India’s New Labor Laws Pave Way for Potential Four-Day Work Week

The Ministry of Labor and Employment in India has announced that the new labor codes could facilitate the implementation of a four-day work week. Introduced on November 21, 2025, these updated regulations allow for a flexible work schedule of up to 12 hours per day over four days. This adjustment means that employees may enjoy three paid holidays each week while still complying with the total weekly working hours limit of 48 hours.

The new labor codes replace 29 older laws with four comprehensive regulations: the Code on Wages 2019, Industrial Relations Code 2020, Social Security Code 2020, and Occupational Safety, Health and Working Conditions Code 2020. These reforms are designed to modernize workplace rights and benefits for all workers across India.

Key Features of the New Labor Codes

The Ministry has made it clear that any overtime worked beyond the daily limits will be compensated at double the standard wage rate. Additionally, fixed-term employees are now entitled to the same benefits as permanent staff, including leave, medical cover, and social security. Notably, these workers will become eligible for gratuity after just one year of continuous service, a significant reduction from the previous requirement of five years.

For the first time, the reforms also acknowledge gig work and platform-based employment. Under the new regulations, aggregators are mandated to contribute between 1% to 2% of their annual revenue toward worker welfare funds, with a cap at 5% of total payouts. This is part of a broader initiative aimed at enhancing working conditions and expanding benefits for all types of employees in India.

Impact on Worker Welfare

The reforms are expected to enhance the accessibility and portability of welfare benefits across states through an Aadhaar-linked Universal Account Number. This initiative aims to simplify the process for workers to access their benefits, regardless of their location within the country.

As these new labor codes take effect, they represent a significant shift in the landscape of labor rights in India. The potential for a four-day work week could not only improve the work-life balance for employees but also boost productivity and job satisfaction across various industries.

In summary, the introduction of these labor codes marks a critical advancement in worker rights in India, with the promise of better working conditions and benefits for millions of employees.