India’s labour laws were once fragmented into 29 different Acts. The government has now merged them into four labour codes to revolutionise workplaces and protect workers, including those in the unorganised sector, by ensuring timely wage payments, health and welfare benefits, compensation, occupational safety, and provisions for females, bringing stability and security to both employees and workers.
The central government has introduced four new comprehensive labour codes replacing 29 laws that defined the working conditions of employees and workers. The New labour laws are in effect from November 21, 2025. The Ministry of Labour & Employment released a statement that thoroughly explains the new labour codes. All the previous laws have been categorised in the codes following:
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The Code on Wages |
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The Code on Social Security |
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Occupational Safety, Health and Working Conditions |
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Industrial Relations Code |
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Pre Labour Reforms |
Post Labour Reforms |
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Formalisation of Employment |
No mandatory appointment letters |
Mandatory appointment letters to all workers. Written proof will ensure transparency, job security, and fixed employment. |
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Social Security Coverage |
Limited Social Security Coverage |
Under Code on Social Security, 2020 all workers including gig & platform workers to get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits. |
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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 |
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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 |
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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. |
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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. |
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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. |
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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. |
FTEs will receive all benefits at par with permanent employees, including leave, medical cover, social security, and equal wages, with gratuity after just one year of service. This promotes direct hiring, boosts income security, and reduces excessive contractualisation.
‘Gig work’, ‘platform work’ and ‘aggregators’ are defined for the first time, with mandatory 1–2% contribution by aggregators (capped at 5% of payouts) towards worker welfare. An Aadhaar-linked Universal Account Number will ensure portable, easy access to benefits across states, even after migration.
Fixed-term employees (FTE) are eligible for gratuity after one year of service. The employer will provide health benefits and social security. Legal protection and benefits equal to permanent employees.
Gender discrimination and pay parity are legally prohibited. Women are eligible to work night shifts, including work like underground mining and heavy machinery. “Provision to add parents-in-law in Family Definition of Female employees, expanding dependent coverage and ensuring inclusivity,” released by the Ministry of Labour & Employment.
Minimum wage is guaranteed for all youth workers, to receive appointment letters, payment of wages during leave has been made mandatory, exploitation is prohibited, and workers will receive wages as per the floor wage determined by the Central Government.
Digital and audio-visual workers, including journalists in electronic media, dubbing artists, and stunt persons will now receive full benefits. Mandatory appointment letter for all workers - clearly stating their designation, wages, and social security entitlements. Timely payment of wages ensured. Overtime Work beyond prescribed hours, to be consent based and pay at least double the normal wage rate.
Release of Salary mandatory by the 7th of every month. Transparency and trust ensured. Equal pay for equal work made mandatory, women’s participation is strengthened. Facility for women to work night shifts in all establishments – women to get opportunity to earn higher wages. Timely resolution of harassment, discrimination, and wage related disputes. Guarantee of social security benefits through fixed-term employment and mandatory appointment letters.
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