India’s New Labour Codes Take Effect, Replacing 29 Laws in Major Overhaul

India’s four new Labour Codes came into force on Friday, replacing 29 existing labour laws and ushering in one of the biggest reforms in the country’s labour governance framework.

The Code of Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020) consolidate key regulations into a unified system aimed at raising worker protections, simplifying compliance and modernising workplace standards.

The laws introduce uniform wage rules, stricter safety norms, broader social security coverage and streamlined processes for employers.

Prime Minister Narendra Modi welcomed the rollout with a “Shramev Jayate” message, describing the reforms as “the most comprehensive and progressive since independence.”

“India’s new Labour Codes strengthen the rights of every worker—formal, informal and gig,” Modi said, calling the move a major step towards a Viksit Bharat.

Union Labour Minister Mansukh Mandaviya said the changes guarantee timely minimum wages, appointment letters, equal pay for women, gratuity for fixed-term employees after one year, free annual health check-ups for workers above 40, double wages for overtime and full health protection in hazardous sectors. He said the reforms mark a significant milestone toward building a self-reliant, developed India by 2047.

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What the New Labour Codes Deliver Across Sectors

Fixed-Term Employees (FTE)
• Same benefits as permanent staff
• Gratuity after 1 year
• Equal wages for equal roles
• Encourages direct hiring and reduces excessive contractualisation

Gig & Platform Workers
• Clear definitions for gig and platform work
• Aggregators to contribute 1–2% of turnover (capped at 5% of worker payouts) to social security
• Aadhaar-linked UAN for portable benefits

Contract Workers
• Access to health and social security under principal employer
• FTE-style benefits and gratuity after 1 year
• Free annual health check-ups

Women Workers
• Ban on gender discrimination
• Equal pay
• Night shifts allowed with consent and safety measures
• Mandatory women representation in grievance panels
• Parents-in-law recognised as dependents

Youth Workers
• Guaranteed minimum wage
• Appointment letters for all jobs
• Paid leave and wages linked to national floor wage

MSME Workers
• Full social security coverage
• Minimum wage and timely payments
• Canteens, drinking water and rest facilities
• Standard work hours and double overtime pay

IT & ITES Employees
• Salaries to be released by the 7th of each month
• Equal pay and expanded women’s participation
• Night shifts for women with safety protocols
• Faster dispute resolution for wage or harassment issues
• Mandatory appointment letters and social security

Cross-Sector Reforms
• National Floor Wage for uniform minimum standards
• Gender-neutral employment and equal opportunities, including for transgender workers
• “Inspector-cum-Facilitator” model for supportive compliance
• Faster dispute settlement via Industrial Tribunals
• Single registration, licence and return across codes
• National OSH Board for unified safety norms
• Safety committees in establishments with 500+ workers
• Updated factory thresholds to ease compliance for smaller units