In a significant reform of labor legislation, the government has officially implemented four Labour Codes, which aim to provide universal social security for gig workers, require appointment letters for all employees, and establish statutory minimum wages with timely payments across various sectors. The Codes — the Code of Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020) — will replace 29 fragmented laws with a comprehensive and modern framework. Key changes include enhanced rights and safety measures for women, the provision for night-shift work, free annual health check-ups for workers over 40, nationwide ESIC coverage including in hazardous workplaces, and a streamlined system for registration, licensing, and returns.
Other systemic reforms feature a national minimum wage, gender-neutral work policies, an Inspector-cum-Facilitator model to support compliance, quicker dispute resolution through two-member tribunals, and the establishment of a National Occupational Safety and Health Board to standardize safety practices. The government will begin consultations to develop detailed rules and schemes, while existing labor laws will remain in effect during the transition period. Social security coverage has increased from 19% in 2015 to over 64% in 2025. The enforcement of these Labour Codes represents a significant advancement in broadening worker protections, simplifying business operations, and fostering a pro-worker labor environment. According to a statement from the labor ministry, these Codes are foundational for Aatmanirbhar Bharat.
India’s labor laws were originally established during the pre-Independence and early post-Independence periods (1930s–1950s), a time when the economy and working conditions were vastly different. Labor Minister Mandaviya stated on X, ‘Modi Government’s Guarantee: Dignity for Every Worker! From today, the new labour codes have been made effective in the country.’ He emphasized that these codes would ensure minimum wages for all workers, appointment letters for youth, equal pay and respect for women, social security for 400 million workers, gratuity for fixed-term employees after one year, free health check-ups for those over 40, double wages for overtime, complete health security for workers in hazardous sectors, and social justice according to international standards.
‘These reforms are not just ordinary changes, but a significant step taken by Prime Minister Shri Narendra Modi for the welfare of the workforce.
