The trend of outsourcing is increasing rapidly in India. Companies in government and private sector are completing their work through outsourcing. In this process, employees are hired through an agency or contractor. However, such employees often face problems such as low salary and insecurity of jobs.
In 2025, the Government of India announced a new policy for outsourced employees, with an increase of 15% to 30% in their salary and the minimum wage is fixed at ₹ 18,000 per month. This step will not only help improve their standard of living, but will also provide them economic security.
30% increase in salary of outsourced employees: What is this policy?
The government has implemented new policies in 2025 to ensure increments for outsourced and contract employees and to ensure social security benefits. Under this policy:
- Minimum Wage: ₹ 18,000 per month.
- Salary hike: 15% to 30%, which will be based on experience and performance.
- Timely payment: It will be mandatory to pay salary by 7th of every month.
- Social Security Benefits: Facilities like EPF, Gratuity, and Medical Insurance.
Abbreviation of policy (overview table)
| Description | Acquaintance |
| Name of the scheme | Outsourced employee empowerment scheme |
| Date of implementation | 1 January, 2025 |
| Minimum pay | ₹ 18,000 per month |
| Salary increment | 15% to 30% |
| Social security benefits | PF, Gratuity, Medical Insurance |
| Maximum working hours | 48 hours per week |
| Deadlie | 3 years |
Why was a new rule necessary for outsourced employees?
Current status
Outsourced employees face many problems:
- Low salary: Minimum salary is also not received many times.
- Job instability: The risk of losing the job when the contract period is over.
- Lack of social security: Lack of EPF and medical facilities.
- Lack of skill development opportunities: unavailability of training programs.
Government’s purpose
The following are the main objectives of this policy:
- Providing financial security.
- Stop exploitation and ensure equal pay.
- To improve the standard of living of employees.
What are the benefits of this change?
There will be many benefits from the new policy:
- Economic stability: Employees will get economic relief from ₹ 18,000 minimum wage.
- Social Security: Facilities like EPF and Medical Insurance will be available.
- Employees satisfaction: Employees will perform better by getting high salary.
- Benefits of the country’s economy: Increasing income will also increase expenditure, which will strengthen the economy.
Impact of increment
The table below gives details of possible salary increase at various experience levels:
| Experience (in years) | Current salary (₹) | Estimated increase (%) | New salary (₹) |
| 0-2 | ₹ 12,000 | 30% | ₹ 15,600 |
| 3-5 | ₹ 15,000 | 25% | ₹ 18,750 |
| 6+ | ₹ 18,000 | 20% | ₹ 21,600 |
What challenges can occur?
Although this step is positive, there may be some challenges with it:
- Financial pressure on companies: Small companies may feel difficulty in carrying increased salary.
- Danger of job deduction: Some companies may reduce jobs to save cost.
- Fear of illegal practices: Some companies may ignore the rules.
Other steps taken by the government
The government has not only increased the salary but has also taken other steps:
- ESIC and PF (PF) Facility: All outsourced employees will get the benefit of these facilities.
- Security measures at the workplace: Health and safety measures will be strictly implemented at the workplace.
- Transparency in contract renewal process: Contract renewal process will be simplified.
Is ₹ 18,000 sure every month now?
The government has clarified that it will be mandatory to give a minimum of ₹ 18,000 per month to all outsourced employees. Other than this:
- A provision has been made for fines on companies to ensure timely payment.
- Employees serving for three years will be appointed to permanent posts.
conclusion
This new policy, which came into force in 2025, is going to bring a big change in the lives of millions of outsourced employees. This will not only strengthen their economic condition but will also provide them social security. Although there may be challenges in the implementation of this policy, the government has assured to take strict steps to deal with them.
Disclaimer
This article is based on government announcements and available information. The actual implementation will depend on companies and related departments. Readers are advised to confirm their company or concerned department.
