List of key changes that will come into effect under the new labor laws from July 1


New Labor Laws Latest Updates: The central government plans to implement a series of new labor laws from July 1, 2022. The new rules, once implemented, will bring massive changes to all industries and sectors in India. As part of the new labor laws, regulations relating to employee working hours, provident funds and salary structures will undergo drastic changes.Read also – Government jobs: Recruitment for 90,000 positions | All the details here

While reports indicate that the Center is ready to implement these rules from next month, however, no official notification has yet been issued. The reforms will cover areas such as wages, social security (retirement, gratuity), social protection, health, safety and working conditions (including that of women). Read also – Provident fund alert: subscribers will receive an interest rate of 8.1% for 2021-22 | Here’s how to check the PF balance

According to reports, 23 states have developed state labor codes and rules based on the new Wages Code, 2019, and the Industrial Relations Code, 2020, the Social Security Code, 2020, and the of Safety, Health and Working Conditions at Work, 2020, all of which were passed by Parliament. Read also – EPFO: know the advantages, process of carrying out the electronic appointment process for the PF account here

Significantly, Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and the UT of Jammu and Kashmir are the states that have set rules under new labor laws.

List of the main changes to come into force under the new labor laws:

Business hours

One of the main changes brought about by the new rules relates to the working hours of employees in all sectors. At present, hours of work are governed by the National Factories Act of 1948 for workers in factories and other similar workplaces, and by the Shops and Establishments Acts of each state for office workers and other employees. However, under the new rules, daily and weekly working hours have been capped at 12 and 48 hours. This will allow companies to introduce 4-day working weeks, while overtime hours have been reduced from 50 hours to 125 hours in one quarter across all sectors.

Salary structure

Under the new labor law, an employee’s basic salary will have to be at least 50% of gross salary. As a result, employees will contribute more to their EPF accounts and gratuity deductions will also increase, reducing take-home pay for most employees.


The central government is considering streamlining leave schemes under new labor laws. While the quantum of time off in a year will remain the same, employees will now earn time off for every 20 days worked instead of 45. Additionally, new employees will be able to earn time off after 180 days of employment instead of 240 working days. work.

Provident fund contributions

Another big change that will come under the new labor law is the relationship between take-home pay and employee and employer contribution to the provident fund. In accordance with the provisions of the new codes, the employee’s base salary shall be 50% of the employees’ gross salary. Both employee and employer FP contributions will increase, net pay will decrease for some employees, especially those working in private companies.


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