India Rolls Out Historic Labour Reforms: Four New Labour Codes Effective from November 21, 2025
He described the reforms as a major step towards worker welfare and a self-reliant India by 2047.
India Rolls Out Historic Labour Reforms: Four New Labour Codes Effective from November 21, 2025
The Central Government has implemented four new labour codes. It has consolidated 29 existing labour laws. This is a transformative step for India’s workforce, a move hailed as “one of the most comprehensive and progressive labour-orientated reforms since Independence” by “Prime Minister Narendra Modi” on social media platform X (formerly Twitter). Union Minister of Labour and Employment Mansukh Mandaviya announced this initiative. He described the reforms as a major step towards worker welfare and a self-reliant India by 2047.
According to the Ministry of Labour & Employment, the new framework encompasses the “Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020)”. These codes modernise outdated provisions from the pre- and early post-Independence era, simplify compliance, and align India’s labour laws with global standards.
Some of the key highlights include mandatory appointment letters for workers, a guarantee of formal employment, universal minimum wages and timely wage payment, and social security coverage for gig, platform, and fixed-term employees, including provident fund, ESIC, insurance, and gratuity benefits. Employers must also provide free annual health check-ups for workers above 40 years. Women are now allowed to work night shifts under safety measures. It promotes equality and workforce participation.
The reforms specifically address the gig economy challenges. Aggregators such as Swiggy and Zomato are required to contribute 1–2% of their annual turnover toward a Social Security Fund for delivery partners and platform workers to ensure health, life, and old-age benefits. Harpreet Singh Saluja, president of the IT and ITES workers’ union NITES, said that the fixed-term employees will now enjoy the same rights and benefits as permanent staff, creating uniformity in working hours, overtime, and compensation.
Simplification measures include single registration, licence, and return systems, digital compliance mechanisms, and a National Occupational Safety & Health Advisory Board. The codes also expand the definition of workers, cover inter-state migrant employees, and mandate safety committees in establishments with 500 or more employees.
India focuses on creating a balance between worker welfare and economic efficiency, promoting formalisation, inclusivity, and transparency across sectors with these reforms. Mansukh Mandaviya emphasised that the new labour codes guarantee dignity, social security, and fair wages for every worker, reflecting the government’s vision of a modern, equitable, and empowered workforce.