Labour Codes 2025: Historic Announcement 4 Labour Codes To Be Effective From 21 November 2025 Massive Changes In Workers Salary And Safety
Labour Codes 2025: In a historic decision, the Government of India has announced that the four new Labour Codes will come into effect from 21st November 2025. The four codes – the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020—will replace and rationalize 29 existing labour laws. This landmark move aims to modernize labour regulations, enhance worker welfare, and align India’s labour ecosystem with global standards, driving the vision of an ‘Aatmanirbhar Bharat’.
Pre vs Post Labour Reforms: Key Changes
Many of India’s labour laws were outdated, dating back to the pre-independence era. The new codes address these gaps by simplifying complex laws. A comparison of the ecosystem before and after the implementation is as follows:
| Parameter | Pre Labour Reforms | Post Labour Reforms |
|---|---|---|
| Formalisation of Employment | No mandatory appointment letters. | Mandatory appointment letters for all workers, ensuring transparency and job security. |
| Social Security Coverage | Limited coverage. | All workers, including Gig & Platform workers, will get social security, PF, and ESIC benefits. |
| Minimum Wages | Applied only to scheduled industries. | All workers now have a statutory right to minimum wage payment. |
| Preventive Healthcare | No legal requirement for free check-ups. | Employers must provide a free annual health check-up to all workers above the age of 40. |
| Timely Wages | No mandatory compliance enforced strictly. | It is now mandatory for employers to provide timely wages, boosting worker morale. |
| Women Workforce | Restricted from night shifts and certain jobs. | Women are permitted to work at night and in all types of work (including mining) with their consent and safety measures. |
Benefits Across Key Sectors
The implementation of these codes brings specific benefits to various sections of the workforce:
1. Fixed-Term Employees (FTE)
- FTEs will receive all benefits equal to permanent workers, including leave and medical facilities.
- Eligibility for Gratuity is now just one year of service, instead of the earlier five-year requirement.
- They will be entitled to equal wages as permanent staff.
2. Gig & Platform Workers
- Terms like ‘Gig work’ and ‘Platform work’ have been defined for the first time in Indian law.
- Aggregators must contribute 1–2% of their annual turnover (capped at 5% of payable amount) towards the social security of these workers.
- An Aadhaar-linked Universal Account Number (UAN) will ensure benefits are portable across states.
3. Women Workers
- Gender discrimination is legally prohibited, ensuring equal pay for equal work.
- Mandatory representation of women in grievance redressal committees.
- Women can now include parents-in-law in their family definition for dependent coverage.
4. Other Key Beneficiaries
- MSME Workers: Guaranteed minimum wages and coverage under the Social Security Code based on employee count.
- Beedi & Cigar Workers: Working hours capped at 48 hours per week, with double wages for overtime.
- Audio-Visual & Media: Journalists, dubbing artists, and stunt persons will receive mandatory appointment letters and timely wages.
- Plantation Workers: Full ESI medical facilities for workers and their families; codes apply to plantations with more than 10 workers.
This reform also significantly reduces the compliance burden for industries by introducing a single registration, single license, and single return system across Pan-India, fostering a conducive environment for business and employment generation.
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