Changes under new labour laws in India, Four-day work week, salary and PF rules change for employees

New labour laws may go into effect nationwide on July 1 and may have an influence on your take-home pay, weekly vacation time, and daily work hours. These four codes have been adopted by the Center. The states must now put them into effect. These laws include social security, salaries, workplace safety, and labour relations.

On September 29, 2020, the Center announced four labour codes: the Code on Wages, Industrial Relations Code, Social Security Code, and the Code on Occupational Safety, Health, and Working Conditions. These 29 labour regulations, which have not changed since Independence, are expected to be replaced.

To implement these laws in their separate jurisdictions, states must notify rules under the four codes. The draught guidelines for the Code on Wages have only been issued by 23 states and Union Territories.

When all states agree to the codes, they will be put into effect.

Four-day work week:

The proposed new labour laws provide businesses the option of having four working days each week rather than five or six.

Four days at work do not, however, equal less effort. If the number of working days is decreased, there will be more hours worked. Employees will be required to complete the 48-hour work week. This indicates that they must put in 12 hours every day of labour rather than the usual eight.

There is no reduction in paid holidays due to the fewer working days. Four-day workers would receive three paid holidays each week.


The number of working days needed to qualify for leaves has been lowered from 240 to 180 under the new labour laws.

In accordance with current legislation, a new employee must work 240 days before being qualified to take a leave. The new labour regulations, however, have lowered the need for a new employee to work 180 days before being eligible for leave.

For each 20 days of employment, one day of leave is earned, but the amount of leave earned does not vary. The maximum number of leaves that may be carried over will remain at 30.

PF, Salaries:

There will be a modification to the pay scale for all workers. A larger portion of the basic pay will be paid. The provident fund will be enhanced because it is based on the basic pay. This implies that although employee provident funds will grow, take-home pay will decline.

The definition of “Worker”:

Employees who are classified as workers will benefit from the new labour laws.

The new regulations’ definition of “workers” is identical to that found in the Factories Act. This does not imply, however, that factory-based blue-collar workers are the only ones eligible for the benefits.

The service industry is included in the scope of the new labour laws. According to The Economic Times, regardless of the task given to him or her or the compensation received (apart from supervisors), every individual contributor (person not engaged primarily in management, administrative, or supervisory roles) should qualify as a worker under the new labour rules.