Transforming India’s Workforce
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How Four Labour Codes are Building a Foundation for
Growth, Welfare, and a Self-Reliant Nation.
29 Central Labour Laws = 4 Unified Codes
Government of India | Ministry of Labour & Employment | November 2025
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The Case for Transformation: An Outdated and Complex System
India's previous labour laws, many framed in the pre-Independence era (1930s-1950s), struggled to keep pace with modern economic
realities and new forms of employment. This created uncertainty and a high compliance burden for both workers and industry.
The Old Framework The Need for Change
e 29 fragmented and overlapping Central labour laws. e Align India's labour ecosystem with global standards.
® Provisions misaligned with a modern, globalized economy. * Foster a more resilient, competitive, and self-reliant nation.
¢ High compliance burden with multiple registrations and returns. e Address a long-pending need for modernization.
Gaps in protection for emerging worker categories.
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A Landmark Solution: Unifying Labour Governance
The Government of India has consolidated 29 Central laws into four comprehensive codes, effective November
21, 2025. This historic move modernizes regulations, enhances worker welfare, and aligns the labour ecosystem
with the evolving world of work.
The Code on Wages, 2019 | Thelndustrial Relations Code, 2020
& : :
The Code on Social Security, 2020
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The Occupational Safety, Health and
Working Conditions Code, 2020
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From Complexity to Clarity: The New Labour Ecosystem
Pre-Labour Reforms Post-Labour Reforms
¢ Formalisation: No mandatory appointment Formalisation: Mandatory appointment
letters. letters for all workers, ensuring job security.
e Social Security: Limited coverage, excluding Social Security: Universal coverage,
many worker types. including gig and platform workers.
e Minimum Wages: Applied only to scheduled Minimum Wages: A statutory right for all
industries/employments. workers, ensuring financial security.
e Compliance: Multiple registrations, licenses, Compliance: Single registration, a PAN-
and returns. India single license, and a single return.
e Women'’s Participation: Restrictions on Women'’s Participation: Permitted to
night shifts and certain occupations. work in all sectors and at night, with
consent and safety measures. -
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Strengthening the Core: A New Era of Worker Protection and Dignity
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Preventive Healthcare
Employers must provide free annual health check-ups for all workers
above the age of 40.
Timely Wages
Mandatory for employers to provide timely wage payments, reducing
worker stress and boosting morale.
Universal ESIC Coverage
ESIC benefits extended Pan-India, mandatory for establishments with
even one employee in hazardous processes.
Fairer Enforcement
A shift from a punitive inspector system to an * nspector-cum-Facilitator’
model focused on guidance and compliance su pport.
Faster Dispute Resolution
Introduction of two-member Industrial Tribuna s and options for direct
access after conciliation for predictable resolutions.
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Empowering Women in the Workforce:
Driving Equality and Opportunity
" Equal Opportunity: Women are permitted to work
at night and in all types of work across all
establishments, including underground mining and
heavy machinery, subject to consent and safety
measures.
" Equal Pay: Gender discrimination is legally prohibited,
and equal pay for equal work is ensured.
" Representation: Mandatory women's representation
in grievance redressal committees.
+~ Expanded Family Definition: Provision to include
parents-in-law in the Family Definition for female
employees, expanding dependent coverage.
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Spotlight on the Modern Workforce: New Rights for New Realities
For Gig & Platform Workers For Fixed-Term Employees (FTESs)
@ First-Time Recognition: ‘Gig work’, ‘Platform work’, © Parity with Permanent Staff: FTEs receive all
and ‘Aggregators’ are legally defined for the first time. benefits equal to permanent workers, including leave,
medical, and social security.
Social Security Contribution: Aggregators must
contribute 1-2% of annual turnover towards social © Early Gratuity: Gratuity eligibility is reduced from
security for these workers. five years to just one year of continuous service.
Portable Benefits: An Aadhaar-linked Universal © Reduced Contractualisation: Promotes direct hiring
Account Number (UAN) ensures welfare benefits are by employers, providing greater stability.
portable across states. A NotebookLM
Spotlight on Critical Sectors: Supporting MSMEs
and Protecting Migrant Labour
For MSME Workers For Migrant Workers
@ Universal Coverage: All MSME workers are covered @ Equal Benefits: All migrant workers (direct, contractor-
under the Social Security Code, 2020. based, and self-migrated) get equal wages and welfare
benefits.
@ Guaranteed Rights: Minimum wage, timely payments,
e B e R B gt e e @ Portability: Public Distribution System (PDS) benefits
are now fully portable.
@ Improved Conditions: Access to facilities such as @ Simplified Claims: Workers can raise claims for pending
canteens, drinking water, and rest areas. dues for up to 3 years, facilitating easier resolution.
@ Overtime Pay: Provision for double wages for overtime
work.
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Spotlight on Specialized Industries: Enhancing Safety and Welfare
Hazardous Industry & IT & ITES [ Export Sector
Mine Workers Workers |
© Mandatory free annual health check-ups for | @ Mandatory salary release by the 7th of © Fixed-term workers receive full gratuity,
all workers. _' every month. (1 PF, and other social security benefits.
© Central Government to frame national © Guaranteed social security through _ © Option to avail annual leave after 180
standards for occupational safety and health. fixed-term employment and mandatory days of work.
© Mandatory safety committees at each site appointment letters. © Women allowed to work night shifts with
for monitoring. © Timely resolution of harassment, ' consent and full safety measures
e Commuting accidents for mine workers may discrimination, and wage-related disputes. | (transport, CCTV).
be treated as employment-related.
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Fueling Growth: A Simplified, Pro-Business
Compliance Framework
Key Benefits for Industry
One Nation, One System
Single registration, a PAN-India single license, and a
. single return replace multiple overlapping filings.
, Reduced Burden for Small Units
Higher factory applicability limits ease the
regulatory burden for smaller enterprises.
Predictable Environment
1l Faster and more predictable dispute resolution
mechanisms reduce uncertainty.
O Focus on Facilitation
One Nation,
One System
qFO The ‘Inspector-cum-Facilitator’ model promotes a
@ supportive rather than adversarial relationship with
authorities.
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6 4%
Of India’s workforce now covered by the social
security net, up from just 19% in 2015.
Expansion of Social Security Coverage in India
70%
60%
40%
20%
0%
2015 2025
This milestone achievement has earned global recognition for India's progress in social protection. The
. Four Codes further widen this net, embedding portability of benefits across states and sectors for all workers.
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The Four Labour Codes are fundamental to building g
a self-reliant India by creating:
A Protected, Future-Ready Workforce: With enhanced
welfare and social justice for all.
Stronger, Resilient Industries: Enabled by simplified
compliance and flexible, modern work arrangements.
A Globally Competitive Ecosystem: By aligning India’s
labour standards with international best practices.
Increased Employment and Skilling: By boosting
industry growth and formalization.
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A Collaborative ane and Phased Transition
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Stakeholder Engagement Continuity and Stability
Stakeholder Engagement Continuity During Transition
The government will engage the public and To ensure stability, the relevant provisions of
stakeholders in the framing of all the 29 existing labour Acts and their
corresponding rules, regulations, and respective rules will remain in force until the
schemes under the Codes. new framework is fully operational.
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A New Social Contract for a
218t Century India
The Four Labour Codes place workers—especially women, youth,
unorganised, gig, and migrant workers—firmly at the centre of labour
governance. They reaffirm the Government’s commitment to a pro-worker,
pro-women, pro-youth, and pro-employment ecosystem, balancing social
justice with economic dynamism for a stronger nation.