In a bid to transform the labour landscape of India, the Government of India has formally rolled out the implementation of the four Labour Codes: the Code on Wages, 2019; Industrial Relations Code, 2020; Social Security Code, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020. The Codes became effective from November 21, 2025, replacing 29 outdated labour laws and bringing about a simpler, more transparent, and globally aligned labour governance system.
For decades, India worked in a fragmented legislative environment established during the 1930s-1950s, which did not align with the requirements of a modern economy. The new Labour Codes fill this gap by balancing workers' welfare and industry growth, leading to a harmonious ecosystem that promotes a robust, skilled, and future-ready workforce.
The new laws mean some big benefits for workers. They include universal minimum wages, gratuity benefits, social security coverage, provisions for women to do night shifts, subject to their consent and required safety measures, recognition of gig economy workers, a formal appointment letter requirement, etc.
For decades, India worked in a fragmented legislative environment established during the 1930s-1950s, which did not align with the requirements of a modern economy. The new Labour Codes fill this gap by balancing workers' welfare and industry growth, leading to a harmonious ecosystem that promotes a robust, skilled, and future-ready workforce.
The new laws mean some big benefits for workers. They include universal minimum wages, gratuity benefits, social security coverage, provisions for women to do night shifts, subject to their consent and required safety measures, recognition of gig economy workers, a formal appointment letter requirement, etc.
The most significant changes include issuing appointment letters mandatorily to all workers, which guarantees clarity in employment and job security. Minimum wages, hitherto applied to certain industries only, will henceforth apply to every worker, while employers are required by law to ensure timely salary payments. Workers above 40 years will get free annual health check-ups, thus promoting early healthcare with reduced risks.
Social security has taken a big leap forward. Under the Code on Social Security, all workers, including gig and platform workers, like drivers and delivery partners, get PF, ESIC, insurance, and all other welfare benefits. New avenues have opened for women workers by permitting work on night shifts in all industries with predetermined safety measures and a strict prohibition on gender-based discrimination.
The Codes uplift millions across various industries. Fixed employees will now enjoy benefits equal to permanent staff, including gratuity after just one year.
Plantation workers are now brought under the OSHWC Code and the Social Security Code. Labour Codes apply to plantations with more than 10 workers or 5 or more hectares. Workers receive safety training, medical facilities, and education support. IT and ITES employees are guaranteed salary release by the 7th of every month, while textile and beedi workers gain assured minimum wages and double overtime.
Migrants and young workers benefit through portability of social security and guaranteed wages in line with the National Floor Wage, so that a decent living standard across states is guaranteed.
A major change has been announced to the gratuity rules, reducing the eligibility period from 5 years to 1 year. This change, which affects millions of employees, aims to strengthen welfare measures for workers and bring more clarity to gratuity payments across sectors.
Fixed-term employees, who are hired for a specific period or project, will now be eligible for gratuity after completing just 1 year of service. This change will provide them with stronger financial stability, particularly during job transitions.
Also, gratuity will be calculated on a higher base, benefiting employees. Employers must pay gratuity within 30 days, failing which a 10% annual interest will be imposed.
Further, by reducing compliance burdens through single registrations and licences and embedding transparency and safety, the Labour Codes reinforce India’s commitment to a pro-worker, pro-women, and pro-youth environment. The comprehensive reform empowers not only India’s labour force but also its resilient industries on the path to a more competitive and self-reliant nation.