Government Announces Implementation of Four Labour Codes to Simplify and Streamline Labour Laws - MoL

 Ministry of Labour & Employment

 Government Announces Implementation of Four

 Labour Codes 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

 Posted On: 21 NOV 2025 3:00PM by PIB Delhi

 In a historic decision, the Government of India has announced the implementation of 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 with

 effect 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 India continued to operate under fragmented, complex and in several parts outdated provisions spread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 of

 Employment

 No mandatory appointment

 letters

 Mandatory appointment letters to all

 workers.

 Written proof will ensure transparency, job

 security, and fixed employment.

 

Social Security

 Coverage

 Limited Social Security

 Coverage

 Under Code on Social Security, 2020 all

 workers including gig & platform

 workers to get social security coverage.

 All workers will get PF, ESIC, insurance,

 and other social security benefits.

 

Minimum Wages Minimum wages applied only to

 scheduled

 industries/employments; large

 sections of workers remained

 uncovered

 Under the Code on Wages, 2019, all

 workers to receive a statutory right

 minimum wage payment.

 Minimum wages and timely payment will

 ensure financial security.

 

Preventive

 Healthcare

 No legal requirement for

 employers to provide free

 annual health check-ups to

 workers

 Employers must provide all workers above

 the age of 40 years with a free annual

 health check-up.

 Promote timely preventive healthcare

 culture

 Timely Wages No mandatory compliance for

 employers payment of wages

 Mandatory for employers to provide

 timely wages,

 ensuring financial stability, reducing work

 stress and boosting overall morale of the

 workers.

 

Women

 workforce

 participation

 Women’s employment in night

 shifts and certain occupations

 was restricted

 Women are permitted to work at night

 and in all types of work 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 to

 notified areas and specific

 industries; establishments with

 fewer than 10 employees were

 generally excluded, and

 hazardous-process units did not

 have uniform mandatory ESIC

 coverage across India

 ESIC coverage and benefits are

 extended Pan-India - voluntary for

 establishments with fewer than 10

 employees, and mandatory for

 establishments with even one employee

 engaged in hazardous processes.

 Social protection coverage will be

 expanded to all workers.

 

Compliance

 Burden

 Multiple registrations, licenses

 and returns across various

 labour laws.

 Single registration, PAN-India single

 license and single return.

 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

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