India is rolling out one of its biggest labour law overhauls in decades. The four new Labour Codes covering wages, industrial relations, social security, and occupational safety & health came into effect in 2025, consolidating 29 old labour laws into a simpler, more unified framework.

For both employees and employers, this means clearer rules, better protections, and more predictable compliance. One of the standout features is the mandatory free annual health check-up for workers above 40, a major step toward preventive healthcare.

Major Changes Under the New Labour Codes

The 2025 reforms focus on making labour laws easier to follow and more worker-friendly. Key areas include:

• Wages: Standardised definitions and structures for salary, including basic pay and allowances.
• Working hours and leave: Flexible yet regulated hours, limits on overtime, and improved leave policies.
• Social security: Wider coverage of provident fund, insurance, and gratuity, including for gig and fixed-term workers.
• Health and safety: Mandatory medical check-ups, safety committees, and stronger occupational health standards.

The overall goal is a safer, fairer, and more productive workplace.

How Working Hours and Leave Rules Will Affect Employees

Employees will notice changes in how work hours and leave are handled:

• Some sectors may now adopt a 4-day workweek while staying within weekly hour limits.
• Overtime rules are clarified and capped for safety reasons.
• Leave accrual, carry-forward rules, and approvals are simplified.

These changes are meant to reduce confusion and ensure fair treatment across industries.

Free Annual Health Check-Ups for Employees Above 40

One of the most employee-friendly reforms is the mandatory medical check-up:

• Who’s eligible: All employees aged over 40, including permanent, contract, and workers in hazardous industries.
• Who pays: Employers cover the entire cost.
• Frequency: Once a year, during working hours so employees don’t lose pay.
• Process: Employers partner with clinics or doctors, schedule check-ups, and share reports with HR. Employees need to provide age proof.
• Why it matters: Detects health issues early, improves safety, reduces absenteeism, and encourages preventive care.

This reform ensures that older employees and those in risky jobs are monitored regularly for health, giving workers peace of mind and employers a healthier workforce.

Social Security and Medical Benefits – Expanded Coverage

The new codes extend social security benefits to a broader group:

• EPF (Provident Fund): Now more workers are covered from day one.
• ESI (Employee State Insurance): Health and accident coverage applies to more sectors.
• Gratuity: Expanded to fixed-term and gig workers.
• Maternity benefits: Enhanced protections for women in semi-organized and organized sectors.

This shift ensures that even workers in non-traditional roles receive essential protections.

Compliance Updates for Employers

Employers need to prepare for:

• Digital records and simplified reporting for wages, hours, and social security contributions.
• Workplace safety audits and health monitoring systems.
• Annual health check-ups for eligible employees.
• Industrial relations compliance: dispute resolution is streamlined, but strict.
• Contractor and gig worker benefits: Social security and medical protections must be applied uniformly.

Businesses that plan ahead will avoid penalties and maintain a positive work culture.

Tips for Employees to Make the Most of the New Reforms

• Verify your age with HR to ensure inclusion in health check-ups.
• Ask for a copy of your medical report for personal health tracking.
• Stay informed about salary and leave structure changes.
• If the company delays benefits, remind HR politely the law is on your side.
• Track year-on-year health results and address issues early.

Why These Reforms Are Significant

The 2025 Labour Codes mark a major modernization of India’s workforce laws. Key benefits:

1. Better worker protection: Health, safety, and social security.
2. Simplified compliance: Clear rules and digital reporting reduce confusion.
3. Predictable business environment: Employers can plan staffing, wages, and benefits efficiently.

For India’s economy, this is a step toward a more structured, fair, and productive workforce.

FAQs

1. When do the new Labour Codes apply?
They are effective from 2025, with most provisions already in force.

2. Who is eligible for the free annual health check-up?
All employees above 40, including permanent, contract, and hazardous-industry workers.

3. Who bears the cost of the check-up?
The employer fully covers the cost.

4. Will these check-ups happen outside working hours?
No, they are conducted during working hours to avoid loss of pay.

5. Are gig and contract workers included in social security and health benefits?
Yes, the reforms expand coverage to these groups as well.