India fully operationalised four labour
codes on 21 November 2025
¨
India fully
operationalised four labour codes on 21 November 2025.
¨
The codes were
implemented after the publication of the required rules and notifications.
¨
The four labour codes
replaced 29 central labour laws.
¨
The objective is to
provide a consolidated framework for wages, industrial relations, social
security, and occupational safety.
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The four labour codes are
the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on
Social Security, 2020; and the Occupational Safety, Health and Working
Conditions Code, 2020.
¨
Government of India
brought these codes into force from 21 November 2025.
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The Code on Wages, 2019
applies to provisions related to wages, bonus, and minimum wages.
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Under the revised wage
definition, basic pay, dearness allowance, and retaining allowance must
constitute at least 50% of total remuneration.
¨
The Code on Social
Security, 2020 extends social security coverage to gig workers and platform
workers.
¨
Aggregator companies are
required to contribute 1% to 2% of annual turnover.
¨
The contribution is
subject to a ceiling of 5% of the amount paid to such workers.
¨
The Industrial Relations
Code, 2020 covers standing orders, trade unions, strikes, and layoffs.
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The framework includes
mandatory appointment letters for workers.
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It also provides equal
pay and equal opportunities for women in different shifts.
¨ The weekly working-hour limit has been fixed at 48 hours.
¨ The framework also includes provisions for overtime payment for additional work.