Under The New Framework, Every Worker Is Entitled To A Statutory Minimum Wage And Timely Payment

India has entered a new era of labour reform with the rollout of the four new labour codes, which officially came into force on November 21, 2025. Together, these laws reshape the country’s employment structure, expand protections for millions of workers, and replace a patchwork of regulations that have existed since the pre-Independence era.

The new set of rules brings together the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020).

The government has described this transition as a “historic modernisation” of India’s labour system, aiming to create a more secure, productive and future-ready workforce under the Aatmanirbhar Bharat vision.

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One of the biggest shifts is the push toward formalisation. Under the old laws, employers were not required to issue appointment letters, leaving countless workers without written proof of employment.

A written appointment letter becomes compulsory for all workers with the new codes, ensuring clarity on employment terms and strengthening their legal protections.

Another major reform is the expansion of social security. Earlier, benefits such as PF, ESIC and insurance were limited to specific sectors or establishments.

The new Social Security Code extends these protections to all workers, including gig workers and platform workers for the first time, acknowledging the realities of modern digital employment.

ESIC coverage will now be available pan-India, even for small or hazardous establishments.

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The right to minimum wages has also been universalised. Previously, minimum wages applied only to scheduled industries, leaving large sections of the workforce outside their scope. Under the new framework, every worker is entitled to a statutory minimum wage and timely payment.

Health and safety reforms are another major plank of the new system. Employers must now provide free annual health check-ups to workers above the age of 40 — a requirement missing from earlier rules.

The codes also broaden workplace safety regulations, aiming to reduce accidents and ensure better working conditions across sectors.

Women’s participation in work, especially in higher-paying roles, is expected to increase under the new rules. Restrictions that prevented women from working night shifts or in certain occupations have been removed.  Women can now work across all establishments and job categories, opening avenues for better income and greater mobility, with adequate safety measures in place.

Compliance, long considered one of the most challenging aspects of India’s labour laws, has been significantly simplified. Businesses will now be able to operate with a single registration, a single licence, and a single return, instead of navigating multiple filings under different laws.

According to the government, the overhaul was necessary because many of India’s previous labour laws were written between the 1930s and 1950s, at a time when concepts like the gig economy did not exist.