Indian government implements four labour codes targeting wages, safety, social security, and enhanced workers' welfare

The Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020 and Occupational Safety, Health and Working Conditions Code, 2020 aim to modernise labour regulations and align the labour ecosystem with the evolving world of work.

India has officially implemented four labour codes with effect from 21 November. 

The four codes – namely 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 – aim to modernise labour regulations, enhance workers' welfare and align the labour ecosystem with the evolving world of work.

This landmark move is said to lay the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat – India's mission to become self-reliant.

According to the Ministry of Labour & Employment, 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their labour regulations in recent decades, India continued to operate under fragmented, complex and in several parts outdated provisions spread across its 29 existing, central labour laws, hindering the nation to stay on par with changing economic realities and evolving forms of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 aims to address the need to align with modern global trends. Together, these codes will empower both workers and enterprises, to build a more resilient, competitive, and self-reliant nation.

Here is a comparison of the labour ecosystem, before and after the implementation of the labour codes: 

	Pre-labour reforms	Post-labour reforms
Formalisation of employment	Previously, employers were not required to issue appointment letters.	Under the new regulations, all workers must receive mandatory appointment letters. Written proof will ensure transparency, job security, and fixed employment.
Social security coverage	Social security coverage was limited.	Under the Code on Social Security, 2020, all workers –including gig and platform workers – are entitled to social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits.
Minimum wages	Minimum wages applied only to scheduled industries or employment, leaving many workers uncovered.	Under the Code on Wages, 2019, all workers are entitled to receive a statutory minimum wage payment. This ensures financial security through minimum wage protection and timely payment.
Preventive healthcare	There was no legal requirement for employers to provide free annual health check-ups to workers.	Employers must now provide all workers aged 40 and above with a free annual health check-up. This promotes a culture of timely preventive healthcare.
Timely wages	No mandatory compliance for employers payment of wages was required.	It is now mandatory for employers to provide wages on time, ensuring financial stability, reducing stress, and boosting overall worker morale.
Female 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. This expands equal opportunities and access to higher-paying roles.
ESIC coverage	ESIC coverage was limited to notified areas and certain industries; establishments with fewer than 10 employees were generally excluded, and hazardous-process units lacked uniform mandatory ESIC coverage nationwide.	ESIC coverage is now extended pan-India — voluntary for establishments with fewer than 10 employees and mandatory for any establishment with even one employee engaged in hazardous processes. This significantly expands social protection for all workers.
Compliance burden	Multiple registrations, licenses and returns across various labour laws were required.	A single registration, a pan-India single licence, and a single return system now apply. These simplified processes reduce the overall compliance burden for employers.

Benefits of labour reforms across key sectors: 

1. Fixed-Term Employees (FTE)

• FTEs will receive all benefits equal to permanent workers, including leave, medical, and social security.
• Gratuity eligibility is reduced to one year instead of five.
• Equal wages with permanent staff improve income and protection.
• Encourages direct hiring and reduces excessive contractualisation.

2. Gig & platform workers

• ‘Gig work’, ‘Platform work’, and ‘Aggregators’ have been formally defined for the first time.
• Aggregators must contribute 1–2% of annual turnover, capped at 5% of the amount paid or payable to gig and platform workers.
• An 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 employment increases employability and ensures social security benefits equal to permanent staff.
• FTEs become eligible for gratuity after one year of continuous service.
• Principal employers must provide health and social security benefits to contract workers.
• Workers will receive a free annual health check-up.

4. Female workers

• Gender discrimination is legally prohibited.
• Equal pay for equal work is ensured.
• Women may work night shifts and in all types of work (including underground mining and heavy machinery), subject to their consent and required safety measures.
• Mandatory representation of women in grievance redressal committees.
• Female employees may include parents-in-law under the family definition, expanding dependent coverage.

5. Youth workers 

• Minimum wage is guaranteed for all workers.
• All workers must receive appointment letters, supporting social security, an employment record, and formal employment status.
• Employer exploitation is prohibited; wages during leave must be paid.
• Workers will receive wages aligned with the Central Government’s floor wage to ensure a decent standard of living.

