India Notifies New Labour Codes Capping Weekly Work Hours at 48

Overview of New Labour Reforms

India's central government has notified the final rules for the Code on Wages, 2019 and the Code on Social Security, 2020. These reforms are part of a broader effort to consolidate 29 existing central labour laws into four comprehensive codes. The move is intended to standardize wage-related regulations and expand formal social protection for workers across the country.

Under the new framework, weekly working hours have been capped at 48 hours. Daily working hours are capped between 8 and 12 hours. The rules also establish a requirement for employers to pay double the hourly wage for any overtime work performed beyond the prescribed hours.

Wage and Payroll Regulations

According to Gupta, the new Wage Code rules provide a "clearer structure to core areas," which include the fixing of minimum wages and the establishment of processes for payroll-related aspects, such as deductions. The reforms ensure that minimum wages are guaranteed for all workers.

To ensure compliance and transparency, employers are now required to maintain and preserve records for five years. These mandatory records must include documentation regarding wages, overtime, and attendance. The new codes also alter the methods used to calculate salary, provident fund (PF), and gratuity.

Worker Protections and Reskilling

As part of the new regulatory shift, the government is introducing a National Reskilling Fund. This fund is designed to support retrenched workers by providing them with new skills to improve their employability. The financing for this fund will be provided by employers.

While the government aims to expand social protection, the reforms have faced criticism from some sectors. Some critics describe the sweeping changes as an attack on worker rights intended to intensify the exploitation of the working class by domestic and foreign capital.

Implementation Timeline

The new labour law framework is scheduled to become effective on November 21, 2025. This timeline provides payroll and compliance teams a window to adjust how wages are defined and processed to meet the new legal requirements.