New Labour Codes Simplified: 10 Employee Categories That Stand to Gain Big

India’s new Labour Codes, effective from 21 November 2025, introduce major reforms in employee rights, wages, social security, working hours, and workplace protections. These reforms aim to standardise labour laws and provide stronger benefits across all categories of workers in India.

Below is a clear breakdown of how different employee groups will benefit under the new labour framework.

Fixed-Term Employees (FTEs)

Fixed-term employees will now receive equal benefits as permanent employees, including:

• Leave and medical benefits
• Social security coverage
• Equal wages for equal work

Key changes include:

• Eligibility for gratuity after 1 year of service (earlier 5 years)
• Stronger job security and income stability
• Formal employment parity with permanent staff

Gig and Platform Workers

For the first time, gig and platform workers are legally recognised under labour laws.

Key benefits include:

• Mandatory social security coverage
• Aggregator contribution of 1–2% of annual turnover to welfare fund
• Access to benefits via Aadhaar-linked Universal Account Number (UAN)
• Portability of benefits across states

This ensures long-term financial protection for digital and app-based workers.

Contract Workers

Contract workers will now receive:

• Free annual health check-ups
• Social security benefits
• Equal workplace protections similar to permanent staff (through principal employer responsibility)

This strengthens healthcare access and employment security for outsourced workers.

Women Workers

The Labour Codes significantly improve gender equality at the workplace:

• Prohibition of gender-based wage discrimination
• Permission to work night shifts with consent and safety measures
• Mandatory representation in grievance redressal committees
• Expanded definition of “family” for dependent benefits

These changes enhance both safety and career opportunities for women.

IT & ITES Employees

Key reforms for IT and IT-enabled services workers include:

• Salary payment by the 7th of every month
• Equal pay for equal work enforcement
• Permission for women to work night shifts with safeguards
• Mandatory appointment letters for formal employment
• Fast resolution of workplace disputes

Social security benefits are also ensured under fixed-term employment rules.

Audio-Visual & Digital Media Workers

Workers such as journalists, stunt performers, and dubbing artists will receive:

• Mandatory appointment letters
• Timely wage payments
• Overtime pay at double wages with consent
• Full social security benefits

MSME Workers

Employees in micro, small, and medium enterprises will now get:

• Minimum wage protection
• Social security coverage
• Paid leave and regulated working hours
• Workplace facilities like canteens and rest areas
• Overtime paid at double wages

Hazardous Industry Workers

Workers in high-risk sectors benefit from:

• Mandatory safety committees at workplaces
• Free annual health check-ups
• Equal job opportunities for women, including mining and machinery roles

Export Sector Workers

Export sector employees receive enhanced protection:

• Gratuity, PF, and social security benefits for fixed-term workers
• Annual leave eligibility after 180 days
• Timely salary payments without deductions
• Women allowed night shifts for higher earning opportunities

Conclusion

The Labour Codes 2025 represent a major shift toward standardised worker rights, stronger social security, and improved workplace safety. By extending benefits across fixed-term, gig, contract, and sector-specific workers, India is building a more inclusive and modern employment ecosystem.