Minimum wage, health checkups, WFH and more — What India’s new labour rules mean for transport & logistics

India’s long-awaited overhaul of labour law — the four consolidated Labour Codes now in force — introduces at least a dozen worker-facing changes (minimum wages for all, appointment letters, overtime rules, health checks, social security extension to gig workers, formal recognition of work-from-home, etc.). While the government presents this as a modernisation to protect hundreds of millions of workers, the changes will have specific, practical consequences for the transport and logistics sector — a sector that moves roughly 70%–80% of India’s freight and employs a huge number of drivers, loaders, warehouse staff and platform/aggregator workers. Ministry of Labour & Employment+1

Below we explain the principal changes and how they are likely to affect trucking firms, fleet owners, third-party logistics (3PL) players, e-commerce couriers and the large informal workforce that keeps India’s supply chains moving.

1) Universal minimum wage and a national floor: higher base cost for labour

The Codes guarantee a minimum wage for all workers and create a national floor wage as a baseline. For road transport companies that rely on daily-wage helpers, contract loaders and owner-drivers, the direct effect is a rise in base labour cost — especially where local wages were previously below the new floor. This increases operating costs for small fleets and for transport contractors who compete on thin margins. Larger logistics companies may absorb some cost or pass it to shippers, worsening freight rate pressure in the short term. Ministry of Labour & Employment+1

2) Overtime, working hours and driver rostering

The Codes allow flexible timing up to 12 hours a day but cap weekly hours at 48, and require overtime pay at rates that can be double the normal wage for excess hours. For transport operations that schedule long point-to-point runs or depend on extended shifts to meet delivery windows, this means rethinking driver rosters, adding more drivers per vehicle, or paying significantly higher overtime. Expect logistics planners to invest in better route planning, more hubs and relay driver models to avoid chronic overtime payouts. The Indian Express+1

3) Appointment letters, formal contracts and documentation

All workers are to receive appointment letters and clearer wage statements. For the largely informal trucking ecosystem — owner-drivers, casual loaders, contract helpers — this will accelerate formalisation. Brokers, small transport owners and fleet operators will need to standardise contracts and maintain records, increasing compliance burden but improving labour rights and payment transparency. In the medium run, better documentation can help fleet owners access formal finance and insurance at lower rates. Ministry of Labour & Employment

4) Social security for gig and platform workers — aggregator cost & responsibilities

One of the most significant shifts is extending social security coverage to gig and platform workers. Last-mile couriers, app-based truckers and platform drivers who earlier were outside formal benefits may now be eligible for pension, health and other contributions. Aggregator platforms and logistics marketplaces will face added payroll or contribution costs and new administrative requirements. This could push prices up for customers, but also make trickier driver-retention economics easier (better benefits can cut churn). The Economic Times+1

5) Health check-ups, safety and welfare — benefits for drivers and warehouse staff

The Codes mandate health check-ups (free annual checks for workers above a certain age and strengthened workplace safety norms). For transport, this is a boon for driver health — early detection of fatigue-related disorders, high blood pressure and diabetes can reduce accidents and downtime. But employers will bear the immediate cost of organizing checks and improving workplace first-aid/sanitation at depots and hubs. Larger firms and organised 3PLs are better placed to implement these welfare measures quickly; small operators may need third-party occupational health partners. Business Standard+1

6) Women’s employment and night shifts

The Codes remove a blanket restriction on women working at night and in certain sectors, provided safety and facilities are ensured. For logistics hubs, warehouses and 24×7 operations, this opens the door to hiring more women for warehousing, sorting and even driving, but employers must invest in secure hostels, lighting, transport and safety systems. This is an opportunity to widen the labour pool but requires immediate investment. mint

7) Gratuity for fixed-term employees and formal benefits

Fixed-term employees (common in seasonal warehousing or peak e-commerce seasons) will have access to gratuity earlier. Season-hire costs will rise, and HR teams will likely prefer short fixed-term contracts with clear costs rather than ambiguous casual arrangements. This helps workers, but raises peak-season operating budgets for logistics firms. mint

8) Migrant worker database and portability

The Codes encourage better records and portability for migrant workers — a major issue for inter-state trucking crews and warehouse workers. In a positive outcome, portability will mean easier transfer of benefits and faster onboarding across states; on the flip side, companies must integrate with databases and standardise HR processes across locations. Ministry of Labour & Employment

9) Work-from-home recognition — limited direct effect, useful for back-office

Formal recognition of work-from-home benefits office staff in transport and logistics (customer service, ops, billing). This may reduce office real-estate costs for regional hubs and allow better scheduling of back-office staff, but has little direct impact on drivers, loaders and warehousing work which remain location-based. unwires.com

10) Compliance costs and tech adoption — acceleration of digitisation

To comply with appointment letters, wage statements, health checks, social security contributions and record-keeping, many transport players will adopt digital payroll, telematics and HR platforms. Small fleet owners may rely on aggregator platforms and 3PLs that can shoulder compliance, driving consolidation in the sector. Policymakers’ push for single-window registration and common licences should ease the transition if implemented well. GLI+1

11) Pricing, margins and short-term disruption

Higher labour costs, mandatory benefits and compliance will squeeze margins for small operators. Expect a short-term climb in freight rates, renegotiation of long-term contracts, and competitive pressure that could accelerate consolidation and formalisation (benefiting larger and tech-enabled logistics firms). Shippers may face higher transport bills, which could be passed on to consumers. mint+1

12) Long-term benefits — safety, retention and better workforce

If implemented in spirit, the Codes could reduce driver turnover (through better benefits), lower accident risk (through health checks and regulated hours) and professionalise the sector. That would improve reliability and reduce hidden costs — fewer delays, less equipment misuse and better operational planning — helping India’s logistics competitiveness over time. mint+1

What transport and logistics firms should do now

1. Run a quick wage-and-benefits impact analysis for your fleet and warehouses.

2. Digitise payroll and maintain appointment letters and wage slips.

3. Rework driver rosters and consider relay models to manage overtime.

4. Budget for health checks and basic welfare upgrades at depots.

5. Talk to aggregators/platforms about how social security costs will be shared.

Bottom line

India’s new labour rules mark a structural shift: for transport and logistics, they raise near-term costs and compliance work but promise longer-term gains in safety, worker retention and formalisation. The sector that moves India’s commerce may face a bumpy adjustment, but firms that invest early in workforce welfare, digitisation and smarter rostering will likely emerge more efficient and competitive.