India’s most ambitious labour reform in past many decades is live now. Effective 21 November 2025, the four new Labour Codes have replaced 29 old central labour laws with a single, modern, digital-first framework. The goal is to ensure simpler compliance, stronger worker protection, formalisation of the gig economy, and greater ease of doing business.
This comprehensive guide explains everything you need to know in 2025, from key features and benefits to a detailed old vs new comparison.
What Are the Four Labour Codes (Now in Force)?
The Government of India has consolidated 29 different labour laws into:
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020
As of 21 November 2025, all four codes and their central rules are fully effective nationwide (states have 45 days to align their rules).
1. Code on Wages, 2019: One Nation, One Wage Framework
Creates uniform and fair wage rules for organised and unorganised workers alike.
Key Highlights (2025)
- Universal minimum wages across all sectors
- National floor wage set by Centre – states cannot go below this
- Wages classified by skill level, geographical zone, and nature of work
- Completely gender-neutral provisions
- Single unified definition of “wages” to reduce disputes
Floor Wage vs Minimum Wage
- Floor Wage → Fixed by Central Government (national baseline)
- Minimum Wage → Fixed by State Governments but must be ≥ floor wage
2. Industrial Relations Code, 2020: Modernising Employer-Employee Relations
Merges three historic laws: Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946, and Industrial Disputes Act 1947.
Major Changes in 2025
- Trade union recognition only if it has 51% or more worker support
- Fixed-Term Employment (FTE) legal with full gratuity & benefits
- Layoff/retrenchment/closure threshold increased from 100 to 300 workers (prior government approval needed only above 300)
- Mandatory standing orders for all establishments
- Faster digital conciliation and tribunals
- Re-skilling Fund: Retrenched workers get 15 days’ average pay per completed year
- Negotiating councils in workplaces without a recognised union
3. Code on Social Security, 2020: Universal Safety Net Including Gig & Platform Workers
The biggest expansion of social security in India’s history – now covering gig, platform, and unorganised workers.
Key Features Live in 2025
- ESIC & EPFO coverage extended to every district in India
- Mandatory digital registration (Aadhaar-based) via e-Shram portal
- EPFO inspection/inquiries limited to last 5 years only
- Provident fund, health insurance, disability, maternity, and gratuity benefits now portable
- Formal definitions introduced for Gig Workers and Platform Workers
4. OSHWC Code, 2020: Safety & Dignity at Every Workplace
Consolidates 13 old laws on safety, health, and working conditions.
Important Rules Effective 2025
- Women can work all shifts (including night) with consent, safety, and transport
- Journalists, sales promotion, and cine workers now formally covered
- National Database of Unorganised Workers (via e-Shram)
- Mandatory safety committees in establishments with 500+ workers
- Standard working hours: 8 hours/day, 48 hours/week (overtime payable at 2× rate)
Old Labour Laws vs. New Labour Codes (Comparison Table)
| Category | Earlier System (29 Laws) | New System (4 Codes) |
| No. of Laws | 29 fragmented laws | 4 consolidated codes |
| Total Rules | 1436 | 480 |
| Compliance Filings | 935 | 275 |
| Registration | Multiple | Single registration |
| Licenses | Multiple | Single license |
| Returns | Multiple | Single return |
| Wage Structure | Complex | Uniform definitions + floor wage |
| Trade Union Recognition | No fixed rule | 51% membership rule |
| Layoff Threshold | 100 workers | 300 workers |
| Social Security | Mostly organized | Organized + unorganized + gig/platform |
| Digitalization | Limited | Mandatory digital compliance |
| Women in Night Shifts | Restricted | Allowed with safety measures |
Policy Brief: Why The New Labour Codes Matter
India’s four new Labour Codes strike a balance between worker welfare and economic growth. By simplifying laws, digitalizing compliance, and expanding coverage to gig workers, the reforms address modern workforce needs.
For Workers → Guaranteed minimum wages, portable social security, safer workplaces, and formal recognition of gig/platform work.
For Employers & Startups → Single-window compliance, huge reduction in paperwork, flexibility in hiring (FTE), and predictable industrial relations.
For the Economy → Formalisation of 90%+ unorganised workforce, better labour mobility, stronger global competitiveness, and data-driven policymaking.
FAQs About India’s New Labour Codes (2025)
1. What are the four Labour Codes introduced by the Government of India?
The four Labour Codes are the Code on Wages, Industrial Relations Code, Social Security Code, and the OSHWC Code. Together, they consolidate 29 older labour laws into a simplified, unified structure.
2. Why were India’s Labour Codes introduced?
They were introduced to simplify labour regulations, reduce compliance burdens, improve ease of doing business, and ensure stronger, uniform protection for workers across sectors.
3. What is the difference between a floor wage and a minimum wage?
A floor wage is the national minimum wage set by the Centre; a minimum wage is fixed by states. States cannot set their minimum wages below the national floor wage.
4. How do the Labour Codes benefit workers?
Workers get universal minimum wages, broader social security, safer work environments, digital records, and new protections for gig, platform, and unorganized workers.
5. How do the Labour Codes benefit employers?
Employers gain from single registration, single return, single license, uniform wage definitions, reduced paperwork, and flexibility in hiring and operations.
6. Are gig and platform workers covered under the new Labour Codes?
Yes. The Social Security Code, 2020 extends social security coverage to gig and platform workers, allowing digital registration and access to benefit schemes.
7. Can women work night shifts under the new Labour Codes?
Yes. Women can work in all shifts, including nights, under the OSHWC Code, provided safety, transportation, and consent conditions are met.
8. What are the new working hour rules under the Labour Codes?
The maximum working hours are 8 hours per day and 48 hours per week, with regulated overtime provisions.
9. What is the new layoff threshold under the Industrial Relations Code?
The threshold for layoff, retrenchment, and closure has been increased from 100 to 300 workers, giving industries more operational flexibility.
10. Do the Labour Codes require digital compliance?
Yes. The Codes encourage full digitalization, including online filings, electronic registers, and digital dispute-resolution platforms.
11. How do the new Labour Codes simplify compliance?
They reduce multiple filings and registrations to a single registration, single license, and single return, lowering administrative and financial burdens.
12. Has the number of labour rules been reduced after the new Labour Codes?
Yes. The total number of rules has reduced from 1436 to 480, making India’s labour ecosystem far more navigable.
13. When will the Labour Codes be fully implemented across India?
The Codes will be enforced once all states notify their corresponding rules. Implementation will begin once both central and state rules are aligned.
14. Who benefits most from the Labour Codes?
Both sides benefit:
- Workers: more rights, protections, and social security
- Employers: simplified compliance and operational flexibility
15. What is the National Database for Unorganized Workers (NDUW)?
The NDUW is a digital registry for unorganized, gig, migrant, and platform workers to ensure they receive government welfare schemes and social security benefits.
Final Takeaway
India’s Labour Codes 2025 mark a turning point: simpler laws, stronger protections, and a future-ready framework that embraces the gig economy. With full implementation now underway, both workers and businesses are set to gain from greater transparency, portability of benefits, and dramatically reduced compliance burden.
For more details, please refer:
PIB Press Release dated 21/11/2025: Government Makes the Four Labour Codes effective to Simplify and Streamline Labour Laws