new labour codes for 2 January 2026

The New Labour Codes 2025 represent a historic transformation in India’s labour governance framework, consolidating 29 outdated and fragmented labour laws into four new labour codes: the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the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 which are modern, progressive and worker-centric Codes. These reforms significantly improve wage protection, workplace safety, social security access, and ease of compliance for industries. With their implementation starting 21 November 2025, India’s labour ecosystem now reflects global standards and supports the vision of a future-ready workforce and a resilient, competitive economy.

Together, the Codes lay the foundation for Aatmanirbhar Bharat, ensuring that workers, especially women, youth, gig, migrant, and unorganised workers, receive stronger rights and welfare protection.

What Are the Four New Labour Codes?

The Four New Labour Codes, notified by the Government, streamline decades-old laws into a simpler, efficient structure designed for modern economies.

Four New Labour Codes
Labour Code	Key Focus Area	Major Benefit
Code on Wages, 2019	Wages, minimum wages, payment of wages	Ensures statutory minimum wages for all workers
Industrial Relations Code, 2020	Hiring, firing, dispute resolution, unions	Faster dispute resolution, flexibility in employment
Code on Social Security, 2020	PF, ESIC, maternity, gig workers, unorganised workers	Universal social security coverage
Occupational Safety, Health, and Working Conditions Code, 2020	Occupational safety, health, working conditions	Safer workplaces across all industries

New Labour Codes PDF

The New Labour Codes consolidate 29 existing labour laws into 4 comprehensive codes to simplify and modernise India’s labour regulations. These codes aim to improve the ease of doing business, ensure better social security, and strengthen workers’ rights in a unified framework. The link to download the New Labour Codes has been shared below.

New Labour Codes PDF Download

Why India Needed the New Labour Codes

For decades, India operated under labour laws designed during the 1930s-1950s, a period when the nature of employment, technology and work structures were drastically different. Many provisions became outdated and ineffective for today’s gig economy, digital workforce, MSMEs, and large-scale industries. The Codes solve this by modernising regulations, improving legal clarity, and providing equitable protection across all forms of employment.

Reasons for Reform

• The old laws were fragmented across 29 Acts with inconsistent definitions and processes.
• New forms of work, gig, platform, and contractual work need legal recognition.
• Labour dispute resolution was slow and unpredictable.
• Social security coverage was extremely limited, excluding gig and informal workers.
• Women’s participation in night shifts and high-paying sectors was restricted by outdated norms.

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Changes Under New Labour Codes

The transition highlights how the New Labour Codes bring India closer to global labour practices. Workers benefit through formalisation, financial stability and access to social protection, while businesses enjoy simplified compliance and operational flexibility. The Codes strike a balance between worker welfare and industry growth, ensuring that reforms support both productivity and protection.

Changes Under New Labour Codes
Area	Pre-Labour Codes	Post-Labour Codes (2025)
Formalisation	No mandatory appointment letter	Mandatory appointment letters for all
Social Security	Limited coverage	Universal PF, ESIC, insurance for all workers
Minimum Wages	Only for scheduled employments	Statutory minimum wage for every worker
Healthcare	No annual check-up requirement	Free annual health check-up for workers 40+
Timely Wages	No strict enforcement	Mandatory timely wage payment
Women’s Employment	Restrictions in night shifts	Women allowed in all jobs with safety measures
ESIC Coverage	Only notified areas	PAN-India ESIC coverage, including small units
Compliance	Multiple returns and licences	Single registration, single licence, single return

New Labour Codes Benefits

1. Fixed-Term Employees (FTE): FTEs get equal pay, benefits and gratuity after one year, reducing excessive contractual hiring.
2. Gig & Platform Workers: Gig workers receive legal recognition, aggregator-funded welfare, and fully portable Aadhaar-linked benefits.
3. Contract Workers: Contract workers get equal benefits as permanent staff with gratuity after one year and free annual health check-ups.
4. Women Workers: Women get equal pay, legal protection, night-shift options with safety and mandatory committee representation.
5. Youth Workers: Youth receive guaranteed minimum wages, formal appointment letters and mandatory paid leave protection.
6. MSME Workers: MSME employees gain social security coverage, standard working hours and assured timely wage payment.
7. Beedi & Cigar Workers: Workers get minimum wages, capped working hours and double overtime rates with bonus eligibility.
8. Plantation Workers: Plantation workers receive safety training, protective gear and full ESI coverage for families.
9. Audio-Visual & Digital Media Workers: AV and digital media workers get appointment letters, timely wages and double overtime pay.
10. Mine Workers: Mine workers receive accident-related coverage, free health check-ups and regulated 8–12 hour work shifts.
11. Hazardous Industry Workers: Hazardous industry workers get annual health check-ups, national safety standards and gender-inclusive job access.
12. Textile Workers: Textile workers get equal wages, migrant benefits, longer claim periods and double overtime rates.
13. IT & ITES Workers: IT workers are assured salary by the 7th, anti-harassment protections and mandatory social

security coverage.

14. Dock Workers: Dock workers receive legal recognition, PF/pension/insurance benefits and employer-funded health check-ups.
15. Export Sector Workers: Export workers get gratuity, timely wages, annual leave after 180 days and safe, consent-based night-shift options.

Impact of New Labour Codes on India’s Labour Landscape

India has rapidly expanded social security coverage from 19% in 2015 to 64% in 2025, and the New Labour Codes accelerate this trajectory by making benefits portable, inclusive and technology-driven. They empower workers while easing compliance for industries, creating a balanced and future-ready labour ecosystem that aligns with global standards.

• Formalisation of the workforce
• Expanded ESIC and PF coverage
• Increased women’s participation
• Better safety and health standards
• Boost to employment and industry growth