Aatmanirbhar pushes: India rolls out unified labor codes for a future-ready workforce. Check details

In a landmark labor reform, the Government of India on Friday notified the implementation of four long-awaited labor codes: the Wages Code (2019), the Industrial Relations Code (2020), the Social Security Code (2020) and the Safety, Health and Working Conditions Code (OSHWC) (2020). Coming into force on November 21, 2025, the measure consolidates and streamlines 29 central labor laws, many of which date back to the pre-independence and early post-independence period.

Terming the milestone as “historic”, the Ministry of Labor and Employment said the new framework is designed to ensure better wages, enhanced safety, stronger social security and better welfare for India’s workforce. It also aligns the country’s labor ecosystem with global standards while supporting a more resilient, modern and Aatmanirbhar Bharat-ready economy.

Modernizing the colonial era work environment

India’s labor regulations are based on laws developed between the 1930s and 1950s, a time when work structures, technology and economic realities were very different. Over time, these fragmented and complex laws have created uncertainty for workers and increased compliance burdens for the industry.

The four labor codes aim to remedy this situation by creating a unified, transparent and future-ready system. Their implementation is expected to empower workers – including women, youth, gig workers and migrants – while allowing industries to grow with less regulatory friction.

Before vs. After: key transformations

1. Formalization: Appointment letters, previously non-mandatory, will now be mandatory for all workers, strengthening transparency, job security and formal employment records.
2. Social security: Coverage extends to all workers, including gig and platform workers. Benefits such as PF, ESIC, insurance and pensions will become universally accessible.
3. Minimum salary: The minimum wage, previously limited to scheduled industries, will now apply to all workers in the country under a legal right to fair remuneration.
4. Health and safety: Employers must offer free annual health exams to workers over 40. Workplace safety standards will be harmonized through a national OSH council.
5. One-off salaries: Employers are now legally required to ensure timely payment of wages.
6. Participation of women: Women are allowed to work at night and in all professions – including mining, heavy machinery and hazardous roles – with mandatory safety measures and explicit consent.
7. Ease of compliance: Multiple registrations and filings will be replaced by a single permit, registration and declaration, significantly reducing the compliance burden on employers.

Sectoral Improvements

The codes introduce broad protections across all sectors:

• Fixed-term employees: Benefits from benefits equal to permanent staff; eligibility for gratuity after one year.
• Gig and platform workers: Legally defined for the first time; aggregators will contribute 1 to 2% of their turnover to social security.
• Contract workers: Guaranteed social security, health benefits and annual health check-up.
• Workers: Discrimination based on sex is prohibited; equal pay is mandatory. Mandatory representation on grievance committees.
• Youth workers: Mandatory appointment letters, minimum wage protections and paid leave.
• MSMEs: All workers covered by social security; standardized timings, overtime norms and basic facilities ensured.
• Beedi, Plantation, Textile, IT/ITES, Mining, Dock, Export and Hazardous Industries: Salaries, working hours, protective equipment, medical facilities, grievance systems and expanded safety provisions.
• Audiovisual and digital media: Mandatory appointment letters, social security rights and timely salary mandates.

Extended social security and national minimum wage

A national wage floor will ensure that no worker earns below a basic living standard. The OSHWC Code and Social Security Code cover plantations, hazardous industries, transportation, digital media and much more.

Gender neutrality is embedded in all provisions – explicitly prohibiting discrimination against women and transgender people.

Smoother dispute resolution

The new inspector-facilitator model focuses on guidance and compliance rather than punitive measures. Faster resolution of disputes will be made possible thanks to labor courts composed of two members, to whom workers will be able to apply directly after conciliation.

A major step forward in the social protection journey

India’s social security coverage increased from 19% of the working population in 2015 to more than 64% in 2025, according to the ministry. Labor codes should further expand this coverage, incorporating portability of benefits for migrant workers, platform workers, non-unionized workers.

The government said broad consultations with stakeholders would continue as rules and programs were finalized. Existing laws will remain in effect during the transition. The Codes mark a decisive shift towards a pro-worker, pro-women and pro-industry ecosystem – supporting job creation, skills and a future-ready workforce.