YTC Ventures | Technocrat’ Magazine
November 22, 2025
India has finally rolled out its four new Labour Codes, effective from November 21, 2025. These four consolidated laws replace 29 old, often colonial-era statutes and represent the most significant overhaul of labour regulations since Independence.
The reforms aim to bring clarity, extend social security to gig workers and migrants, guarantee minimum wages across the board, and make compliance easier for businesses.Prime Minister Narendra Modi described it as a “historic day for India’s workers,” promising dignity, safety, and portability of benefits in a rapidly changing job market.
The Four Codes at a Glance
| Code | What It Covers | Biggest Changes for Workers |
|---|---|---|
| Code on Wages | Minimum wages, timely payment, bonuses | National floor wage; payment within 7–15 days; equal pay for same work (including transgender workers) |
| Industrial Relations Code | Trade unions, strikes, layoffs, disputes | Higher thresholds for factories (easier to set up); fixed-term employees get gratuity & benefits like permanent staff |
| Code on Social Security | PF, ESI, gratuity, maternity, gig workers | Gig & platform workers now covered; aggregators contribute 1–2% of turnover; gratuity after just 1 year of fixed-term work; portable benefits for migrants |
| Occupational Safety, Health & Working Conditions | Safety, working hours, annual health checks | Free yearly health check-ups (40+ age); women can work night shifts with safety & consent; double pay for overtime; safety committees mandatory in larger units |
Who Benefits the Most?
- Gig & delivery workers finally get formal social security.
- Migrant labourers can carry benefits state-to-state.
- Women gain safer night-shift options and extended maternity coverage.
- Small businesses face fewer overlapping laws and filings.
The Controversy
Trade unions are up in arms. They argue the codes weaken collective bargaining, make “hire-and-fire” easier for companies with 300+ employees, and push more workers into fixed-term contracts without long-term security. Protests broke out in several industrial belts within hours of the rollout.
Bottom Line
Love it or hate it, India’s workplace just changed forever. Enforcement quality over the next 12–24 months will decide whether these codes become a genuine shield for workers or just another set of rules that look good on paper.The great Indian labour experiment has begun.
First, a Quick Look at India’s Labour Market in 2025
India is the world’s most populous country and has one of the youngest workforces on the planet.
Yet it remains overwhelmingly informal and shockingly under-documented.
| Industry / Sector | Employed (in million) | Share of Total Workforce | Formal Employment (%) | Unemployment Rate in Sector (2025) |
|---|---|---|---|---|
| Agriculture & Allied | 195 | 45.5% | ~4% | 1–2% (hidden under-employment ~40%) |
| Manufacturing | 58 | 13.5% | 22% | 5.8% |
| Construction | 74 | 17.2% | 8% | 6.2% |
| Trade, Hotels & Restaurants | 52 | 12.1% | 9% | 7.1% |
| Transport, Storage & Logistics | 28 | 6.5% | 15% | 8.4% |
| IT–ITES & Professional Services | 6.5 | 1.5% | 92% | 9.8% (freshers struggle) |
| Financial Services & Insurance | 5.8 | 1.4% | 88% | 4.2% |
| Education & Healthcare | 22 | 5.1% | 38% | 3.9% |
| Gig & Platform Economy (delivery, ride-hailing, freelancing) | 15–18 | 3.5–4.2% | <1% | 12–18% (highly variable) |
| Others (mining, utilities, etc.) | 12 | 2.8% | 45% | 5.5% |
| Total Workforce | ~430 million | 100% | ~12–14% formal | Overall open unemployment ~7.2% |
Key realities in 2025:
- 86–88% of Indian workers have no written contract, no PF, no ESI.
- Average real wage growth has been only 1.2% per year in the last decade for informal workers.
- 45% of the workforce is still in agriculture, earning ₹8,000–12,000 per month on average.
- Youth unemployment (age 20–29) in urban areas hovers at 17–20%; many highly educated youngsters are driving cabs or delivering food.
This is the chaotic, unequal, and largely unprotected labour market the four new codes are trying to fix.
The Four New Labour Codes – What Actually Changes
- Code on Wages (2019)
- One national floor wage (states can only go higher).
- Salary before 7th–10th of every month.
- Bonus and equal-pay rules now apply to everyone, including contract and transgender workers.
- Industrial Relations Code (2020)
- Factories can now be set up with 20 workers (instead of 10) without government permission.
- Companies with up to 300 workers can retrench without government approval (earlier limit was 100).
- Fixed-term employees get the same benefits (gratuity, leave, etc.) as permanent staff.
- Code on Social Security (2020) – The real game-changer
- Gig workers and platform workers are now legally “workers” for the first time.
- Swiggy, Zomato, Ola, Urban Company, etc., must contribute 1–2% of their annual turnover to a national social security fund.
- Migrant workers get portable benefits — your PF and ESI travel with you from Bihar to Maharashtra.
- Gratuity after just one year of fixed-term employment (was five years earlier).
- Occupational Safety, Health & Working Conditions Code (2020)
- Free annual health check-up for every worker above 40.
- Women can legally work night shifts in any industry with proper safety and consent.
- Double wages for overtime.
- Mandatory safety committees in every factory with 50+ workers.
Who Celebrates, Who Protests?Winners
- 15–18 million gig workers finally get accident insurance, health cover, and some pension.
- Inter-state migrant labourers (estimated 100+ million) can now access benefits anywhere.
- Women in IT, BPO, hospitals, and manufacturing get safer night-shift options.
- Small and medium businesses say “one law, one portal” will save crores in compliance costs.
Critics & Protestors
- Central trade unions (RSS-backed BMS is partially supportive, but Left unions like CITU and AITUC are furious).
- They fear the “300-worker rule” will lead to mass layoffs disguised as retrenchment.
- Fixed-term contracts may become the new normal, killing job security.
- Street protests already visible in Ahmedabad, Coimbatore, and Kolkata industrial belts.
The Road Ahead – Will It Actually Work?
Success depends on three things in the next 24 months:
- How quickly all states notify their own rules (some BJP-ruled states did it overnight; opposition-ruled states are dragging feet).
- Whether the government can build a functional national portal for gig-worker registration and contributions.
- How honestly companies (especially unlisted and small ones) implement the new safety and wage rules.
Early signs: Within 24 hours of rollout, #ShramevJayate and #LabourCodes2025 were trending with over 800K posts. Delivery partners in Bengaluru and Delhi are already sharing screenshots of new “social security” clauses in their apps.
Final Verdict
India has taken a bold, messy, imperfect leap from a 1940s labour framework to a 2030-ready one.
For the first time, a Zomato delivery boy in Patna and a Google software engineer in Bengaluru fall under the same broad protective umbrella — at least on paper.Whether this becomes a genuine shield for India’s 430 million workers or just another chapter of “great laws, poor enforcement” will be decided in factories, construction sites, and app dashboards over the next two years.The great Indian labour experiment has officially begun. Stay tuned.
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