New Labour Law – The work-life balance game in India is getting a major upgrade. Starting 2025, a new labour law has come into effect that lets employees work just four days a week—without cutting their salary. In fact, some workers might even earn more under the new setup. This is a bold step by the government to promote healthier lifestyles, better productivity, and more personal time for employees across the country.
If you’re wondering how this will affect your job, income, and daily routine, here’s a simple breakdown.
What’s This New 4-Day Work Week All About?
Instead of the usual five or six days of work, full-time employees will now be expected to work just four days a week. The total number of working hours will be reduced to between 32 and 36 per week, down from the standard 40 or more. And here’s the best part—you’ll still get your full salary. This new approach is set to apply across most public and private sectors.
It’s not just a random experiment either. Several industries have already tested this model and reported positive results in terms of performance, job satisfaction, and employee well-being.
Why This Change Is a Big Deal for Employees
A shorter work week comes with plenty of perks:
- You’ll have more free time to spend with your family or to focus on hobbies.
- With fewer working days, people tend to be more focused and productive.
- It can help reduce burnout, especially in high-pressure jobs.
- Employees generally feel happier and more valued when they get more time for themselves.
- You’ll also save on commuting costs and time since you’ll be traveling less each week.
So, Will Salaries Change?
This is the first question most people have. And the answer is good news—most salaries will stay the same. In fact, depending on your industry and role, you might actually see an increase thanks to new performance-based bonus models. Here’s a quick look at what some sectors might experience:
- Tech and IT workers: Same salary, with high bonus potential based on results.
- Government employees: No change in pay, moderate bonuses depending on department.
- Manufacturing staff: Likely to see a small raise, as shifts are optimized.
- Customer service teams: Pay remains steady, but performance bonuses are now common.
- Healthcare workers: Depending on shifts, some could earn more.
- Finance professionals: Some might see a slight dip, but bonuses will help balance things out.
- Freelancers: With rising demand, earnings may increase depending on output.
Who Qualifies for the 4-Day Week?
The law is designed to cover a broad range of workers, but it doesn’t include everyone right away. Here’s how eligibility looks:
Included:
- Full-time government and private sector employees
- Workers in IT, services, manufacturing, and finance
- Mid-sized and large organizations
- Contract workers, depending on the agreement
Not Included (for now):
- Workers in essential services like hospitals and emergency units
- Daily wage earners (a separate regulation is under discussion)
- Some small businesses and startups that require five-day operations
How Will Companies Make It Work?
The law gives businesses flexibility in how they roll this out. As long as total weekly hours don’t go above 36, companies can build their schedules in different ways. Some of the models being used include:
- Compressed week: Four days with longer shifts (8 to 9 hours).
- Split week: Two days in the office, two days remote.
- Rotating schedules: Different teams work on alternate days.
- Performance-based: Focusing on tasks completed rather than hours worked.
For example, IT companies might focus on deliverables, while schools could have longer class hours over fewer days. Manufacturing plants may rotate teams to ensure production continues without gaps.
What This Means for Society and the Economy
Early reports and pilot programs have shown strong results:
- Productivity has improved by 15 to 25 percent in some cases.
- Employees are less likely to leave their jobs.
- Companies are saving money on utilities and office space.
- People have more time for health, learning, and community activities.
- Spending on leisure and local businesses is on the rise, boosting the economy.
Any Downsides?
Not everyone is on board just yet. Some small businesses worry they might lose productivity. Industries that run 24/7, like healthcare or logistics, may struggle to adjust. And if not monitored properly, some companies might overwork employees during their “off” days to make up for lost time.
To address this, the government plans to offer support, including funding for tech upgrades, training programs, and expert guidance to help companies transition smoothly.
This new 4-day work week policy could be a game-changer for how we think about work. It offers a real opportunity for employees to earn the same or more while gaining extra personal time. While it may take some getting used to and won’t suit every job type, it’s a major step toward a more modern, people-friendly work culture in India.
