'Better Wages, Safety, Social Security': New Labour Code Notified — Here's What Changes

The Government of India has announced the implementation of four labour codes to simplify and streamline existing labour laws, according to an official release issued on Friday.

The four codes that came into effect include — 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 labour codes will ensure "better wages, safety, social security and enhanced welfare for India’s workforce," the release stated.

The provisions covered under these codes include mandatory appointment letters, which will ensure transparency, job security, and fixed employment, and provident fund ESIC, insurance, and other social security benefits to all workers.

They also cover statutory right minimum wage payment and free annual health check-up for workers above the age of 40 years.

Timely payment of wages, permission for women employees to work night shifts in all types of work across all establishments, subject to their consent and required safety measures, along with Pan-India ESIC coverage and benefits are also among the provisions of the codes.

Moreover, the compliance burden of workers has been reduced since they will no longer have to do multiple registrations, licenses and returns across various labour laws because of single registration, single license and single return facilitated across India.

The aforementioned codes have industry-specific benefits for workers such as MSME workers, beedi and cigar workers, plantation workers, mine workers, hazardous industry workers, among many others.

Benefits have also been extended to type of workers like fixed-term employees, gig and platform workers, contract workers, women workers, and youth workers.

The director general of Confederation of Indian Industry (CII), Chandrajit Banerjee commented on the labour code and said, "By consolidating 29 diverse laws, these Codes ensure better wages, stronger social security, enhanced workplace safety and a more predictable regulatory environment for both workers and industry."

He added that these codes will bring India in line with global standards, ease compliance, empower enterprises, and strengthen the foundations for higher productivity.

Beyond the major welfare initiatives already highlighted, the Labour Codes introduce several further reforms that strengthen worker protection and simplify compliance for employers:

• National Floor Wage to ensure no worker receives a wage below the minimum living standard.

• Gender-neutral pay and job opportunities, explicitly prohibiting discrimination—including against transgender persons.

• Inspector-cum-Facilitator system, shifting enforcement towards guidance, awareness and compliance support rather than punitive action.

• Faster and predictable dispute resolution, with two-member Industrial Tribunals and the option to approach tribunals directly after conciliation.

• Single registration, single licence and single return across safety and working-conditions requirements, replacing multiple overlapping filings.

• National OSH Board to set harmonised safety and health standards across sectors.

• Mandatory safety committees in establishments with 500+ workers, improving workplace accountability.

• Higher factory applicability limits, easing regulatory burden for small units while retaining full safeguards for workers.