Labour marketIndia
The four labour codes (2019-2020)
Parliament adopted the Code on Wages in August 2019, then the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code in September 2020. Together they replace 29 central labour laws: a minimum wage for all employments above a national floor wage, prior government permission for lay-offs, retrenchment and closure only from 300 workers, a first legal framework for gig and platform workers, « inspectors-cum-facilitators » instead of inspectors. The four codes came into force on 21 November 2025; the central rules were notified on 8 May 2026 and a few States and Union Territories were still finalising theirs in mid-2026.
Updated: November 6, 2026
At a glance
Reference text
The Code on Wages, 2019 (No. 29 of 2019); The Industrial Relations Code, 2020 (No. 35 of 2020); The Code on Social Security, 2020 (No. 36 of 2020); The Occupational Safety, Health and Working Conditions Code, 2020 (No. 37 of 2020)[1][2][3][4][11]
No. Acts No. 29 of 2019, No. 35, 36 and 37 of 2020 · September 28, 2020
Read the text ↗Carried by
- Santosh Kumar Gangwar[5][6]Minister of State for Labour and Employment — introduced the Code on Wages (2019) and the three 2020 codes · 2019-2020 · Initiator
- Mansukh Mandaviya[17][12]Minister of Labour and Employment — entry into force, central rules and the 2026 amendment · 2025-2026 · Implementation
- Shobha Karandlaje[18][28]Minister of State for Labour and Employment — answers to Parliament on implementation · 2025-2026 · Implementation
Implementation
- Ministry of Labour and Employment (central government)
- Chief Labour Commissioner (Central) — Central Industrial Relations Machinery
- State and Union Territory governments (labour is a concurrent subject)
- EPFO and ESIC (provident fund and employees’ state insurance)
Stated objective
Amalgamate, simplify and rationalise the central labour laws, as recommended by the Second National Commission on Labour (2002): fewer definitions and authorities, use of technology in enforcement, more transparency and accountability, minimum wages extended to all workers, social security for organised, unorganised, gig and platform workers, and easier compliance to encourage new enterprises and job creation.[5][7][6][17]
According to the government (statements of objects and reasons of the bills, 2019-2020, and answers to the Lok Sabha, 2025-2026)
Main measures
- Wages: minimum wages apply to all employments (not only « scheduled » ones); the central government must fix a statutory floor wage, possibly different by area, below which no State may set its minimum wages; timely payment of wages for all employees; allowances exceeding 50% are counted as wages, which raises provident fund, pension, gratuity and maternity benefit entitlements.[1][17][26][23]
- Lay-offs and closures: prior permission of the government for lay-off, retrenchment and closure applies to factories, mines and plantations with at least 300 workers (a threshold governments may raise); certified standing orders also start at 300 workers; a worker re-skilling fund receives 15 days’ wages from the employer for each retrenched worker.[2][6]
- Collective relations: 14 days’ notice of strike or lock-out in every industrial establishment; a union with 51% of workers becomes the « negotiating union », otherwise a « negotiating council » brings together unions backed by at least 20%; two-member industrial tribunals; fixed-term employment with the same benefits as permanent staff and pro-rata gratuity after one year.[2][6][27][26]
- Gig and platform workers defined in law for the first time: the central government may frame schemes (life and disability cover, accident insurance, health and maternity, old age); a social security fund can draw on a contribution of 1 to 2% of the annual turnover of the aggregators concerned, capped at 5% of what they pay to these workers, at a rate to be notified.[3][24]
- Social security coverage: ESIC health insurance extended nationwide and compulsory even for a single worker in hazardous processes; provident fund (EPFO) for every establishment with 20 or more employees, without a list of covered industries.[17][3]
- Safety and working conditions: standards for every establishment with 10 or more workers (or one in a hazardous activity); compulsory appointment letters; free annual health check-ups above a specified age; women allowed to work at night in all establishments, with their consent and safety safeguards.[8][17]
- Inspection: « inspectors-cum-facilitators » who also advise employers and workers replace inspectors; web-based, randomised inspection schemes; the employer gets a chance to comply before prosecution (except for a repeat within five years); compounding of offences and fines instead of imprisonment for some first offences.[1][5][30]
In data
Laws listed in the bills’ statements of objects and reasons
| Code | Laws merged |
|---|---|
| Code on Wages, 2019 | 4 |
| Industrial Relations Code, 2020 | 3 |
| Code on Social Security, 2020 | 9 |
| Occupational Safety, Health and Working Conditions Code, 2020 | 13 |
Scale starts at 0 · 29 laws in total, the figure given by the government.
