India gets new labour codes: Minimum wage guarantee, gratuity, social security for 400 mn workers — Full list

India on Friday implemented four major labour codes that guarantee minimum wages, gratuity, and social security for over 400 million workers, in what the government says is a modernization of decades-old labour laws.

In a detailed post on social media platform X (formerly Twitter), Union minister Mansukh Mandaviya wrote: “From today, the new labour codes have been implemented in the country. These reforms are not just ordinary changes, but a major step taken by Prime Minister Narendra Modi for the welfare of the workforce.”

“These new labour reforms are an important step towards a self-reliant India and will give new momentum to the goal of a developed India by 2047,” he added.

India's new labour codes — A snapshot

• A guarantee of timely minimum wages for all workers
• A guarantee of appointment letters for the youth
• A guarantee of equal pay and respect for women
• A guarantee of social security for 400 million workers
• A guarantee of gratuity for fixed-term employees after one year of employment
• A guarantee of free annual health check-ups for workers above 40 years of age
• A guarantee of double wages for overtime
• A guarantee of 100% health security for workers in hazardous sectors
• A guarantee of social justice for workers as per international standards

Codes align labour system with global standards: Govt

In a statement on Friday, the Ministry of Labour and Employment said that the Centre has implemented four new labour codes, effective today, and rationalised 29 exiting labour laws.

The new codes are:

• 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.

The update aims to modernize India's labour laws, which were framed in the pre-Independence and early post-Independence era (1930s-50s), in an economy and world that was “fundamentally different”, the statement added.

Labour Codes updated: Key highlights

• Formalisation of Employment: Mandatory appointment letters to all workers — Written proof will ensure transparency, job security, and fixed employment.
• Social Security Coverage: Under Code on Social Security, 2020 all workers including gig and platform workers to get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits.
• Minimum Wages: Under the Code on Wages, 2019, all workers to receive a statutory right minimum wage payment. Minimum wages and timely payment will ensure financial security.
• Preventive Healthcare: Employers must provide all workers above the age of 40 years with a free annual health check-up. Promote timely preventive healthcare culture.
• Timely Wages: Mandatory for employers to provide timely wages, ensuring financial stability, reducing work stress and boosting overall morale of the workers.
• Women workforce participation: Women are permitted to work at night and in all types of work across all establishments, subject to their consent and required safety measures. Women will get equal opportunities to earn higher incomes – in high paying job roles.
• ESIC coverage: ESIC coverage and benefits are extended Pan-India — voluntary for establishments with fewer than 10 employees, and mandatory for establishments with even one employee engaged in hazardous processes. Social protection coverage will be expanded to all workers.
• Compliance Burden: Single registration, pan-India single license and single return. Simplified processes and reduction in Compliance Burden. 
• A National OSH Board will be set up to harmonise safety and health standards across sectors. 
• Safety committees will be made mandatory in establishments with more than 500 workers, improving workplace accountability. 
• Higher factory applicability limits will ease regulatory burden for small units while retaining full safeguards for workers.

What are the benefits of these labour reforms for each worker category?

1. Fixed-Term Employees (FTE)

• FTEs to receive all benefits equal to permanent workers, including leave, medical, and social security.
• Gratuity eligibility after just one year, instead of five.
• Equal wages as permanent staff, increasing income and protection.
• Promotes direct hiring and reduces excessive contractualisation.

2. Gig & Platform Workers:

• ‘Gig work’, ‘Platform work’, and ‘Aggregators’ have been defined for the first time.
• Aggregators must contribute 1–2% of the annual turnover, capped at 5% of the amount paid/payable to gig and platform workers.
• Aadhaar-linked Universal Account Number will make welfare benefits easy to access, fully portable, and available across states, regardless of migration.

3. Contract Workers:

• Contract workers will increase employability and ensure social security, legal protection like benefits equal to permanent employees.
• They will become eligible for gratuity after one year of continuous service.
• Principal employer will provide health benefits and social security benefits to contract workers.
• Workers to get free annual health check-up.

4. Women Workers:

• Gender discrimination legally prohibited.
• Equal pay for equal work ensured.
• Women are permitted to work night shifts and in all types of work (including underground mining and heavy machinery), subject to their consent and mandatory safety measures.
• Mandatory women’s representation in grievance redressal committees
• Provision to add parents-in-law in Family Definition of Female employees, expanding dependent coverage and ensuring inclusivity.

5. Youth Workers:

• Minimum wage is guaranteed for all workers.
• All workers to get appointment letters, - promoting social security, employment history and formal employment.
• Worker exploitation by employers is prohibited—payment of wages during leave has been made mandatory.
• To ensure a decent standard of living, workers will receive wages as per the floor wage determined by the Central Government.

6. MSME Workers:

• All MSME workers covered under the Social Security Code, 2020, eligibility based on employee count.
• Minimum wage guaranteed for all workers.
• Workers will have access to facilities such as canteens, drinking water, and rest areas.
• Provisions for standard working hours, double overtime wages, and paid leave.
• Timely wage payment ensured.

7. Beedi & Cigar Workers:

• Minimum wages guaranteed for all.
• Working hours capped at 8 -12 hours per day, 48 hours per week has been capped.
• Overtime Work beyond prescribed hours, to be consent based and pay at least double the normal wage rate.
• Timely payment of wages ensured.
• Workers eligible for Bonus after completing 30 days of work in a year.

8. Plantation Workers:

• 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.
• Mandatory safety training on handling, storing, and using chemicals.
• Protective equipment mandatory to prevent accidents and chemical exposure.
• Workers and their families to get full ESI medical facilities; Education facilities for their children are also guaranteed.

9. Audio-Visual & Digital Media Workers:

• Digital and audio-visual workers, including journalists in electronic media, dubbing artists, and stunt persons will now receive full benefits.
• Mandatory appointment letter for all workers — clearly stating their designation, wages, and social security entitlements.
• Timely payment of wages ensured.
• Overtime Work beyond prescribed hours, to be consent based and pay at least double the normal wage rate.

10. Mine Workers:

• The Social Security Code treats certain commuting accidents as employment-related, subject to conditions of time, and place of employment.
• Central Government notified standards to standardize workplace occupational safety and health conditions.
• Health safety for all workers will be ensured. Free annual health check-up will be provided.
• Limit on working hours set to 8 to 12 hours per day, 48 hours per week to ensure health and work-life balance.

11. Hazardous Industry Workers:

• All workers will receive free annual health check-ups.
• Central Government will frame national standards for better safety of workers.
• Women can work in all establishments, including underground mining, heavy machinery, and hazardous jobs, ensuring equal job opportunities for all.
• Mandatory safety committee at each site for on-site safety monitoring, and safe handling of hazardous chemicals ensured.

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.