6. MSME workers

• All MSME workers are covered under the Social Security Code, 2020, based on employee count.
• Minimum wages are guaranteed for all.
• Workers will have access to facilities such as canteens, drinking water, and rest areas.
• Provisions include standard working hours, double overtime wages, and paid leave.
• Timely wage payment is ensured.

7. Beedi & cigar workers

• Minimum wages guaranteed for all.
• Working hours capped at eight to 12 hours per day and 48 hours per week.
• Overtime must be voluntary and paid at least double the normal wage rate.
• Timely payment of wages is ensured.
• Workers become eligible for a bonus after completing 30 days of work in a year.

8. Plantation workers

• Plantation workers are now covered under the OSHWC Code and the Social Security Code.
• Labour Codes apply to plantations with more than 10 workers or five or more hectares.
• Mandatory safety training on handling, storing, and using chemicals.
• Protective equipment is required to prevent accidents and chemical exposure.
• Workers and their families will receive full ESI medical facilities, along with guaranteed education facilities for their children.

9. Audio-visual & digital media workers

• Digital and audio-visual workers—including electronic media journalists, dubbing artists, and stunt performers — will now receive full benefits.
• Mandatory appointment letters must specify designation, wages, and social security entitlements.
• Timely payment of wages is ensured.
• Overtime must be voluntary and paid at least double the normal wage rate.

10. Mine workers

• Commuting accidents may be treated as employment-related under specified conditions of time and place.
• Central Government standards will ensure consistent workplace safety and health conditions.
• Free annual health check-ups will be provided to all workers.
• Working hours limited to eight to 12 hours per day and 48 hours per week to support safety and work–life balance.

11. Hazardous industry workers

• All workers will receive free annual health check-ups.
• National safety standards will be framed by the Central Government.
• Women may work in all establishments, including hazardous roles, underground mining, and heavy machinery, with equal opportunity ensured.
• Mandatory safety committees at each site will oversee on-site safety and the safe handling of hazardous chemicals.

12. Textile workers

• All migrant workers (direct, contractor-based, and self-migrated) will receive equal wages, welfare benefits, and PDS portability.
• Workers may raise claims for up to three years for pending dues.
• Overtime will be paid at double wages.

13. IT & ITES workers

• Salary must be released by the 7th of every month, ensuring transparency and trust.
• Equal pay for equal work is mandatory, strengthening women’s participation.
• Women may work night shifts across all establishments, enabling access to higher-paying roles.
• Timely resolution of harassment, discrimination, and wage-related disputes is ensured.
• Social security benefits are guaranteed through fixed-term employment and mandatory appointment letters.

14. Dock workers

• All dock workers will receive formal recognition and legal protection.
• Mandatory appointment letters ensure access to social security benefits.
• Provident fund, pension, and insurance coverage apply to all workers, including contract or temporary workers.
• Employer-funded annual health check-ups are mandatory.
• Dock workers will have access to medical facilities, first aid, sanitary areas, and washing amenities to support safe working conditions.

15. Export sector workers

• Fixed-term workers in the export sector will receive gratuity, PF, and other social security benefits.
• Workers may avail annual leave after 180 days of work in a year.
• Rights include timely wage payments, no unauthorised deductions, and no wage ceiling restrictions.
• Women may work night shifts with consent, enabling higher earning potential.
• Safety measures include written consent, double wages for overtime, safe transportation, CCTV monitoring, and security arrangements.

Beyond the above, the labour codes has introduced several more reforms that aims to strengthen worker protection and simplify compliance for employers: 

1. National floor wage to ensure no worker receives a wage below the minimum living standard.
2. Gender-neutral pay and job opportunities, explicitly prohibiting discrimination—including against transgender persons.
3. Inspector-cum-Facilitator system, shifting enforcement towards guidance, awareness and compliance support rather than punitive action.
4. Faster and predictable dispute resolution, with two-member Industrial Tribunals and the option to approach tribunals directly after conciliation.
5. Single registration, single licence and single return across safety and working-conditions requirements, replacing multiple overlapping filings.
6. National OSH Board to set harmonised safety and health standards across sectors.
7. Mandatory safety committees in establishments with 500+ workers, improving workplace accountability.
8. 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 also engaged with 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, and more continue to remain in force.