The Government of India has formally brought into force all four major labour codes — the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions Code (2020). The new regime takes effect from November 21, 2025, marking the country’s biggest labour law overhaul in decades.
Key Changes Under the New Labour Framework
The four Codes consolidate 29 central labour laws into a unified structure aimed at simplifying compliance and aligning regulations with today’s evolving workforce.
Major updates include:
- Mandatory appointment letters for all workers.
- National floor wage to ensure uniform minimum pay standards across states.
- An inspector-cum-facilitator model replacing traditional inspections, combining compliance checks with guidance.
- Single registration, single licence and single return system for workplace safety and operating requirements.
- Expanded social security coverage to include gig workers and platform workers under the Code on Social Security 2020.
- National social security coverage has risen from 19% in 2015 to 64% in 2025.
Why the Overhaul Was Needed
India’s previous labour laws — many written between the 1930s and 1950s — had become fragmented and unable to meet the needs of a modern economy. The new Codes aim to:
- Strengthen worker welfare and protections,
- Reduce compliance burden for businesses,
- Integrate diverse employment formats, and
- Create a coherent regulatory system to support a flexible and resilient industrial ecosystem.
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