Global benefits insights: December 2025

India

Introduces new labour codes^{2, 3}

Effective from 21st November 2025, the Government of India has made amendments to four labour codes; The Code on Wages 2020, The Industrial Relations Code 2020, The Code on Social Security 2020 and The Occupational Safety, Health and Working Conditions 2020. 

The major changes to streamline labour laws include:

• Wages will primarily include Basic Pay, Dearness Allowance and Retaining Allowance. The new rule states that these wages should be minimum 50% of the total remuneration of the employee.
• All Fixed Term Employees will be eligible for gratuity after 1 year of service. Permanent employees will be eligible after 5 years of service.
• Fixed Term employees will be eligible to all benefits equal to those offered to permanent workers including leave and social security.
• Under Code of Social Security 2020, all workers including gig and platform workers to get social security coverage, PF, ESIC, insurance and other benefits.
• Under the Code of Wages, all workers to receive a statutory right of minimum wage payment.
• Female workers are entitled to equal pay and will now be permitted to work night shifts as well as parents in law being added to their family definition.
• Medical check-ups are now mandatory and free for all employees aged 40 and above. Employers must provide these annual health check-ups.