India has entered a new phase of labour reform with the implementation of four consolidated labour codes that overhaul decades-old regulations, expanding wage protection, social security, safety standards and compliance frameworks across the workforce. The labour codes, the Code on Wages, the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code, have now taken effect, replacing 29 fragmented laws and marking one of the most extensive labour reforms since Independence. The government said the move is aimed at building a fairer, more inclusive, and future-ready labour ecosystem suited to changing economic realities and modern employment patterns.
The Code on Wages establishes a statutory right to minimum wages for all employees across all sectors, dismantling the earlier system where minimum wages applied only to scheduled employment, which covered roughly 30 per cent of the workforce. Minimum wages will now apply uniformly, irrespective of industry, category or nature of work, extending legal protection to casual staff, daily wagers and migrant labourers. The code standardises definitions and procedures nationwide to reduce ambiguity and ensure faster, time-bound justice for employers and workers. Officials said the change reduces regional wage disparities, prevents wage undercutting, and supports vulnerable groups who were previously outside wage regulation.
A key component of the wage framework is the introduction of floor wages by the central government. These baseline wages are to be calculated based on minimum living standards, taking into account essential needs such as food and clothing and will be revised at regular intervals. States must ensure their minimum wages are not lower than this central floor. The government said this provision will help reduce inter-state migration driven by wage gaps and support economic equity. Minimum wage rates for timework and piecework will be set according to skill levels, geographical zones and the nature of work, and must be revised at intervals not exceeding five years.
The wage code also tightens rules around working hours, timely payment of wages and wage deductions. Earlier, the protections applied only to employees earning up to ₹24,000 per month. Under the new framework, all employees, regardless of designation or salary, are entitled to timely pay and protection from unauthorised deductions. Employers are now required to issue wage slips to all workers, in physical or electronic form, ensuring transparency, documentation and reduced disputes.
Alongside wage protections, the Code on Social Security expands coverage across the organised, unorganised, gig and platform workforce. For the first time, gig and platform workers have been formally recognised under a national legal framework, with provisions for a Social Security Fund to support benefits such as life insurance, health coverage, disability support and provident fund contributions. A National Social Security Board will advise the government on schemes for these categories, reflecting the growing size of the digital and platform-driven workforce. The code consolidates nine existing laws into a single framework, extending EPFO and ESIC benefits nationwide, both compulsorily for hazardous industries with even one worker and voluntarily for establishments with fewer than 10 employees.
Women employees stand to gain from expanded maternity and workplace protections, including 26 weeks of maternity leave, creche facilities, nursing breaks and a provision allowing work-from-home options where feasible. The code also grants women the right to work at night or in any role subject to consent and safety measures, expanding opportunities in higher-paying roles. The law now provides maternity benefits for adoptive and commissioning mothers as well, reflecting more inclusive recognition of diverse caregiving circumstances.
The Occupational Safety, Health and Working Conditions Code aims to streamline workplace safety by replacing 13 separate laws with a single framework. Every factory employing 500 or more workers, building establishments employing 250 or more and mines employing 100 or more workers will be required to form a safety committee with worker and employer representatives. The code also extends safety, health and welfare protections to all sectors, unlike earlier rules that applied only to seven specific sectors. Free annual health check-ups for all employees have been mandated, which officials say will boost preventive healthcare, early diagnosis and workforce productivity. The National Occupational Safety and Health Advisory Board will set standards for safety and working conditions that states will be required to follow, ensuring uniformity nationwide.
Compliance procedures have also undergone a major shift. The labour codes simplify registration and licensing through single registration, single license and single return systems, reducing the compliance burden on both industry and workers. Officials said the move is intended to reduce red tape, promote ease of doing business and encourage formalisation of employment. Earlier, employers were required to maintain up to 24 registers and 20 forms, which have now been reduced to two registers and six forms.
The government has framed the labour codes as central to building a workforce aligned with India’s long-term development goals. Officials said the reforms enhance wage fairness, protect workers from exploitation, expand social security, strengthen job safety and encourage higher labour force participation, especially among women and gig workers. The changes also introduce mandatory appointment letters for all workers, ensuring documentation for employment terms and job security, a requirement that did not exist earlier.
The broader aim, the government said, is to move India away from colonial-era labour structures that remained largely unchanged for decades and toward a unified framework that reflects global standards. Many countries have updated their labour codes in recent years, while India continued to function under a fragmented regulatory landscape that struggled to keep pace with shifting employment patterns, digital work models and the growth of the service economy. With the new codes in place, the government expects increased productivity, more job creation, expanded social protection and a more resilient industrial ecosystem.
The reforms are also intended to support India’s long-term economic goals by ensuring a stable and protected workforce. Officials said the new framework seeks to balance worker welfare with simplified rules for employers, creating a system that is transparent, predictable and better suited to a growing economy. The government said the implementation of the codes marks a foundational step toward a modern labour environment that supports both economic growth and workforce dignity.
