historic Acts (Minimum Wages Act, Payment of Wages Act, Bonus Act, Equal Remuneration Act).

Step 2: The Remaining Three (September 2020)

In the midst of the global pandemic, the Government expedited the remaining reforms to boost industrial growth.

• Bills Introduced: Three bills (Social Security, Industrial Relations, and OSH) were introduced in Lok Sabha on September 19, 2020.

• Parliamentary Approval: In a historic session, both houses passed the bills by September 23, 2020.

• Presidential Assent: On September 28, 2020, the President signed them into law.

• Result: The legislative framework was now complete. 29 Acts were legally subsumed into 4 Codes.

Phase 3: The Implementation Struggle (2021 – 2024)

If the laws were passed in 2020, why did enforcement wait until 2025?

The "Concurrent List" Challenge

In the Indian Constitution, "Labour" is on the Concurrent List. This means:

• The Central Government makes the Code (The Act).

• State Governments must frame the Rules (The implementation procedures).

For reforms to work, both Centre and States needed to be aligned. Between 2021 and 2024, the Centre waited for major industrial states (Maharashtra, Gujarat, Tamil Nadu, Karnataka) to publish their draft rules to ensure a uniform business environment.

Phase 4: The Final Enforcement (November 2025)

After years of drafts and stakeholder consultations, the final trigger was pulled.

• Notification: The Ministry of Labour & Employment issued the official Gazette Notification announcing the "Appointed Date."

• Enforcement Date: November 21, 2025.

On this day, the transition was absolute. The old "Inspector Raj" mechanism was legally replaced by a "Facilitator-based" digital compliance system.

Summary: The 4 New Pillars

The 29 Laws have been reorganized into these four functional pillars.

The New Code	Focus Area	Key Laws Repealed
1. Code on Wages, 2019	Salary, Bonus, Deductions	Minimum Wages Act, Payment of Wages Act
2. Social Security Code, 2020	PF, ESI, Gratuity, Maternity	EPF Act, ESI Act, Payment of Gratuity Act
3. IR Code, 2020	Unions, Disputes, Layoffs	Industrial Disputes Act, Trade Unions Act
4. OSH Code, 2020	Safety, Licenses, Working Hours	Factories Act, Contract Labour Act

Read on for our detailed deep-dives into each of these codes to understand exactly what has changed for your organization.

Summarized by MIT - HR Professional

How to Build a Corporate-Style HR Manual for Cooperative Societies

For decades, Cooperative Societies, whether District Dairy Unions, Cooperative Banks or Sugar Factories, have operated on a governance model that closely mirrors government departments.

The current HR scenario in most cooperatives is characterized by "Order-Based" Management. Instead of established policies, decisions are often made via ad-hoc "Office Orders" or Board Resolutions. Promotions are dictated by seniority, and the "Permanent" employee mindset often stifles productivity.

But the market has changed. You are no longer just competing with other societies; you are competing with private banks, multinational dairy giants, and fintech startups. To survive, you need the agility of a corporate entity while respecting the democratic roots of the cooperative.

The Strategy: A "Three-Tier" Architecture

The biggest mistake HR managers make is trying to put everything into one document. To build a corporate-style manual that is legally compliant, you must split your documentation into three tiers:

1. Tier One: The Statutory Core (The "Constitution")

This is the document that goes to the RCS for approval. It must remain broad and static.

• Focus: Definitions, Appointing Authority, Retirement Age, and Disciplinary Procedures (Natural Justice).

• The Strategy: Use "Enabling Clauses" here. Instead of listing specific benefits, state that "Benefits shall be as per the Operational Policy approved by the Board."

2. Tier Two: The Corporate Layer (The "Playbook")

This is where the modernization happens. These policies are approved by your Board of Directors and do not always need RCS validation.

• Focus: Performance Management Systems (KPIs vs. CRs), Code of Conduct, Digital Usage, and Conflict of Interest.

• The Benefit: You can update these annually to match market trends without bureaucratic delays.

3. Tier Three: The Delegation of Power (DOP)

This defines who signs what, protecting the HR department from day-to-day political interference.

📢 Check back for my upcoming deep-dive articles detailing these specific sections:

• "The Statutory Core: Drafting the Legal Backbone without the Red Tape."

