The Union government has brought all four labour codes into effect starting Friday, marking the biggest overhaul of India's labour framework in decades. According to the Press Information Bureau (PIB), the move consolidates 29 central labour laws into a simplified system aimed at improving worker welfare, reducing compliance burden and aligning India's labour ecosystem with global standards.
Many of the older laws go back to the 1930s-50s, creating overlaps and inconsistencies. The government says the new codes, Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and Occupational Safety, Health and Working Conditions Code (2020), make the regulatory framework "future-ready" and support both workforce protection and industry growth.
Universal minimum wages and timely pay
The Code on Wages guarantees minimum wages for all workers, moving away from the earlier system where wage protection applied only to scheduled industries. Timely wage payment is now mandatory, aimed at improving financial stability and reducing distress.
The Code on Social Security extends protection to gig workers, platform workers and all categories of employees. Benefits such as EPF, ESIC, insurance and gratuity become widely accessible. Gig and platform aggregators will contribute 1-2 per cent of annual turnover, capped at 5 per cent of payouts to workers.
Workers above 40 will receive free annual health check-ups. Sectors such as mining, hazardous industries, plantations and docks will have stronger safety requirements. Women can work in all occupations, including night shifts and hazardous roles, with mandatory safety measures.
Employers must issue appointment letters to all workers, important for proving employment history, securing loans and accessing formal benefits.
Fixed-term employees: To receive benefits equal to permanent staff, gratuity eligibility cut to one year.
Women workers: Protected from discrimination; allowed night shifts with consent; equal pay mandated.
Youth and MSME workers: Guaranteed minimum wages, formal employment records and timely wages.
Textile and migrant workers: Access to equal wages, welfare schemes and portability of PDS benefits.
IT/ITES employees: Salary must be released by the 7th of every month; faster resolution of workplace disputes.
Audio-visual and media workers: Mandatory appointment letters and protection for overtime and wage delays.
The government also plans further stakeholder consultations while transitioning from old regulations. Existing rules will continue where required until new schemes are notified.
For millions of families, these changes could mean:
With the move, the government aims to build a pro-worker, pro-women and pro-employment labour environment, the PIB release noted.