In a landmark reform aimed at strengthening worker welfare, the Central Government has rolled out four comprehensive Labour Codes that significantly expand social security coverage for unorganised workers, gig workers, platform workers, and employees across sectors. These reforms came into force nationwide on 21 November 2025, replacing 29 existing Central Labour Acts with a simplified, technology-driven legal framework.
The four Labour Codes include:
Code on Wages, 2019
Industrial Relations Code, 2020
Code on Social Security, 2020
Occupational Safety, Health and Working Conditions (OSH & WC) Code, 2020
Together, these Codes aim to reduce regulatory complexity, improve transparency and accountability, and ensure universal access to social security benefits—especially for workers in the unorganised sector.
Code on Wages, 2019: Ensuring Fair Pay and Gender Equality
The Code on Wages, 2019 introduces structural reforms to guarantee fair and timely wages for all employees:
Universal minimum wages extended to all employments, replacing the earlier “scheduled employment” system.
Introduction of a statutory floor wage, to be notified by the Central Government, below which minimum wages cannot be fixed.
Strong provisions for gender neutrality, prohibiting discrimination in recruitment and wage payments, including protection for transgender persons.
Mandatory timely payment of wages across all sectors.
Inclusion of allowances exceeding 50% of wages as part of wage calculations, enhancing benefits related to maternity leave, gratuity, EPF, and EPS
contributions.
Social Security Code, 2020: A Major Boost for Unorganised Workers
The Code on Social Security, 2020 introduces one of the most inclusive social security frameworks in India’s labour history. Key highlights include:
Universal social security coverage for all workers, including unorganised workers, gig workers, and platform workers.
Introduction of new legal definitions for aggregators, gig workers, and platform workers, recognising emerging forms of employment.
Pan-India expansion of ESIC coverage, replacing the earlier system limited to notified districts or areas.
Voluntary ESIC coverage for establishments with fewer than 10 employees.
Mandatory ESIC coverage for hazardous establishments, even if they employ just one worker.
Universal applicability of EPFO to all establishments employing 20 or more workers.
Additionally, Section 45 of the Code empowers the Central Government to notify dedicated social security schemes for unorganised, gig, and platform workers, including benefits under the Employees’ State Insurance (ESI) framework for workers and their families.
SH & WC Code, 2020: Health, Safety and Migrant Worker Protection
The Occupational Safety, Health and Working Conditions Code, 2020 focuses on improving workplace safety and worker well-being:
Employers are required to provide free annual health check-ups for employees above a specified age.
The definition of Inter-State Migrant Workers has been expanded to include:
Workers employed through contractors
Self-migrated workers
Eligible migrant workers are entitled to:
Annual lump-sum travel allowance
Portability of social security benefits across states
A Transformational Step for India’s Workforce
With pan-India ESIC coverage, expanded EPFO applicability, statutory minimum wages, and formal recognition of gig and platform workers, the new Labour Codes mark a decisive shift toward inclusive growth. These reforms are expected to significantly improve income security, healthcare access, and workplace safety for millions of unorganised workers who form the backbone of India’s economy.
By leveraging technology, simplifying compliance, and strengthening enforcement, the Labour Codes lay the foundation for a more equitable, transparent, and future-ready labour ecosystem in India.
