25th November 2025
India’s new Labour Codes strengthen worker protection, simplify compliance, and modernise labour governance nationwide.
The New Labour Code framework marks one of the most significant transformations in India’s labour governance since Independence. “Labour” is a subject in the Concurrent List of the Constitution of India, and therefore both the Central and State Governments are empowered to make rules. As part of the implementation process for the four Labour Codes, the Central Government has pre-published the draft rules. Thirty-two States and Union Territories have already pre-published their draft rules, while West Bengal and Lakshadweep have not pre-published draft rules under any of the Codes. Delhi has published draft rules only under the Code on Wages, 2019, and Tamil Nadu has not pre-published draft rules under the Code on Social Security, 2020.
The four Labour Codes—the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020—seek to consolidate and modernise 29 existing labour laws. Together they aim to strengthen protections for all categories of workers, including those in the unorganised sector, migrant labourers, gig workers and platform workers. The Codes ensure statutory minimum wages, timely wage payments, universalised social security, occupational safety, improved healthcare, and modernised compliance systems.
Under the Code on Social Security, 2020, the scope of social protection has been greatly widened. All types of workers—including unorganised, gig, and platform workers—along with their families—are now eligible for social-security benefits. Gig workers and platform workers have been formally defined, enabling specific welfare schemes to be formulated for them. A Social Security Fund will be set up to support these schemes and extend welfare measures to workers outside traditional employment spaces. At present, the Government has no proposal to amend these Labour Codes.
With effect from 21 November 2025, the Government of India has brought all four Labour Codes into force. This decision marks a historic restructuring of India’s labour law architecture. Modernising regulations that were originally framed between the 1930s and 1950s, the Codes align India’s labour ecosystem with global standards and the realities of contemporary employment. They reduce complexity, enhance worker protection, and support a future-ready, resilient and productive workforce, contributing to the vision of Aatmanirbhar Bharat.
The transformation brought about by the Labour Codes can be seen by comparing the pre-reform and post-reform situations. Earlier, there was no mandate for appointment letters, whereas now all workers must receive appointment letters, ensuring transparency, job security and formalisation. Previously, social-security coverage was limited, while now all workers—including gig and platform workers—are guaranteed PF, ESIC, insurance and other protections. Minimum wages earlier applied only to scheduled industries, but now minimum wages apply to all workers, enhancing financial stability. Preventive healthcare is strengthened: workers aged 40 or above are entitled to free annual health check-ups. Timely payment of wages is now mandatory, ensuring stability and reducing stress. Women, previously restricted from night shifts or certain occupations, can now work in all types of establishments, including night shifts, subject to consent and safety measures. ESIC coverage has been expanded pan-India and now applies even to hazardous establishments with a single worker. Compliance burdens are significantly reduced through single registration, single licence and single return systems.
Across sectors, the Codes introduce several notable improvements. Fixed-Term Employees now receive benefits identical to permanent staff, including eligibility for gratuity after one year. Gig and platform workers, for the first time, receive formal recognition, with aggregators required to contribute 1–2% of their annual turnover to social-security funds, capped at 5% of the amount paid to such workers. Their welfare entitlements will be accessible through an Aadhaar-linked universal portable account. Contract workers gain stronger protections, including health benefits, social-security coverage and free annual health check-ups.
The Codes greatly strengthen protections for women workers, prohibiting gender discrimination and ensuring equal pay for equal work. Women may work in all occupations, including underground mining and hazardous roles, subject to consent and safety provisions. Mandatory female representation in grievance-redressal committees is required, and the definition of “family” for female employees can include parents-in-law, enhancing dependents’ coverage.
For youth workers, the Codes guarantee minimum wages, appointment letters and protection against wage-related exploitation. The floor wage, fixed by the Central Government, ensures a minimum living standard across the country. MSME workers will benefit from social-security coverage, guaranteed minimum wages, standard working hours, double overtime pay and improved welfare facilities such as canteens and rest areas.
Specific sectors receive targeted benefits. Beedi and cigar workers gain minimum wages, capped working hours, consent-based overtime with double wages, timely wage payments and bonus eligibility after 30 days of work. Plantation workers now fall under the OSHWC and Social Security Codes, ensuring safety training, protective equipment, ESIC benefits for them and their families, and guaranteed education facilities for their children. Audio-visual and digital media workers, including journalists, dubbing artists and stunt professionals, get mandatory appointment letters, timely wage payments and consent-based overtime with double wages.
Mine workers receive enhanced safety protections, including recognition of certain commuting accidents as employment-related, free annual medical check-ups, national standards for workplace safety, and regulated working hours (8–12 hours per day, 48 hours per week). Hazardous industry workers will benefit from universal health check-ups, national safety standards, the right of women to work in all roles, and mandatory on-site safety committees. Textile workers, especially migrant workers, are guaranteed equal wages, welfare benefits, PDS portability and double overtime wages, along with a three-year window to raise wage-related claims. IT and ITES workers will receive salary by the 7th of every month, equal pay provisions, strengthened women’s employment in night shifts, and better grievance-resolution systems.
For dock workers, the Codes provide formal recognition, mandatory appointment letters, PF, pension, insurance, annual health check-ups, and access to essential workplace facilities. Export-sector workers benefit from gratuity, PF, timely wages without arbitrary deductions, annual leave after 180 days, and safety measures for women working night shifts.
Beyond these sector-specific reforms, the Codes introduce large-scale systemic improvements. A National Floor Wage ensures that no worker receives sub-standard wages. The framework enforces gender-neutral opportunities, explicitly prohibiting discrimination, including against transgender persons. An Inspector-cum-Facilitator model moves the system from punitive enforcement to guidance-based compliance. Dispute resolution is made faster and more predictable with two-member industrial tribunals and the ability to approach them directly after conciliation. A National OSH Board will harmonise safety standards, and safety committees in establishments with 500 or more workers will improve workplace accountability. Higher factory applicability thresholds reduce unnecessary regulatory burden on smaller units while retaining protections for workers.
As the transition takes place, the Government will consult widely while framing the rules and schemes under the Codes. Existing Acts, rules and notifications will remain in force until the transition is complete. Over the past decade, India’s social-security coverage has risen from 19% of the workforce in 2015 to more than 64% in 2025, a milestone recognised globally. The Labour Codes further deepen this progress by expanding coverage, ensuring portability of benefits and placing workers—particularly women, youth, gig, unorganised and migrant workers—at the centre of labour governance.
The Government emphasises that these reforms are both pro-worker and pro-industry, designed to increase employment, encourage skilling, reduce compliance burden and promote economic growth. Prime Minister Narendra Modi welcomed the implementation of the Codes, calling them one of the most comprehensive and progressive labour-oriented reforms since Independence, noting that they empower workers, simplify compliance, promote ease of doing business, and provide a strong foundation for universal social security. The reforms, he affirmed, will accelerate India’s journey toward a Viksit Bharat, strengthen economic growth, enhance productivity and boost job creation—underlining the central message: Shramev Jayate.
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