New Labour Codes come into force in India; Govt assures minimum wage, social security to 40 cr workers

New Delhi: In a sweeping reform of India’s labour regulations, the government on Friday brought all four Labour Codes into force, marking a major overhaul that introduces universal social security for gig and platform workers, mandatory appointment letters for every employee, statutory minimum wages, and assured timely wage payments across all sectors.

The four Codes — the Code of Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (OSHWC) (2020) — replace 29 separate laws with a unified, modern labour framework effective immediately.

Key reforms include enhanced protections and workplace safety for women, permission for night shifts, annual free health check-ups for workers aged 40+, countrywide ESIC coverage including in hazardous industries, and a streamlined system for registration, licensing and returns.

Prime Minister Narendra Modi, in posts on X, said the Codes will lay a “strong foundation for universal social security, minimum and timely wages, safe working environments, and greater opportunities — especially for Nari Shakti and Yuva Shakti.” He added that the reforms strengthen worker rights, boost productivity, encourage job creation, and support the vision of a developed India.

Calling the initiative one of the most ambitious labour-sector reforms since Independence, Modi said it empowers workers while significantly reducing compliance burdens and improving the ease of doing business.

Labour Minister Mansukh Mandaviya said the new framework formalises employment, expands social-security coverage, and aligns India’s labour standards with global norms. He highlighted systemic changes such as a national floor wage, gender-neutral work policies, an Inspector-cum-Facilitator system encouraging cooperative compliance, quicker dispute settlement through two-member tribunals, and a National OSH Board to standardise safety practices.

The government will now begin consultations to draft detailed rules and schemes. During the transition phase, provisions from older labour laws will continue where needed, reported PTI.

Social-security coverage has already grown from 19% in 2015 to 64% in 2025, and officials say implementation of the Codes will further widen protection, simplify business operations and help build a worker-centric labour ecosystem. The Labour Ministry described the Codes as foundational to the goal of Aatmanirbhar Bharat.

Mandaviya emphasised that from November 21, every worker is assured dignity: minimum wages for all, mandatory appointment letters, equal treatment for women, gratuity for fixed-term employees after one year, free yearly health check-ups for workers over 40, double wages for overtime, full health protection for those in hazardous sectors, and enhanced social justice aligned with international benchmarks. He termed these reforms a major step toward a developed India by 2047.

Under the Social Security Code, 2020, all workers — including gig and platform workers — will be covered under social security systems, such as PF, ESIC, insurance and other welfare benefits. The Code on Wages, 2019, guarantees statutory minimum wages and ensures prompt payment for every worker.

ESIC benefits will now be available across India — optional for establishments with fewer than 10 workers, but compulsory even for units with a single employee engaged in hazardous processes.

Fixed-term employees will receive all benefits on par with permanent staff, including leave, medical benefits and social security. For the first time, the Codes formally define gig work, platform work and aggregator businesses.

Aadhaar-linked Universal Account Numbers will ensure portability of welfare benefits across states, enabling workers to retain access regardless of migration.

Plantation workers, as well as digital and audiovisual professionals like electronic media journalists, dubbing artists and stunt performers, will also receive enhanced protections under the OSHWC and Social Security Codes.