With New Labor Code 2025, 4-Day Week Can Become A Reality! – Trak.in

Latest updates are coming from the labour ministry as the government is gearing up for a revolutionary change in employment rules with the upcoming implementation of the Labour Code 2025. 

This has become one of the most talked-about reforms as it talks about the introduction of a 4-day workweek, alongside significant updates in salary structures, working hours, and employee benefits.

It holds a great significance as it would be  impacting millions of private and public sector workers across India.

Labour Code 2025 & Its Key Objectives 

When it comes to the Labour Code 2025, it is a consolidation of multiple existing labour laws into a simplified, unified framework. 

Further, this code aims to modernize India’s outdated employment laws, further introducing flexible yet fair regulations that benefit both employees and employers.

Moving ahead, this latest code will help in reducing the regulatory burden by combining 29 central labour laws into 4 labour codes.

It will also promote an ease of doing business for companies while offering greater flexibility in working hours and leave structures.

This would also providing an enhanced social security to employees as the companies may soon have the option to adopt a 4-day workweek model under the Labour Code 2025.

Under this initiative, employees can work 4 days a week, provided they complete 48 hours in that week.

It means that employees will have to work on a daily shift of 12 hours instead of the standard 8 hours.

Please note here that the companies are not mandated to switch to this model and it will remain optional.

Notably, the employees are still entitled to three days of rest in case they opt for this compressed schedule.

How Does This Help?

It is expected that the 4-Day workweek will help in improving the work-life balance while reducing the weekly commute and stress.

This will also create more time for personal development and family.

But it cannot be denied that it has challenges in maintaining productivity during extended workdays.

It can also result in potential rise in fatigue or burnout and customer service delays in certain industries.

There are also chances in changes in pay structure and take-home salary.

It is noteworthy that the new labour codes will also bring in significant modifications in how salaries are structured—particularly around the definition of “wages.”