• "The Corporate Layer: Integrating Modern Policies into Traditional Structures."

Modernizing the Clauses: From "Sarkari" to Strategic

To shift the culture, you must rewrite the language of your policies.

1. The "Conflict of Interest" Clause Nepotism is a high risk in cooperatives where Board members are also users. A corporate-style manual must include a "Material Disclosure" policy. Employees must declare if any vendor or contractor dealing with the Society is a relative. Failure to disclose should be classified as a "Breach of Trust."

2. Performance Improvement Plans (PIP) It is difficult to terminate permanent staff in cooperatives. To solve this, formalize the PIP Protocol in your manual. Define that two consecutive "Below Average" ratings trigger a mandatory 90-day improvement plan. This creates the necessary legal paper trail for tribunals.

3. Recruitment & Promotion Move from "Seniority-based" to a "Merit-Cum-Seniority" model. Draft your manual to give 70% weightage to KPI scores and 30% to tenure.

Implementation: How to Get It Approved

Drafting the manual is easy; getting it accepted is hard.

• The "Grandfathering" Technique: Clearly state that new, stricter performance rules apply primarily to new hires, while existing staff have a transition period. This reduces internal pushback.

• Legal Vetting: Always have a labor advocate vet Tier 1 to ensure it doesn't violate the State Cooperative Societies Act.

• Board Buy-in: Present the manual not as a "rulebook" but as a "time-saver" for the Board. Show them how the DOP Matrix reduces their administrative burden.

Conclusion

Building a Corporate-Style HR Manual for a cooperative is not about abandoning your roots; it's about professionalizing your execution. By separating your statutory obligations from your operational strategy, you gain the flexibility to lead your cooperative like a modern enterprise.

As mentioned, I will be publishing detailed breakdowns of The Statutory Core and The Corporate Layer soon to help you draft these specific sections line-by-line.

By Mit HR Professional & Cooperative Sector Strategist

You may like to see : Recruitment and Selection in Cooperative Organizations: A Unique Challenge

HR Weekly Updates – Third Week – November 2025

Welcome back to the third edition of HR Weekly Updates.

The week of 15th–21st November 2025 will be remembered as a watershed moment for Indian HR. With the historic implementation of the Four Labour Codes, the landscape of compliance, benefits, and gig work has fundamentally changed overnight.

Here are the key updates you need to know.

1. Historic Shift: India Implements Four Labour Codes

On 21st November 2025, the Ministry of Labour & Employment officially implemented the Four Labour Codes, replacing 29 existing labour laws. This massive consolidation aims to simplify compliance while expanding social security.

Key Points:

• Consolidation: The Code on Wages, Industrial Relations Code, Social Security Code, and OSH Code are now in effect.
• Universal Appointment Letters: It is now mandatory to issue formal appointment letters to all employees, promoting workforce formalization.
• Unified Compliance: Multiple registrations and returns have been replaced with a single licensing and return mechanism.
• HR takeaway: Immediate review of all employment contracts and standing orders is necessary to align with the new codes.

Source: Ministry of Labour & Employment Notification / The Economic Times

HR Action Plan:

• Wage Structure Audit: Review current salary breakups. Ensure "Basic Pay" constitutes at least 50% of the CTC (Cost to Company) to comply with the new definition of wages.
• Contract Updates: Revise all employment contract templates to include the statutory clauses required by the OSH Code.
• Policy Harmonization: Merge separate policies for Leave, Gratuity, and Maternity into a single "Statutory Benefits Policy" manual as per the new codes.

2. Gig Economy: First-Ever Formal Social Security Net

For the first time in India’s history, gig and platform workers (e.g., delivery partners, ride-hailing drivers) are legally recognized and covered under social security.

Key Points:

• Legal Definition: "Gig worker" and "Platform worker" are now legally defined terms.
• Aggregator Contribution: Platform aggregators must contribute 1–2% of their annual turnover (capped at 5% of amount paid to workers) towards a social security fund.
• Benefits: This fund will support health, maternity, and disability benefits for gig workers.
• HR takeaway: Organizations utilizing gig talent must budget for this new statutory liability and update vendor contracts immediately.

