- India's new labour rules allow an optional four-day work week under the Code on Wages (Central) Rules
- The work week must not exceed 48 hours, allowing for 12-hour days over four days if agreed by workers
- Extra hours beyond 12 per day or 48 per week require double pay, ensuring fair compensation
New Labour Rules: India's new labour code rules under the Code on Wages (Central) Rules allow an optional four-day work week. The rules say a normal working day must be set so that total hours in a week do not exceed 48 hours. This creates scope for employers to offer three days off per week -- if certain conditions are met.
The four-day work week is not mandatory. It is an option that employers can choose to implement. It applies to companies that fall under the central labour code rules -- including those with offices in more than one state. The code came into effect on April 1, 2026.
Under the provision, the condensed work week typically means 12-hour workdays for four days. These hours include legally mandated breaks and rests. Workers must agree to the arrangement; employers cannot enforce it unilaterally. Any time worked beyond 12 hours a day or 48 hours a week must be paid at double the regular wage rate.
Experts believe the option could bring flexibility and productivity -- but implementation matters.
Raghunandan Saraf, Founder and CEO of Saraf Furniture, says this could motivate Indian firms to build more flexible labour structures suited to the global business environment. He notes that a shorter working week may boost productivity, efficiency and flexibility, especially in technology-based sectors. But he cautions that poor implementation could undermine these gains. "This is the moment for Indian companies to construct workplaces that are productive and caring of their employees," Saraf says.
For Yogish Arora, Ex-VP HR at ING Investment Management and CEO & Director at HR Anexi, the shift is about more than hours. He sees a move toward redefining workplace productivity, flexibility and accountability. Arora highlights risks to employee wellness and mental balance if longer days cause exhaustion. He also points out that double-time pay requires companies to adopt clearer, fairer policies. Arora urges HR teams to stop measuring staff by time alone and to promote performance-based cultures instead.
However, not all sectors may find the four-day week workable. Industries such as healthcare, hospitality, retail, transportation, and manufacturing may struggle with 12-hour shifts due to safety and worker health concerns.
Pallavee Dhaundiyal Panthry, Chief Communication Advisor at the World of Circular Economy (WOCE), adds a sustainability angle. She says initiatives like the four-day work week -- paired with flexible formats such as remote and hybrid work -- can ease traffic, reduce fuel use, and improve city air quality. She argues that when people work with less commuting strain and gain more personal time, productivity and sustainability can grow together.
Industries best suited to a four-day pattern include knowledge-based sectors like IT, ITES, GCCs, marketing, design, and other services where extended workdays are feasible without harming worker health.
