India's new labor laws might make 4-day work week possible
What's the story
The Ministry of Labor and Employment has clarified that the new labor codes could allow a four-day work week in India. The updated regulations, which were introduced on November 21, 2025, permit a flexible schedule of 12 hours for four days. This means employees could potentially get three paid holidays in a week while still adhering to the total weekly working hours limit of 48.
Code changes
A step toward modern workplace rights
The new labor codes replace 29 old laws with four key 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 aimed at modernizing workplace rights and benefits for all workers in India. The Ministry of Labor also clarified that overtime beyond daily limits would be compensated at double the wage rate.
Employee benefits
Ensuring equal benefits for fixed-term employees
The new labor codes also ensure that fixed-term employees get the same benefits as permanent staff in terms of leave, medical cover, and social security. They are now eligible for gratuity after just one year of continuous service instead of five. The reforms also recognize gig work, platform work, and aggregators for the first time in India.
Welfare contributions
Aggregators to contribute to worker welfare funds
As per the new labor codes, aggregators are now required to contribute 1-2% of their annual revenue toward worker welfare funds, up to a maximum of 5% of total payouts. This is part of a larger effort to improve working conditions and provide better benefits for all types of employees in India. The reforms are expected to make welfare benefits more accessible and portable across states through an Aadhaar-linked Universal Account Number.