HR India – Your Quick Guide to Labour Law, Salary Rules & Workplace Tips

Looking for clear answers about HR in India? You’ve come to the right spot. From pay cuts to leave policies, we break down the rules you need to know right now.

Know Your Rights at Work

Every employee in India is covered by the Industrial Disputes Act, the Factories Act and a handful of state labour codes. These laws set the minimum standards for working hours, overtime, holidays, and termination. If your boss tries to ask for extra shifts without pay, you can point to Section 9A of the Industrial Disputes Act – it says you must be paid for any overtime. Similarly, the Payment of Wages Act makes sure you get your salary on time, every month.

Women have extra protections under the Maternity Benefit Act. You’re entitled to at least 26 weeks of paid leave, plus a few days for prenatal check‑ups. If you’re a contract worker, the Contract Labour (Regulation and Abolition) Act gives you the right to a written agreement and a clear wage structure.

Salary, Pay Cuts & Benefits Explained

Worried about a salary cut? In 2025 the rules haven’t changed much – an employer can only reduce pay if the employment contract allows it or if there’s a mutual agreement. Anything else could be illegal and may lead to a claim for back wages. Check your offer letter; if it says “salary may be revised,” the employer has some wiggle room, but they still can’t go below the statutory minimum wage for your region.

Bonuses, commissions and other perks are usually at the employer’s discretion unless they’re written into your contract. If you receive a performance bonus every quarter, treat it as part of your salary for calculating overtime.

When it comes to benefits, the Employees' Provident Fund (EPF) and Employees' State Insurance (ESI) are mandatory for most full‑time workers. The EPF contribution is 12% of basic salary from both you and your employer, while ESI covers medical expenses for employees earning up to ₹21,000 per month.

If you’re an employer, make sure you follow the latest notification from the Ministry of Labour on the new digital payslip format. It helps avoid disputes and keeps your payroll transparent.

For both employees and employers, the best practice is to keep everything in writing – contracts, salary revisions, leave approvals. A simple email trail can become solid evidence if you ever need to go to a labour court.

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