As part of a major reform of labor laws, the government on Friday officially announced all four labor codes, introducing major changes including universal social security for gig workers, mandatory appointment lists for all employees and statutory minimum wages with on-time payments across sectors.
The four codes – the Wages Code (2019), the Labor Relations Code (2020), the Social Security Code (2020) and the Safety, Health and Working Conditions Code (2020) – came into force on Friday, replacing 29 scattered laws with a single modernized framework.
Here is what PM Modi said
These codes, Prime Minister Narendra Modi said in a series of social media posts on X: “They will serve as a solid foundation for universal social security, minimum and timely payment of wages, safe workplaces and remunerative opportunities for our people, especially Nari Shakti and Yuva Shakti…
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“It will build a future-ready ecosystem that protects workers’ rights and boosts India’s economic growth. These reforms will boost job creation, boost productivity and accelerate our journey to Viksit Bharat.”
Modi went on to say that “This is one of the most comprehensive and progressive labor reforms since independence. It significantly empowers our workers. It also significantly simplifies compliance and promotes ‘Ease of Doing Business’.”
It will build a future-proof ecosystem that will protect workers’ rights and boost India’s economic growth. These reforms will boost job creation, boost productivity and accelerate our journey towards Viksit Bharat, the Prime Minister added.
According to Labor Minister Mansukh Mandaviya, labor codes will formalize employment, strengthen worker protection and make the work ecosystem simpler, safer and globally aligned.
Other systemic reforms include a national minimum wage, a gender-neutral labor policy, an Inspector-cum-Facilitator model to support compliance, faster dispute resolution through two-judge tribunals, and a National Occupational Safety and Health (OSH) Council to harmonize safety standards.
The government will now launch a consultation to draw up detailed rules and schemes.
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During the transition, the provisions of the existing labor laws will remain applicable whenever necessary.
Social Security coverage expanded from 19 percent in 2015 to more than 64 percent in 2025. Enforcing labor laws represents another transformative step—expanding worker protections, facilitating business operations, and fostering a pro-worker labor ecosystem.
According to a Labor Ministry statement, the codes are the foundation for Aatmanirbhar Bharat.
Indian labor laws were created in the pre-independence and early post-independence era (1930s–1950s), when the economy and the world of work were fundamentally different.
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Labor Minister Mandaviya said the codes will guarantee minimum wages for all workers, appointment letters for youth, equal pay and respect for women, social security for 40 million workers, gratuity for fixed-term workers after one year of employment, free annual health check-ups for workers above 40 years, double overtime wages, 100% health insurance for workers in hazardous sectors and social security for workers in hazardous sectors.
“These reforms are not just ordinary changes but a significant step taken by Prime Minister Shri Narendra Modi for the welfare of the workforce. These new labor reforms are an important step towards an independent India and will give a new impetus to the goal of a developed India by 2047,” he said at X.
Under the 2020 Social Security Code, all workers, including gig and platform workers, will be covered by social security. All workers will get PF, ESIC, insurance and other social security benefits.
Under the Wage Code 2019, all workers will receive the statutory minimum wage. Minimum wage and timely payment ensure financial security.
ESIC coverage and benefits are extended across India – voluntary for businesses with less than 10 employees and mandatory for businesses where even one employee is involved in hazardous processes.
Temporary employees (FTE) will now receive all the same benefits as permanent employees, including vacation, health care and social security.
For the first time, the Labor Code defines terms such as “concert work”, “platform work” and “aggregators”.
Aadhaar-linked Universal Account Numbers will facilitate access to social benefits, be fully portable and available across states, including for migrant workers.
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Plantation workers will now be subject to both the Occupational Safety, Health and Working Conditions (OSHWC) Act and the Social Security Act.
Digital and audiovisual professionals – including electronic media journalists, dubbing artists and stuntmen – will also be entitled to full statutory benefits.
