Labour Code 2025 has officially come into effect from 21 November 2025, marking one of the most powerful and historic labour law reforms introduced under Modi 3.0. The Government of India has rolled out the Four Labour Codes, merging 29 outdated labour laws into a unified and modern framework aimed at transforming the lives of workers and supporting India’s economic growth. The overhaul promises universal minimum wages, timely salary payments, expanded social security, equal pay provisions and improved workplace safety, while simultaneously simplifying compliance for industries across the country.
The four codes include the Code on Wages, Code on Social Security, Industrial Relations Code and the Occupational Safety Health and Working Conditions Code. This consolidated reform is designed to cover over 64 percent of the workforce, a dramatic rise from about 19 percent a decade earlier, giving millions of workers legal protections they never had before.
Prime Minister Narendra Modi called the implementation a historic milestone for worker dignity, fair opportunities and job creation, emphasizing that these reforms will build a stronger and more inclusive labour market capable of supporting India’s vision of Viksit Bharat.
What Labour Code 2025 Means For Workers
The Code on Wages ensures minimum wage protection for all workers across India without discrimination. This guarantees that every employee, whether skilled or unskilled, in rural or urban sectors, receives a legally defined wage. It also mandates timely payment of wages, addressing long standing issues faced by contract and informal workers who previously suffered chronic delays.
The Code on Social Security recognises gig workers and platform workers such as Uber drivers, Ola drivers, Swiggy, Zomato and delivery partners, making them eligible for insurance, pension and accident benefits. Aggregator platforms must now contribute a percentage of their revenue to a national social security fund, expanding the safety net for workers in the digital economy.
Free mobility across states and companies is supported through an Aadhaar linked Universal Account Number that keeps benefits attached to the worker rather than to an employer.
Women’s Empowerment And Equal Pay
Labour Code 2025 introduces progressive policies designed to improve women’s workforce participation. Women can now work night shifts in all sectors including manufacturing and mining, subject to written consent and strict safety measures such as secure transport and workplace surveillance.
The codes strongly reinforce equal pay for equal work, prohibit discrimination based on gender or transgender identity, and expand workplace facilities such as creche support and medical benefits. These provisions aim to increase women’s employment across high growth industries.
Working Hours, Overtime And Health Benefits
Under the new framework, weekly working hours are capped at 48 hours, with daily shifts ranging between 8 and 12 hours depending on industry requirements. Overtime must be compensated at double wage rates, offering stronger protection for workers in manufacturing, construction and mining.
Workers aged over 40 years will now receive free annual health check ups, particularly in hazardous work environments. Organisations must provide safety equipment, accident reporting systems and modern welfare facilities to meet national standards.
Ease Of Doing Business And Industry Reform
For businesses, Labour Code 2025 moves toward a simplified compliance model with one registration, one licence and one annual return, supported by digital filings and reduced physical inspections. Officials say this model aims to reduce corruption, enable transparency and support foreign investment.
However, labour unions have expressed concern about changes in the Industrial Relations Code, which increases the threshold for government approval of layoffs from 100 workers to 300 workers. Unions argue that this could lead to easier hire and fire practices and weaken job security and collective bargaining power.
Economists counter that while short term disruption is expected, long term outcomes such as increased formalisation, higher productivity and better salaries will support both economic growth and worker welfare.
A Turning Point For India’s Workforce
The Government has positioned the Labour Code 2025 reforms as a transformative milestone for modernizing India’s labour landscape, improving global competitiveness and ensuring fairness, dignity and safety for millions of Indian workers. The success of these reforms will depend on state level rulemaking, technology rollout and cooperation among employers and trade unions.
From 21 November 2025, every worker whether in a factory, corporate office or working as a gig platform driver is now governed by a completely redesigned legal structure aimed at shaping the future of employment in the world’s fastest growing major economy.
