India’s New Social Security Laws: Labour Codes
November 21, 2025
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The Government of India has unveiled a historic transformation in the country’s labour landscape with the implementation of four consolidated Labour Codes, effective from 21st November 2025. This landmark move rationalizes and replaces 29 fragmented and outdated Central labour laws, laying the foundation for a protected, future-ready workforce and a resilient, competitive economy.
What Are the Four Labour Codes?
The four new Labour Codes are:
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Code on Wages, 2019
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Industrial Relations Code, 2020
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Code on Social Security, 2020
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Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020
Together, these codes modernize India’s regulatory framework, aligning with global standards and the evolving world of work, while simplifying compliance for businesses.
Key Changes and Benefits
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Universal Social Security: For the first time, all workers—including gig, platform, contract, and migrant workers—are entitled to social security coverage like PF, ESIC, insurance, and gratuity.
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Minimum Wages for All: Statutory right to a minimum wage extends to every worker, ensuring financial security and uniform standards across sectors.
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Digitization and Portability: Welfare benefits are now Aadhaar-linked, fully portable, and accessible across states, greatly aiding migrant and informal sector workers.
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Simplified Compliance: A single registration, PAN-India license, and consolidated filings streamline processes, lowering the compliance burden for employers, especially MSMEs.
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Women’s Workforce Participation: Women can now work night shifts and in all job roles, with legal protection, equal pay, and extended ESIC coverage nationwide. Gender discrimination is strictly prohibited by law.
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Youth Empowerment and Fixed-Term Employees: Minimum wage and employment letters are mandatory for all workers, and fixed-term employees (FTEs) get benefits at par with permanent staff, including eligibility for gratuity after just one year.
Sector-Specific Highlights
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MSME and Export Sector: All MSME workers receive minimum wages and benefits, with special provisions for timely wage payments and improved workplace amenities. Export sector employees now enjoy mandatory social security and annual leave entitlements.
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Gig and Platform Workers: Gig and platform work are legally defined, with platforms required to contribute to social security. Unique account numbers make it easier for such workers to access their benefits.
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Women and Diverse Workforce: Expanded family definitions, mandatory women’s representation on grievance committees, and explicit protections for transgender workers emphasize inclusivity.
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Health and Safety: Annual free health check-ups, strict national safety standards, and the creation of safety committees are now mandatory for various high-risk and hazardous industries.
Compliance and Enforcement
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Inspector-cum-Facilitator System: Regulatory approach shifts from punitive to guidance and awareness, enabling faster, more predictable dispute resolution.
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Consolidated Returns: One return, license, and registration requirement across all codes greatly eases the paperwork, fostering a business-friendly environment while safeguarding employee rights.
Summary:
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Pre Labour Reforms |
Post Labour Reforms |
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Formalisation of Employment |
No mandatory appointment letters |
Mandatory appointment letters to all workers. Written proof will ensure transparency, job security, and fixed employment. |
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Social Security Coverage |
Limited Social Security Coverage |
Under Code on Social Security, 2020 all workers including gig & platform workers to get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits. |
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Minimum Wages |
Minimum wages applied only to scheduled industries/employments; large sections of workers remained uncovered |
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. |
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Preventive Healthcare |
No legal requirement for employers to provide free annual health check-ups to workers |
Employers must provide all workers above the age of 40 years with a free annual health check-up. Promote timely preventive healthcare culture |
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Timely Wages |
No mandatory compliance for employers payment of wages |
Mandatory for employers to provide timely wages, ensuring financial stability, reducing work stress and boosting overall morale of the workers. |
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Women workforce participation |
Women’s employment in night shifts and certain occupations was restricted |
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. |
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ESIC coverage |
ESIC coverage was limited to notified areas and specific industries; establishments with fewer than 10 employees were generally excluded, and hazardous-process units did not have uniform mandatory ESIC coverage across India |
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. |
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Compliance Burden |
Multiple registrations, licenses and returns across various labour laws. |
Single registration, PAN-India single license and single return. Simplified processes and reduction in Compliance Burden. |