New Labor Code 2025: Indian employees may soon be able to enjoy a four-day workweek. The new labor code allows for a 12-hour working day, resulting in a total of 48 hours of work per week. This will provide three paid holidays. Overtime work above the daily limit will result in double pay.
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New Labor Code 2025: The four-day workweek has been a long-standing debate in the Indian corporate world. Following the recent notification from the Ministry of Labor and Employment, the issue has once again sparked curiosity among employees. Many are expecting to work four days a week, but are wondering if they will receive a full week’s salary. However, to answer this question, the Labor Ministry has clarified the rules under the new labor code. Clarifying the new rules under the code, the ministry stated that they have the flexibility to offer flexible working hours.
The Labor Ministry, while denying the extension of the standard working hours to 12 hours per day, wrote in the post that the working hours will remain fixed at 48 hours per week, and overtime at double the wage rate will be paid for working beyond the prescribed daily hours. According to the ministry, “The Labor Codes allow for a 12-hour workweek for four working days, with the remaining three days being paid holidays. The total number of hours per week will remain at 48.”
The Labour Codes allow flexibility of 12 hours for 4 workdays only, with the remaining 3 days as paid holidays.
Weekly work hours remain fixed at 48 hours and overtime beyond daily hours must be paid at double the wage rate.#ShramevJayate pic.twitter.com/5udPMqRXbg— Ministry of Labour & Employment, GoI (@LabourMinistry) December 12, 2025
Higher pay for working more than 12 hours
If a company requires its employees to work more than 12 hours, or overtime, they will receive additional pay. According to the Ministry of Labor, overtime hours exceeding 12 hours should be paid at double the wage rate. Flexibility in working hours is being considered a beneficial measure for employees, many of whom want to take longer breaks of up to three days. Details of this plan will be notified in draft rules, which are expected to be released in the next few weeks.
WEF gave this example
Citing a trial, the forum said that in a 2019 pilot project, Microsoft Japan saw a 40% increase in productivity due to a four-day week, in which offices were closed on Fridays and meetings were halved. In the UK, approximately 92% of companies decided to continue with the four-day week plan, citing improved productivity and well-being.
However, according to experts, the four-day workweek won’t be suitable for all sectors. Some sectors will adopt it quickly, while others will retain the old system. This will depend on company policies, state regulations, and the type of work. Overall, the new codes aren’t reducing hours, but rather providing flexibility in how they are distributed. Companies and employees will decide together whether to use this option.
