The Centre on Thursday announced the implementation of the four Labour Codes – the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions (OSHWC) Code (2020). The Codes come into effect from November 21, 2025, replacing 29 Central labour laws.
The Ministry of Labour & Employment said that the move is aimed at simplifying labour regulations, expanding worker protection, and modernising India’s labour framework to reflect contemporary economic and employment realities. The Codes are expected to strengthen social security, ensure safer workplaces, and reduce compliance burdens for industry.
The Ministry noted that many of India’s labour laws date back to the pre-Independence and early post-Independence period, resulting in fragmented and outdated provisions that caused compliance challenges and limited worker protection. The new Codes consolidate these laws and introduce uniform standards across sectors.
Key Systemic Changes
Formalisation of Employment: Appointment letters, earlier not mandatory, will now be compulsory for all workers.
Social Security Coverage: For the first time, all workers – including gig and platform workers – will be eligible for social security benefits such as PF, ESIC and insurance.
Minimum Wages: A universal statutory right to minimum wages replaces the earlier system limited to specific scheduled industries.
Annual Health Check-ups: Employers must provide free annual health check-ups for workers above 40 years of age.
Timely Payment of Wages: Timely wage payment is now mandatory across establishments.
Women’s Employment: Women will be allowed to work night shifts and in all sectors, subject to consent and safety measures.
ESIC Coverage: Coverage is expanded nationwide, with mandatory inclusion for any establishment with even one worker engaged in hazardous processes.
Compliance Burden: Multiple registrations and filings will be replaced with a single registration, single licence, and single return at the national level.
Sector-wise Benefits Under the Labour Codes
Fixed-Term Employees: FTEs will receive benefits equal to permanent workers and will be eligible for gratuity after one year of service.
Gig & Platform Workers: Aggregators must contribute 1–2% of annual turnover toward social security. A universal Aadhaar-linked number will enable portability of benefits.
Contract Workers: Health benefits and social security will be provided by the principal employer. Free annual health check-ups are mandated.
Women Workers: Equal pay for equal work, night-shift flexibility, mandatory representation in grievance committees and expanded family definition for dependent coverage.
Youth Workers: Guaranteed minimum wages, appointment letters, and mandatory wage payment during leave.
MSME Workers: Access to minimum wages, canteens, drinking water, rest areas, and standardised working-hour norms.
Beedi, Cigar, and Plantation Workers: Guaranteed minimum wages, safety training, overtime wages at double rates, and expanded access to ESIC and educational facilities.
Media, IT, Textile and Export Sector Workers: Mandatory appointment letters, timely wage payment, overtime at double wages, and provisions for migrant worker portability.
Mine and Hazardous Industry Workers: National safety standards, annual health check-ups, and mandatory safety committees.
Dock Workers: Formal recognition, social security benefits, and employer-funded health check-ups.
Additional Reforms Introduced
* National floor wage to ensure no worker is paid below a minimum living standard
* Gender-neutral job opportunities and pay, with explicit protection for transgender workers
* “Inspector-cum-Facilitator” system to encourage compliance through guidance rather than punitive action
* Faster dispute resolution through two-member industrial tribunals
* National OSH Board for harmonised safety standards
* Higher applicability limits for certain factories to ease compliance for small units
Transition and Consultation
The Ministry said that existing laws and rules will continue during the transition period until new rules, standards and schemes under the Codes are notified. Stakeholder consultations will be undertaken for finalising these.
Expanding Social Security Coverage
According to government data, social-security coverage has increased from 19% of the workforce in 2015 to over 64% in 2025. Officials described the implementation of the Labour Codes as the next major step in expanding social protection, improving benefit portability, and strengthening safeguards for women, youth, migrant and gig workers.
The Ministry said that the Codes aim to build a “pro-worker, pro-women, pro-youth and pro-employment” labour ecosystem that supports both workforce welfare and industry growth.
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