Aatmanirbhar push: India rolls out historic labour codes for a future-ready workforce. Check details
India’s existing labour regulations were built on laws framed between the 1930s and 1950s, an era when work structures, technology, and economic realities were vastly different. Over time, these fragmented and complex laws created uncertainty for workers and heightened compliance burdens for industry.
- Nov 21, 2025,
- Updated Nov 21, 2025 4:22 PM IST
In a landmark labour reform, the Government of India on Friday notified the implementation of the four long-awaited Labour Codes — the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020). Effective from November 21, 2025, the move consolidates and rationalises 29 Central labour laws, many of which date back to the pre-Independence and early post-Independence era.
Calling the step “historic”, the Ministry of Labour and Employment said the new framework is designed to ensure better wages, enhanced safety, stronger social security and greater welfare for India’s workforce. It also aligns the country’s labour ecosystem with global standards while supporting a more resilient, modern and Aatmanirbhar Bharat–ready economy.
Modernising colonial-era labour framework
India’s existing labour regulations were built on laws framed between the 1930s and 1950s, an era when work structures, technology, and economic realities were vastly different. Over time, these fragmented and complex laws created uncertainty for workers and heightened compliance burdens for industry.
The four Labour Codes aim to correct this by creating a unified, transparent and future-ready system. Their implementation is expected to empower workers — including women, youth, gig workers and migrants — while enabling industries to grow with reduced regulatory friction.
Before vs After: Key transformations
- Formalisation: Appointment letters, previously not mandatory, will now be compulsory for all workers — boosting transparency, job security and formal employment records.
- Social security: Coverage extends to all workers, including gig and platform workers. Benefits like PF, ESIC, insurance and pensions will become universally accessible.
- Minimum wages: Minimum wages, earlier limited to scheduled industries, will now apply to all workers nationwide under a statutory right to fair pay.
- Health & Safety: Employers must provide free annual health check-ups for workers above 40. Workplace safety standards will be harmonised through a national OSH Board.
- Timely wages: Employers are now legally mandated to ensure timely wage disbursement.
- Women’s participation: Women are permitted to work night shifts and across all occupations — including mining, heavy machinery and hazardous roles — with mandatory safety measures and explicit consent.
- Compliance ease: Multiple registrations and filings will be replaced with a single licence, registration and return, significantly reducing compliance burden for employers.
Sector-Wise Enhancements
The Codes introduce sweeping protections across industries:
- Fixed-term employees: Entitled to benefits equal to permanent staff; gratuity eligibility after one year.
- Gig & platform workers: Defined legally for the first time; aggregators to contribute 1–2% of turnover for social security.
- Contract workers: Guaranteed social security, health benefits and annual health check-ups.
- Women workers: Gender discrimination outlawed; equal pay mandated. Mandatory representation in grievance committees.
- Youth workers: Mandatory appointment letters, minimum wage protections and paid leave.
- MSMEs: All workers covered under social security; standardised hours, overtime norms and basic facilities ensured.
- Beedi, Plantation, Textile, IT/ITES, Mining, Dock, Export & Hazardous industries: Standardised wages, working hours, protective gear, medical facilities, grievance redress systems, and expanded safety provisions.
- Audio-visual & digital media: Mandatory appointment letters, social security entitlements and timely wage mandates.
Expanded social security & National floor wage
A national floor wage will ensure no worker earns below a basic standard of living. The OSHWC Code and Social Security Code bring plantations, hazardous industries, transport, digital media and more into comprehensive coverage.
Gender-neutrality is embedded across provisions — explicitly prohibiting discrimination against women and transgender persons.
Smoother dispute resolution
The new Inspector-cum-Facilitator model focuses on guidance and compliance rather than punitive action. Faster dispute resolution will be enabled through two-member industrial tribunals, which workers can directly approach after conciliation.
Major leap in social protection journey
India’s social-security coverage has expanded from 19% of the workforce in 2015 to over 64% in 2025, according to the Ministry. The Labour Codes are expected to widen this coverage further, embedding portability of benefits for migrant, gig, platform and unorganised workers.