Source: Business Standard – Gig workers get formal safety net

HR Action Plan:

• Vendor Review: Identify all third-party vendors (logistics, delivery, temporary staffing) who fall under the "Aggregator" definition.
• Cost Impact Analysis: If your company operates a platform model, calculate the financial impact of the 1-2% turnover levy immediately.
• Contract Addendums: issue contract addendums to gig partners clarifying their eligibility for these new social security benefits.

3. Corporate Watch: Pune Labour Commissioner Summons TCS

In a major development regarding workforce rights, the Pune Labour Commissioner’s office summoned Tata Consultancy Services (TCS) on 18th November 2025.

Key Points:

• The Issue: The summons followed complaints filed by the Nascent Information Technology Employees Senate (NITES) alleging "unlawful terminations" and layoffs without due process.
• NITES Action: The union claimed it assisted employees in filing formal complaints regarding abrupt terminations and denial of statutory dues.
• HR takeaway: Even in a performance-driven culture, documentation and due process in separations are non-negotiable to avoid legal and reputational risks.

Source: Live Mint / Times of India – Pune Labour Commissioner summons TCS.

4. Policy Update: Gratuity Eligibility Reduced to 1 Year for Fixed-Term Employees

Under the newly implemented Industrial Relations Code, the rules for Fixed-Term Employment (FTE) have been significantly relaxed to encourage direct hiring over contract labour.

Key Points:

• Gratuity Change: Fixed-term employees are now eligible for gratuity if they render service for 1 year, reducing the previous 5-year threshold.
• Parity: FTEs are entitled to the same hours of work, wages, allowances, and statutory benefits as permanent workers doing the same work.
• HR takeaway: This makes FTE a more attractive model for project-based hiring but increases the long-term cost of short-term hires.

Source: The Economic Times – Fixed-term employees to get gratuity after 1 year.

HR Action Plan:

• Budget Re-forecasting: Add a 4.81% (Gratuity component) provision to the budget for all Fixed-Term Contracts exceeding 12 months.
• Offer Letter Revision: Update FTE offer letters to explicitly mention Gratuity eligibility after one year of continuous service.
• Identify Risks: Review current FTEs approaching the 1-year mark; ensure their tenure extensions are based on business need, not just to avoid gratuity liability (which creates legal risk).

5. Compliance Corner: EPFO 'Amnesty' & Section 14B Amendment

To support the Employees' Enrolment Scheme 2025 (valid from Nov 1, 2025, to April 30, 2026), the government has amended Section 14B and 14AC of the EPF Act via notification.

Key Clarifications:

• Damages Capped: Employers who voluntarily declare previously unenrolled employees (joining between July 2017 and Oct 2025) will face a maximum penalty (damages) of only ₹100.
• Employee Share Waiver: The employee’s share of contribution is waived for the past period if it was not deducted from wages earlier.
• Action Required: Employers must use this window to regularize any "missed" employees to avoid heavy penalties later.
• HR takeaway: This is a golden opportunity to clean up past compliance gaps with minimal financial impact.

Source: EPFO Notification S.O. 4920(E) & 4921(E) dated 19/11/2025.

HR Action Plan:

• Gap Analysis: Run a VLOOKUP between your "Total Headcount Register" and "PF Monthly Challan Data" for the last 7 years to find missing names.
• Contractor Audit: Ask your manpower contractors to submit a "Nil Declaration" or "Correction Report" under this scheme to protect principal employer liability.
• File Immediately: Initiate the declaration process on the unified portal before the year-end rush begins.

The Week in One Line

This week marked the end of an era and the start of a new one: with the Labour Codes live, HR is no longer just managing people, but managing a fully formalized, legally compliant, and social-security-backed workforce ecosystem.

What is your immediate priority with the new Labour Codes? Share your thoughts in the comments!

By Mit HR Professional

Major Reforms Unleashed: Govt Notifies All 4 Labour Codes in India, Promising Social Security for Gig Workers & Gender Pay Parity

In a historic move reshaping India's employment landscape, the Government on Friday (November 21, 2025) officially notified all four Labour Codes. This notification ushers in major reforms, including extending universal social security coverage to gig workers, ensuring gender pay parity, expanding safety rights for women, providing statutory backing for minimum wages, and formally introducing fixed-term employment.

This decision consolidates 29 previously existing labour laws, some dating back to the 1930s into four simplified, modern codes designed to balance worker welfare with ease of doing business.

