The government has made four labor codes effective to simplify and streamline labor laws.

 

The government has made four labor codes effective to simplify and streamline labor laws.

Four Labor Codes herald transformational change: better wages, safety, social security and improved welfare for India's workforce

The codes lay the foundation for a protected, future-ready workforce and resilient industries, boost employment and advance labor reforms for a self-reliant India.

The Code aligns India's labor ecosystem with global standards, ensuring social justice for all workers

In a landmark decision, the Government of India has announced that four labor codes – the Code on Wages, 2019, the Code on Industrial Relations, 2020, the Code on Social Security, 2020 and the Code on Occupational Safety, Health and Working Conditions, 2020 are being implemented with effect from November 21, 2025, rationalizing 29 existing labor laws. By modernizing labor rules, enhancing worker welfare and aligning the labor ecosystem with the evolving world of work, this historic step lays the foundation for a future-ready workforce and strong, resilient industries driving labor reforms for a self-reliant India.

 

Many of India's labor laws were created in the pre-independence and early post-independence era (1930s–1950s), at a time when the economy and the world of work were fundamentally different. While most major economies have updated and consolidated their labor regulations in recent decades, India continues to operate under fragmented, complex and in many parts outdated provisions spread across 29 central labor laws. These restrictive frameworks are struggling to keep pace with changing economic realities and emerging forms of employment, creating uncertainty and increasing compliance burden for both workers and the industry. Implementation of four labor codes solves this long pending problem.

3. Contract Labour:

Fixed Term Employees (FTE) will increase employability and ensure benefits like social security, legal protection at par with permanent employees.

Fixed term employees will become eligible for gratuity after one year of continuous service.

The principal employer will provide health benefits and social security benefits to the contract workers.

● Workers will get free annual health checkup.

         4. Women Workers:

Gender discrimination is legally prohibited.

Equal pay for equal work was ensured.

Women are allowed to work in night shifts and in all types of work (including underground mining and heavy machinery), subject to their consent and mandatory safety measures.

Women's representation mandatory in grievance redressal committees

Provision to include in-laws in the family definition of women employees, expanding dependent coverage and ensuring inclusivity.

         5. Youth Worker:

Minimum wage is guaranteed for all workers.

Providing appointment letters to all workers, - promoting social security, employment history and formal employment.

Exploitation of workers by employers is prohibited – payment of wages during leave is made mandatory.

To ensure a decent standard of living, workers will get wages as per the minimum wage set by the Central Government.

         6. MSME Workers:

All MSME workers are covered under the Social Security Code, 2020, with eligibility based on employee strength.

Guaranteed minimum wage for all workers.

Workers will have access to facilities like canteen, drinking water and rest areas.

Provision for standard working hours, double overtime pay and paid leave.

Timely payment of salaries was ensured.

7. Beedi and Cigar Workers:

Guaranteed minimum wage for all.

Working hours are fixed at 8-12 hours per day and 48 hours per week.

Overtime work beyond the prescribed hours, to be agreed upon and paid at least double the normal wage rate.

Timely payment of salaries was ensured.

Workers are eligible for bonus after completing 30 days of work in a year.

      8. Plantation Workers:

Plantation workers have now been brought under the OSHWC code and social security code.

The Labor Code applies to plantations with more than 10 workers or 5 or more hectares.

Mandatory safety training on handling, storing and using chemicals.

Protective equipment mandatory to prevent accidents and chemical exposure.

Workers and their families will get full ESI medical facilities; Education facilities are also guaranteed for their children.

 

 

     9. Audio-Visual and Digital Media Workers:

Digital and audio-visual personnel including electronic media journalists, dubbing artists and stunt persons will now get full benefits.

Mandatory appointment letter for all workers – clearly mentioning their designation, salary and social security entitlements.

Timely payment of salaries was ensured.

Overtime work beyond the prescribed hours, to be agreed upon and paid at least double the normal wage rate.

     10. Mine Workers:

The Social Security Code considers certain transportation accidents as employment-related, subject to time and place of employment conditions.

The Central Government notified standards to standardize occupational safety and health conditions at the workplace.

Health protection will be ensured for all workers. Free annual health checkup will be provided.

Working hours are capped at 8 to 12 hours per day, 48 hours per week to ensure health and work-life balance.

    11. Hazardous Industry Workers:

All workers will get

   12. Textile Workers:

All Migrant Workers (direct, contractor-based and self-migrated) to get Equal wages, welfare benefits and PDS portability benefits.

Workers can raise claims for upto 3 years for settlement of pending dues, facilitating flexible and easy resolution.

Provision for double wages for workers for overtime work.

   13. IT & ITES Workers:

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.

   14. Dock Workers:

All Dock workers to get formal recognition, Legal Protection.

Mandatory appointment letters to guarantee social security benefits.

Provident fund, pension, and insurance benefits ensured for all, whether contract or temporary dock workers.

Employer-funded annual health check-ups mandatory.

Dock workers to get mandatory medical facilities, first aid, sanitary and washing areas, etc., to ensure decent work conditions and safety.

   15. Export Sector Workers:

Export sector fixed term workers to receive gratuity, provident fund (PF), and other social security benefits.

Every worker to have the option of availing annual leaves after 180 days of work in a year.

Every worker to get right to timely wage payment and no unauthorized wage deductions and no wage ceiling restrictions.

● Women allowed to work in night shifts with consent, ensuring opportunity to earn higher income.

● Safety and welfare measures include mandatory written consent, double wages for overtime, safe transportation, CCTV surveillance, and security arrangements.

What are the 4 new Labour Codes?

The four new labor codes in India are the Code on Wages, 2019; the Industrial Relations Code, 2020; the Occupational Safety, Health and Working Conditions Code, 2020; and the Code on Social Security, 2020. These codes consolidate and replace 29 existing central labor laws to simplify and modernize labor regulations.

Is above 21,000 salary eligible for bonus in India?

No, a monthly salary of above ₹21,000 is generally not eligible for the statutory bonus in India. However, employees earning more than this amount may still receive a performance or discretionary bonus if it is offered by their employer.

What is the Labor Code 2025 in India?

India is entering a new era of work culture with the introduction of the New Labour Code 2025. Designed to modernize and simplify existing labor laws, this reform aims to improve employee well-being, provide salary transparency, and give companies more flexibility.

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