Ministry of Labour & Employment
Government Makes the Four Labour Codes
effective to Simplify and Streamline Labour Laws
Four Labour Codes Herald Transformational Change: Better
Wages, Safety, Social Security & Enhanced Welfare for India’s
Workforce
Codes lay the foundation for a protected, future-ready
workforce and resilient industries, boosting employment and
driving labour reforms for Aatmanirbhar Bharat
Code aligns India’s labour ecosystem with global standards,
ensuring social justice for all workers
प्रविष्टि तिथि: 21 NOV 2025 3:00PM by PIB Delhi
In a historic decision, the Government of India has announced that 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 are being made effective from 21st November 2025, rationalising 29
existing labour laws. By modernising labour regulations, enhancing workers' welfare
and aligning the labour ecosystem with the evolving world of work, this landmark move
lays the foundation for a future-ready workforce and stronger, resilient industries
driving labour reforms for Aatmanirbhar Bharat.
Many of India’s labour laws were framed in the pre-Independence and early post-
Independence era (1930s–1950s), at a time when the economy and world of work were
fundamentally different. While most major economies have updated and consolidated
their labour regulations in recent decades, India continued to operate under
fragmented, complex and in several parts outdated provisions spread across 29 Central
labour laws. These restrictive frameworks struggled to keep pace with changing
economic realities and evolving forms of employment, creating uncertainty and
increasing compliance burden for both workers and industry. The implementation of
the four Labour Codes addresses this long-pending need to move beyond colonial-era
structures and align with modern global trends. Together, these Codes empower both
workers and enterprises, building a workforce that is protected, productive and aligned
with the evolving world of work — paving the way for a more resilient, competitive and
self-reliant nation.
A comparison of the labour ecosystem, before and after the implementation of the
Labour Codes, is as follows:
Pre Labour Reforms Post Labour Reforms
Formalisation No mandatory appointment Mandatory appointment letters to
of Employment letters all workers.
Written proof will ensure
transparency, job security, and fixed
employment.
Social Security Limited Social Security Under Code on Social Security, 2020
Coverage Coverage all workers including gig & platform
workers to get social security
coverage.
All workers will get PF, ESIC,
insurance, and other social security
benefits.
Minimum Minimum wages applied Under the Code on Wages, 2019, all
Wages only to scheduled workers to receive a statutory right
industries/employments; minimum wage payment.
large sections of workers
Minimum wages and timely payment
remained uncovered
will ensure financial security.
Preventive No legal requirement for Employers must provide all workers
Healthcare employers to provide free above the age of 40 years with a
annual health check-ups to free annual health check-up.
workers
Promote timely preventive
healthcare culture
Timely Wages No mandatory compliance Mandatory for employers to provide
for employers payment of timely wages,
wages
ensuring financial stability, reducing
work stress and boosting overall
morale of the workers.
Women Women’s employment in Women are permitted to work at
workforce night shifts and certain night and in all types of work
participation occupations was restricted across all establishments, subject to
their consent and required safety
measures.
Women will get equal opportunities
to earn higher incomes – in high
paying job roles.
ESIC coverage ESIC coverage was limited ESIC coverage and benefits are
to notified areas and extended Pan-India - voluntary for
specific industries; establishments with fewer than 10
establishments with fewer employees, and mandatory for
than 10 employees were establishments with even one
generally excluded, and employee engaged in hazardous
hazardous-process units did processes.
not have uniform
Social protection coverage will be
mandatory ESIC coverage
expanded to all workers.
across India
Compliance Multiple registrations, Single registration, PAN-India
Burden licenses and returns across single license and single return.
various labour laws.
Simplified processes and reduction
in Compliance Burden.
Benefits of Labour Reforms Across Key Sectors:
1. Fixed-Term Employees (FTE):
FTEs to receive all benefits equal to permanent workers, including leave, medical,
and social security.
Gratuity eligibility after just one year, instead of five.
Equal wages as permanent staff, increasing income and protection.
Promotes direct hiring and reduces excessive contractualisation.
2. Gig & Platform Workers:
‘Gig work’, ‘Platform work’, and ‘Aggregators’ have been defined for the first time.
Aggregators must contribute 1–2% of the annual turnover, capped at 5% of the amount
paid/payable to gig and platform workers.
Aadhaar-linked Universal Account Number will make welfare benefits easy to access,
fully portable, and available across states, regardless of migration.
3. Contract Workers:
Fixed-term employees (FTE) will increase employability and ensure social security,
legal protection like benefits equal to permanent employees.
Fixed-term employees will become eligible for gratuity after one year of continuous
service.
Principal employer will provide health benefits and social security benefits to
contract workers.
● Workers to get free annual health check-up.
4. Women Workers:
Gender discrimination legally prohibited.
Equal pay for equal work ensured.
Women are permitted to work night shifts and in all types of work (including
underground mining and heavy machinery), subject to their consent and mandatory
safety measures.
Mandatory women’s representation in grievance redressal committees
Provision to add parents-in-law in Family Definition of Female employees, expanding
dependent coverage and ensuring inclusivity.
5. Youth Workers:
Minimum wage is guaranteed for all workers.
All workers to get appointment letters, - promoting social security, employment history
and formal employment.
Worker exploitation by employers is prohibited—payment of wages during leave has
been made mandatory.
To ensure a decent standard of living, workers will receive wages as per the floor wage
determined by the Central Government.
6. MSME Workers:
All MSME workers covered under the Social Security Code, 2020, eligibility based on
employee count.
Minimum wage guaranteed for all workers.
Workers will have access to facilities such as canteens, drinking water, and rest
areas.
Provisions for standard working hours, double overtime wages, and paid leave.
