In a historic decision, the Government of India on dated 21^st November, 2025 has announced that the four Labour Codes- the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 are being made effective from 21st November 2025, rationalising 29 existing labour laws. By modernising labour regulations, enhancing workers' welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat.

Many of India’s labour laws were framed in the pre-Independence and early post-Independence era (1930s–1950s), at a time when the economy and world of work were fundamentally different. While most major economies have updated and consolidated their labour regulations in recent decades, India continued to operate under fragmented, complex and in several parts outdated provisions spread across 29 Central labour laws. These restrictive frameworks struggled to keep pace with changing economic realities and evolving forms of employment, creating uncertainty and increasing compliance burden for both workers and industry. The implementation of the four Labour Codes addresses this long-pending need to move beyond colonial-era structures and align with modern global trends. Together, these Codes empower both workers and enterprises, building a workforce that is protected, productive and aligned with the evolving world of work — paving the way for a more resilient, competitive and self-reliant nation.

A comparison of the labour ecosystem, before and after the implementation of the Labour Codes, is as follows:

Highlights		Pre Labour Reforms	Post Labour Reforms
Formalisation of Employment		No mandatory appointment letters	Mandatory appointment letters to all workers. Written proof will ensure transparency, job security and fixed employment.
Social Security Coverage		Limited Social Security Coverage	Under Code on Social Security,2020all workers including Gig & platform workers to get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits.
Minimum Wages		Minimum wages applied only to scheduled industries/ employments; large sections of workers remained uncovered	Under the Code on Wages, 2019, all workers to receive a statutory right minimum wage payment. Minimum wages and timely payment will ensure financial security.
Preventive Healthcare	No legal requirement for employers to provide free annual health check-ups to workers		Employers must provide all workers above the age of 40 years with a free annual health check-up. Promote timely preventive healthcare culture
Timely Wages	No mandatory compliance for employers payment of wages		Mandatory for employers to provide timely wages, Ensuring financial stability, reducing work stress and boosting overall morale of the workers.
Women workforce participation	Women’s employment in night shifts and certain occupations was restricted		Women are permitted to work at night and in all types of work across all establishments, subject to their consent and required safety measures. Women will get equal opportunities to earn higher incomes– in high paying job roles.
ESIC coverage	ESIC coverage was limited to notified areas and specific industries; establishments with fewer than 10 employees were generally excluded and hazardous-process units did not have uniform mandatory ESIC coverage across India		ESIC coverage and benefits are extended Pan-India- voluntary for establishments with fewer than 10 employees and mandatory for establishments with even one employee engaged in hazardous processes. Social protection coverage will be expanded to all workers.
Compliance Burden	Multiple registrations, licenses and returns across various labour  laws.		Single registration, PAN-India single license and single return. Simplified processes and reduction in Compliance Burden.

While issuing the press release, Sh. Manoj, Kumar, Regional Director, Employees’ State Insurance Corporation, Regional Office, Bengaluru stated that it is a historic deision for ease of doing business while ensuring the interest of workers.  The Government will likewise engage the public and stakeholders in the framing of the corresponding rules, regulations, schemes, etc. under the Codes in line with the wide-ranging consultations carried out during the drafting of the Labour Codes,. During transition, the relevant provisions of the existing labour Acts and their respective rules, regulations, notifications, standards, schemes, etc. will continue to remain in force.

He further stated that India has expanded social-security coverage dramatically, rising from about 19% of the workforce in 2015 to more than 64% in 2025 over the past decade, ensuring that protection and dignity reach workers across the country, and also earning recognition in the global arena for this milestone achievement in social protection. The implementation of the four Labour Codes marks the next major step in this trajectory, further widening the social-security net and embedding portability of benefits across states and sectors. With expanded social security, stronger protections and nationwide portability of entitlements, the Codes place workers, especially women, youth, unorganised, gig and migrant workers, firmly at the centre of labour governance. By reducing compliance burden and enabling flexible, modern work arrangements, the Codes boost employment, skilling and industry growth, reaffirming the Government’s commitment to a pro-worker, pro-women, pro-youth and pro-employment  labour ecosystem.

 

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