The government said broad stakeholder consultations will continue as rules and schemes are finalised. Existing laws will remain in force during the transition. The Codes mark a decisive shift toward a pro-worker, pro-women, and pro-industry ecosystem — supporting job creation, skilling and a future-ready workforce.
In a landmark labour reform, the Government of India on Friday notified the implementation of the four long-awaited Labour Codes — the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020). Effective from November 21, 2025, the move consolidates and rationalises 29 Central labour laws, many of which date back to the pre-Independence and early post-Independence era.
Calling the step “historic”, the Ministry of Labour and Employment said the new framework is designed to ensure better wages, enhanced safety, stronger social security and greater welfare for India’s workforce. It also aligns the country’s labour ecosystem with global standards while supporting a more resilient, modern and Aatmanirbhar Bharat–ready economy.
Modernising colonial-era labour framework
India’s existing labour regulations were built on laws framed between the 1930s and 1950s, an era when work structures, technology, and economic realities were vastly different. Over time, these fragmented and complex laws created uncertainty for workers and heightened compliance burdens for industry.
The four Labour Codes aim to correct this by creating a unified, transparent and future-ready system. Their implementation is expected to empower workers — including women, youth, gig workers and migrants — while enabling industries to grow with reduced regulatory friction.
Before vs After: Key transformations
- Formalisation: Appointment letters, previously not mandatory, will now be compulsory for all workers — boosting transparency, job security and formal employment records.
- Social security: Coverage extends to all workers, including gig and platform workers. Benefits like PF, ESIC, insurance and pensions will become universally accessible.
- Minimum wages: Minimum wages, earlier limited to scheduled industries, will now apply to all workers nationwide under a statutory right to fair pay.
- Health & Safety: Employers must provide free annual health check-ups for workers above 40. Workplace safety standards will be harmonised through a national OSH Board.
- Timely wages: Employers are now legally mandated to ensure timely wage disbursement.
- Women’s participation: Women are permitted to work night shifts and across all occupations — including mining, heavy machinery and hazardous roles — with mandatory safety measures and explicit consent.
- Compliance ease: Multiple registrations and filings will be replaced with a single licence, registration and return, significantly reducing compliance burden for employers.
Sector-Wise Enhancements
The Codes introduce sweeping protections across industries:
- Fixed-term employees: Entitled to benefits equal to permanent staff; gratuity eligibility after one year.
- Gig & platform workers: Defined legally for the first time; aggregators to contribute 1–2% of turnover for social security.
- Contract workers: Guaranteed social security, health benefits and annual health check-ups.
- Women workers: Gender discrimination outlawed; equal pay mandated. Mandatory representation in grievance committees.
- Youth workers: Mandatory appointment letters, minimum wage protections and paid leave.
- MSMEs: All workers covered under social security; standardised hours, overtime norms and basic facilities ensured.
- Beedi, Plantation, Textile, IT/ITES, Mining, Dock, Export & Hazardous industries: Standardised wages, working hours, protective gear, medical facilities, grievance redress systems, and expanded safety provisions.
- Audio-visual & digital media: Mandatory appointment letters, social security entitlements and timely wage mandates.
Expanded social security & National floor wage
A national floor wage will ensure no worker earns below a basic standard of living. The OSHWC Code and Social Security Code bring plantations, hazardous industries, transport, digital media and more into comprehensive coverage.
Gender-neutrality is embedded across provisions — explicitly prohibiting discrimination against women and transgender persons.
Smoother dispute resolution
The new Inspector-cum-Facilitator model focuses on guidance and compliance rather than punitive action. Faster dispute resolution will be enabled through two-member industrial tribunals, which workers can directly approach after conciliation.
Major leap in social protection journey
India’s social-security coverage has expanded from 19% of the workforce in 2015 to over 64% in 2025, according to the Ministry. The Labour Codes are expected to widen this coverage further, embedding portability of benefits for migrant, gig, platform and unorganised workers.
The government said broad stakeholder consultations will continue as rules and schemes are finalised. Existing laws will remain in force during the transition. The Codes mark a decisive shift toward a pro-worker, pro-women, and pro-industry ecosystem — supporting job creation, skilling and a future-ready workforce.