Timely wage payment ensured.
7. Beedi & Cigar Workers:
Minimum wages guaranteed for all.
Working hours capped at 8 -12 hours per day, 48 hours per week has been capped.
Overtime Work beyond prescribed hours, to be consent based and pay at least double
the normal wage rate.
Timely payment of wages ensured.
Workers eligible for Bonus after completing 30 days of work in a year.
8. Plantation Workers:
Plantation workers are now brought under the OSHWC Code and the Social
Security Code.
Labour Codes apply to plantations with more than 10 workers or 5 or more hectares.
Mandatory safety training on handling, storing, and using chemicals.
Protective equipment mandatory to prevent accidents and chemical exposure.
Workers and their families to get full ESI medical facilities; Education facilities for
their children are also guaranteed.
9. Audio-Visual & Digital Media Workers:
Digital and audio-visual workers, including journalists in electronic media,
dubbing artists, and stunt persons will now receive full benefits.
Mandatory appointment letter for all workers - clearly stating their designation,
wages, and social security entitlements.
Timely payment of wages ensured.
Overtime Work beyond prescribed hours, to be consent based and pay at least
double the normal wage rate.
10. Mine Workers:
The Social Security Code treats certain commuting accidents as employment-
related, subject to conditions of time, and place of employment.
Central Government notified standards to standardize workplace occupational safety
and health conditions.
Health safety for all workers will be ensured. Free annual health check-up will be
provided.
Limit on working hours set to 8 to 12 hours per day, 48 hours per week to ensure
health and work-life balance.
11. Hazardous Industry Workers:
All workers will receive free annual health check-ups.
Central Government will frame national standards for better safety of workers.
Women can work in all establishments, including underground mining, heavy
machinery, and hazardous jobs, ensuring equal job opportunities for all.
Mandatory safety committee at each site for on-site safety monitoring, and safe handling
of hazardous chemicals ensured.
12. Textile Workers:
All Migrant Workers (direct, contractor-based and self-migrated) to get Equal wages,
welfare benefits and PDS portability benefits.
Workers can raise claims for upto 3 years for settlement of pending dues, facilitating
flexible and easy resolution.
Provision for double wages for workers for overtime work.
13. IT & ITES Workers:
Release of Salary mandatory by the 7th of every month. Transparency and trust
ensured.
Equal pay for equal work made mandatory, women’s participation is strengthened.
Facility for women to work night shifts in all establishments – women to get
opportunity to earn higher wages.
Timely resolution of harassment, discrimination, and wage related disputes.
Guarantee of social security benefits through fixed-term employment and
mandatory appointment letters.
14. Dock Workers:
All Dock workers to get formal recognition, Legal Protection.
Mandatory appointment letters to guarantee social security benefits.
Provident fund, pension, and insurance benefits ensured for all, whether contract or
temporary dock workers.
Employer-funded annual health check-ups mandatory.
Dock workers to get mandatory medical facilities, first aid, sanitary and washing
areas, etc., to ensure decent work conditions and safety.
15. Export Sector Workers:
Export sector fixed term workers to receive gratuity, provident fund (PF), and
other social security benefits.
Every worker to have the option of availing annual leaves after 180 days of work in a
year.
Every worker to get right to timely wage payment and no unauthorized wage
deductions and no wage ceiling restrictions.
● Women allowed to work in night shifts with consent, ensuring
opportunity to earn higher income.
● Safety and welfare measures include mandatory written consent,
double wages for overtime, safe transportation, CCTV surveillance, and
security arrangements.
Beyond the major welfare initiatives already highlighted, the Labour Codes introduce
several further reforms that strengthen worker protection and simplify compliance for
employers:
National Floor Wage to ensure no worker receives a wage below the minimum living
standard.
Gender-neutral pay and job opportunities, explicitly prohibiting discrimination—
including against transgender persons.
Inspector-cum-Facilitator system, shifting enforcement towards guidance, awareness
and compliance support rather than punitive action.
Faster and predictable dispute resolution, with two-member Industrial Tribunals and
the option to approach tribunals directly after conciliation.
Single registration, single licence and single return across safety and working-
conditions requirements, replacing multiple overlapping filings.
National OSH Board to set harmonised safety and health standards across sectors.
Mandatory safety committees in establishments with 500+ workers, improving
workplace accountability.
Higher factory applicability limits, easing regulatory burden for small units while
retaining full safeguards for workers.
In line with the wide-ranging consultations carried out during the drafting of the Labour
Codes, the Government will likewise engage the public and stakeholders in the framing
of the corresponding rules, regulations, schemes, etc. under the Codes. During
transition, the relevant provisions of the existing labour Acts and their respective rules,
regulations, notifications, standards, schemes, etc. will continue to remain in force.
Over the past decade, India has expanded social-security coverage dramatically, rising
from about 19% of the workforce in 2015 to more than 64% in 2025, ensuring that
protection and dignity reach workers across the country, and also earning recognition in
the global arena for this milestone achievement in social protection. The
implementation of the four Labour Codes marks the next major step in this trajectory,
further widening the social-security net and embedding portability of benefits across
states and sectors. With expanded social security, stronger protections and nationwide
portability of entitlements, the Codes place workers, especially women, youth,
unorganised, gig and migrant workers, firmly at the centre of labour governance. By
reducing compliance burden and enabling flexible, modern work arrangements, the
Codes boost employment, skilling and industry growth, reaffirming the Government’s
commitment to a pro-worker, pro-women, pro-youth and pro-employment labour
ecosystem.
*****
Rini Choudhury/Anjelina Alexander
(Release ID: 2192463) Visitor Counter : 234939
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