India’s Labour Codes 2025: All you need to know

India’s 2025 labour codes extend social security to gig workers, allow women night shifts, set universal wages, and ease layoffs, sparking union protests

India has ushered in a sweeping transformation of its labour framework with the enforcement of four new labour codes, replacing 29 fragmented laws that had governed the workforce since colonial times. The overhaul is designed to modernise employment practices, expand protections, and bring millions of workers—particularly those in the informal and gig economy—under a unified system.

The four codes include the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020). Together, they aim to simplify compliance while ensuring broader coverage for employees across sectors.

One of the most notable changes is the inclusion of gig and platform workers under social security. With projections of over 23 million such workers by 2030, the codes mandate benefits such as provident fund access, health insurance, and a guaranteed minimum wage tied to a national floor rate. Companies are required to earmark up to 2% of their annual turnover for gig worker welfare, marking a significant step toward formalising this fast‑growing segment.

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Women workers stand to gain new opportunities as the codes permit night shifts across industries, including mining and heavy machinery, provided safety measures and consent are ensured. Equal pay provisions and extended maternity leave of 26 weeks for women in the unorganised sector further strengthen gender equity in the workplace.

Fixed‑term employees also benefit, with eligibility for gratuity reduced to one year of service instead of five. Working hours are capped at eight per day, with overtime requiring consent and double pay, though weekly limits allow flexible 12‑hour shifts.

The introduction of a universal minimum wage is another landmark, extending statutory protection to all workers, compared to just 30% earlier. States may set higher rates but cannot go below the national floor.

However, the reforms are not without controversy. The Industrial Relations Code now permits firms with up to 299 employees to lay off staff without prior government approval, raising concerns among trade unions. Critics argue the changes weaken worker safeguards and tilt the balance in favour of employers.

Despite opposition, the government maintains that the codes will streamline labour laws, attract investment, and create a more inclusive workforce for the future.

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