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HomeNewsBusinessEconomyFrom unpaid interns to underpaid fresher: How India’s new labour codes redraw the deal for young workers

From unpaid interns to underpaid fresher: How India’s new labour codes redraw the deal for young workers

India’s labour codes effective Nov 21, 2025 guarantee minimum wage for all workers, mandatory appointment letters, and wage payment during leave. Explained.

November 24, 2025 / 11:05 IST
Young and first-time workers get a universal minimum wage right, mandatory appointment letters, and wage protection during leave under the new codes.

The Government of India has made four labour codes effective from November 21, 2025, replacing 29 central labour laws. The codes include the Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and the OSHWC Code, 2020.

For youth workers and first-job entrants, the PIB release lists the following provisions:

Minimum wage guaranteed for all workers.

The Code on Wages, 2019 establishes a statutory right to minimum wages for all workers, covering organised and unorganised sectors, unlike the earlier system limited to scheduled employments.

Mandatory appointment letters for every worker.

Employers must issue appointment letters to all workers. The PIB note states this is meant to create written proof of employment, including for formal employment history.

Wages during leave are mandatory.

The PIB note states that payment of wages during leave has been made mandatory, and links this to preventing exploitation.

National floor wage framework applies.

The PIB note says workers will receive wages as per the floor wage determined by the Central Government, intended to ensure a decent standard of living, and that states cannot set minimum wages below this floor.

Timely wage payment is compulsory.

The labour codes require employers to provide timely wages, as a universal compliance duty.

Concluding paragraph

Taken together, the labour codes effective November 21, 2025 create a baseline legal package for youth and first-time workers: a universal minimum wage entitlement anchored to a national floor wage, compulsory written appointment letters, mandatory wage payment during leave, and a requirement for timely wages. The PIB release confirms these rights in principle, while noting that detailed rules and schemes still need to be notified through further consultations, leaving the operational rollout and specific wage levels to be clarified in the next phase.

Aishwarya Dabhade
Aishwarya Dabhade Chief Sub-Editor at Moneycontrol. She leads shifts and writes explainers on business, policy, markets and geopolitics. Ex-CNBC-TV18, The Economic Times, YouGov and WebEngage.
first published: Nov 23, 2025 03:11 pm

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