New labour codes explained:
10 types of employees who will benefit immensely from revised rules
Nov 24, 2025
Synopsis
Social security benefits: These reforms offer enhanced rights and benefits to employees across sectors. Fixed-term, gig, and contract workers gain improved social security and welfare. Women workers achieve greater equality and opportunity. IT, media, youth, MSME, hazardous industry, and export sector workers also see significant improvements in wages, safety, and benefits.
Four new labour codes, which consolidated 29 existing labour laws, came into effect from November 21, 2025. These include the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020.
The new labour codes will benefit employees of many sectors and will provide them many with rights such as gratuity, the timely payment of wages, free health services, fixed working hours, etc. In this write-up, we will discuss in detail how these labour codes will benefit employees across different sectors.
1. What are the benefits for fixed-term employees (FTE) under new labour codes?
Full-time employees (FTEs) will receive all benefits equal to permanent workers, including leave, medical coverage, and social security. FTEs are eligible to get gratuity after one year of service instead of five. FTEs will also receive wages equal to permanent staff, enhancing both their income and job protection.
2. What are the benefits for gig and platform workers under new labour codes?
‘Gig work’, ‘platform work’, and ‘aggregators’ have been defined for the first time. Aggregators are required to contribute 1–2% of their annual turnover, capped at 5% of the amount paid or payable to gig and platform workers. An Aadhaar-linked Universal Account Number will make welfare benefits easier to access, fully portable, and available across states, regardless of worker migration.
3. What are the benefits for contract workers under new labour codes?
Contract workers will get a free annual health check-up facility.
Fixed-term employees (FTE) will increase employability and ensure social security, legal protection like benefits equal to permanent employees.
Fixed-term employees will become eligible for gratuity after one year of continuous service.
The principal employer should provide health and social security benefits to contract workers.
4. What are the benefits for women workers under new labour codes?
Gender discrimination is now legally prohibited, ensuring equal pay for equal work.
Women can work night shifts and take up all types of work, including underground mining and operating heavy machinery subject to their consent and required safety measures.
Women’s representation in grievance-redressal committees is mandatory.
The definition of ‘family’ for female employees has been expanded to include parents-in-law, increasing dependent coverage and promoting inclusivity.
5. What are the benefits for IT & ITES workers under new labour codes?
Salaries must be released mandatorily by the 7th of every month.
Equal pay for equal work is now mandatory, and women’s participation in the workforce is being strengthened.
Women are allowed to work night shifts in all establishments, providing them opportunities to earn higher wages.
Harassment, discrimination, and wage-related disputes will be resolved promptly.
Social security benefits have been guaranteed through fixed-term employment and the provision of mandatory appointment letters.
6. What are the benefits for audio-visual and digital media workers under new labour codes?
Digital and audio-visual workers, including journalists in electronic media, dubbing artists, and stunt persons will now receive full benefits.
Mandatory appointment letter for all workers - clearly stating their designation, wages, and social security entitlements. The timely payment of wages has been ensured.
Overtime work beyond prescribed hours will now be consent based and the employer must pay at least double the normal wage rate, the government said.
7. What are the benefits for youth workers under new labour codes?
The government has mandated a minimum wage for all workers.
Every worker will receive an appointment letter, promoting social security, maintaining employment history, and ensuring formal employment.
Exploitation of workers by employers is strictly prohibited now, and the payment of wages during leave is also mandatory now. To ensure a decent standard of living, workers will be paid according to the floor wage set by the central government.
8. What are the benefits for MSME workers under new labour codes?
All workers in micro, small, and medium enterprises (MSMEs) will be covered under the Social Security Code, 2020, with eligibility based on the organisation’s employee count. Every worker is guaranteed a minimum wage and access to essential facilities such as canteens, drinking water, and rest areas.
The regulations also provide for standard working hours, double wages for overtime, and paid leave, while ensuring the timely payment of wages.
9. What are the benefits for hazardous industry workers under new labour codes?
All workers will receive free annual health check-ups. The central government will set national standards to improve worker safety.
Women will be allowed to work in all establishments including underground mining, heavy machinery operations, and hazardous roles ensuring equal job opportunities.
Each worksite must also have a mandatory safety committee to monitor on-site safety, and ensure the safe handling of hazardous chemicals.
10. What are the benefits of export sector workers under new labour codes?
Fixed-term workers in the export sector will now be entitled to gratuity, provident fund (PF), and other social security benefits.
Workers can avail annual leave after completing 180 days of work in a year.
Every worker has the right to timely wage payments, with no unauthorised deductions and no wage ceiling restrictions.
Women are also permitted to work night shifts with their consent, creating opportunities to earn higher income.
[The Economic Times]
