Minimum Wage

The Union government has rolled out a major transformation of India’s labour laws, bringing 29 separate regulations under four comprehensive labour codes effective November 21. These include the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020). This overhaul aims to modernise the labour landscape, improve ease of doing business, and ensure stronger protection for workers. Whether you work full-time, part-time, on contract, or through digital platforms, these changes will influence your pay structure, job conditions, benefits, and rights. Here are the major updates employees should be aware of: Universal Minimum Wages: Every worker—across organised and unorganised sectors—will now be entitled to statutory minimum wages. A national “floor wage” will be set by the central government. Revised Wage Structure & Lower Take-Home: A uniform definition of “wages” requires that basic pay must form at least 50% of total salary. While this may reduce take-home income, it boosts long-term PF and gratuity benefits due to higher contributions. Social Security for Gig & Platform Workers: For the first time, gig workers are covered under social security. Aggregators must allocate a share of their annual turnover to a dedicated fund offering life, disability, and health benefits. Quicker Gratuity for Fixed-Term Employees: Fixed-term staff can now claim gratuity after just one year of service instead of five, offering improved financial protection. Mandatory Appointment Letters: All employers—including those in the unorganised sector—must issue formal appointment letters, ensuring documentation of employment terms, wages, and entitlements. Double Pay for Overtime: Any work done beyond standard hours must be compensated at no less than twice the regular wage rate. Enhanced Leave Benefits: The number of days required to qualify for annual leave has been reduced from 240 to 180, enabling newer employees to enjoy paid leave sooner. Women Allowed in Night Shifts: Women can now legally work night shifts in all sectors, provided they consent and employers ensure safety and security. Gender-based wage discrimination is strictly prohibited. Work-From-Home Option: WFH provisions are now officially recognised for service-based industries through mutual agreement. Free Annual Health Checkups: Employees aged 40 and above must be given free yearly health check-ups by their employers. Timely Wage Payments: Wages must be paid within fixed timelines—for example, within seven days of the following month for monthly wage earners, and within two working days after employment ends. Travel-Related Accidents Covered: Commuting accidents between home and workplace are now deemed work-related, making employees eligible for compensation. Source: NDTV