PM Modi: "A Strong Foundation for Viksit Bharat"

Following the notification, Prime Minister Narendra Modi took to social media to emphasize the government's commitment to the workforce.

Prime Minister Narendra Modi posted on X on Friday 21-11-2025:

"The new Labour Codes will lay a strong foundation for social security, minimum and timely wages, safe workplaces, and better opportunities for people, especially women and youth.

These changes will protect workers' rights and further strengthen India's economic growth. These reforms will increase employment, improve productivity, and accelerate our progress towards a Viksit Bharat (Developed India)."

The 5 Pillars of the New Notification

Friday's notification highlights five transformative shifts in the Indian job market:

• Universal Social Security: For the first time, the social security net is expanded to include gig and platform workers (like delivery partners and freelancers), ensuring they are no longer left vulnerable.
• Gender Pay Parity & Safety: The codes strictly mandate equal pay for equal work irrespective of gender and expand women's rights to work in all shifts (including night shifts) with mandatory safety protocols.
• Statutory Minimum Wage: A statutory floor wage has been introduced, ensuring that no worker in any sector falls below the poverty line due to underpayment.
• Fixed Term Employment: This creates a new category where contract workers receive the same benefits as permanent employees (including gratuity and leaves) for the duration of their work.
• Modernization: Replacing laws from the 1950s to fit the digital, remote, and dynamic work culture of 2025.

Detailed Impact: 10 Key Benefits for Employees

1. Faster Gratuity for Fixed-Term Staff: Fixed-term employees will now be eligible for Gratuity after just 1 year of service, replacing the old 5-year rule.
2. Timely Wage Payments: Strict timelines are set for wage settlements; delays are now legally punishable.
3. Double Wages for Overtime: Any work beyond the capped 48 hours/week will legally command double the wages.
4. Universal Appointment Letters: To formalize the economy, employers must issue formal Appointment Letters to every worker, increasing transparency.
5. Aggregator Contribution: Aggregators (e.g., ride-sharing apps) must contribute 1-2% of turnover to a welfare fund for gig workers.
6. Free Health Checkups: Mandatory free annual health checkups for workers in hazardous industries above a certain age/tenure.
7. Expanded ESI Coverage: The Employees' State Insurance (ESI) net now covers hazardous sectors and MSMEs previously excluded.
8. Media & Digital Coverage: Journalists and digital media personnel get formal protection regarding working hours and pay.
9. Migrant Worker Portability: Welfare benefits for migrant workers are now portable across state lines.
10. Workplace Safety Committees: Large establishments are mandated to form safety committees to monitor working conditions continuously.

Crucial Analysis: How Your Salary Will Change

The notification brings immediate changes to salary structures (CTC) due to the new definition of "Wages."

1. The "50% Rule"

Your Basic Salary must now be at least 50% of your total Cost to Company (CTC).

• Current Scenario: Companies often kept Basic Pay low (30-40%) to reduce PF liability.
• New Rule: Companies must increase Basic Pay and reduce Allowances (like HRA/Special Allowance) to comply.

2. Impact on Take-Home vs. Savings

• Lower In-Hand Salary: Since Provident Fund (PF) is 12% of Basic Pay, a higher Basic Pay means a higher PF deduction, reducing your monthly cash-in-hand.
• Higher Retirement Corpus: Conversely, your PF savings and Gratuity entitlement will increase significantly, securing your financial future.

Example: Salary Structure Change (For ₹50,000 CTC)

Component	Old Structure  (Basic @ 30%)	New Structure  (Basic @ 50%)	Result
Basic Salary	₹15,000	₹25,000	Increases
Allowances	₹35,000	₹25,000	Decreases
PF Deduction (12%)	- ₹1,800	- ₹3,000	Deduction Increases
Net Salary (In-Hand)	Higher	Lower	Less Cash Now
Retirement Corpus	Lower	Higher	More Savings Later

The notification of these four Labour Codes on November 21, 2025, marks the end of a decades-long wait for reform. While trade unions have expressed concerns over "employer-flexibility," the government maintains that these codes are the key to unlocking India's industrial potential while ensuring that every worker from the factory floor to the gig platform is legally protected.

Curated by Mit