Unemployment rate (ILO)
4.2%
2024
Employment rate (15-64)
53.3%
2024
Key figures
Central labour laws replaced
29
2019-2020 codes · Observed
according to the Ministry of Labour and Employment (answer to the Lok Sabha, 15 December 2025)[17]
Workers from which lay-offs, retrenchment and closure need prior permission
300
since 21 November 2025 · Observed
Industrial Relations Code, 2020, section 77[2][6]
Factories, mines and plantations; the appropriate government may raise the threshold by notification.
Maximum contribution of platforms to the social security fund, share of annual turnover
2%
rate to be notified (1 to 2%) · Announced
Code on Social Security, 2020, section 114[3][24]
Legal ceiling, not an observed rate; contribution capped at 5% of the amounts paid to gig and platform workers.
Sanctioned posts of inspector-cum-facilitator, Chief Labour Commissioner (Central)
237
August 2026 · Observed
according to the Ministry of Labour and Employment (answer to the Lok Sabha, 3 August 2026)[32]
Central sphere only, plus 18 posts at the Directorate General of Occupational Safety and Health; States have their own enforcement machinery. Sanctioned strength, not posts filled.
Minimum wage claim cases, central sphere
1,068
2025-26 fiscal year · Observed
according to the Ministry of Labour and Employment (answer to the Lok Sabha, 10 August 2026)[34]
Claims under the Minimum Wages Act, 1948 (now subsumed in the Code on Wages); 7,424 workers benefited. 2,074 cases in 2022-23.
Timeline
Lok Sabha passes the Code on Wages[11]
Rajya Sabha passes the Code on Wages[11]
Nationwide strike called by central trade unions[25]
According to the Ministry of Labour, the call came from « certain Central Trade Unions »; their demands were « not confined only to labour reforms or labour welfare issues » but extended to broader policy matters. The ministry puts absenteeism at 9.22%.
National conference of labour ministers of the States and Union Territories[16]
- In force
The four codes come into force across the country[17][28][31]
In force, rules still being completed: central rules notified on 8 May 2026; a few States and Union Territories were still pre-publishing or finalising theirs in July 2026, the repealed laws’ rules continuing to apply where consistent with the codes.
Entry into force of the four codes[17][28][20]
Provisions that need no rules apply at once; during the transition, the rules, notifications and schemes made under the repealed laws continue insofar as they are consistent with the codes. By mid-December 2025, 34 or 35 States and Union Territories, depending on the code, had pre-published draft rules.
Industrial Relations Code (Amendment) Act, 2026[13][12][10]
Passed by both Houses on 12 February 2026 and deemed in force from 21 November 2025, it states in the Code itself that the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946 and the Industrial Disputes Act 1947 are repealed, and keeps the existing tribunals working until the new ones are functional. The government presented it as removing any doubt that the repeal had been delegated to the executive.
The debate
Citoyen takes no position: arguments are reported as their authors put them.
According to its supporters
- The government argues that the codes reduce the multiplicity of definitions and authorities, bring single registration, licence and return, digital filing and web-based inspection, and so improve transparency and ease of compliance.[18][30]
- For the government, the codes widen protection: a statutory minimum wage for all workers above a national floor, compulsory appointment letters to formalise jobs and, for the first time, a legal basis for social security schemes for gig and platform workers.[17][29]
- The government expects fixed-term employment, with the same benefits as permanent staff and gratuity after one year instead of five, to reduce contract labour.[19]
- The bills present the merger as implementing the Second National Commission on Labour (2002) after tripartite talks with employers and industry, and the 2020 versions as incorporating Standing Committee recommendations.[5][6]
According to its opponents
- Rajya Sabha member Elamaram Kareem, in a bill to repeal the four codes, argued that they dilute workers’ protections « to the sole advantage of the employers », would lead to a « hire and fire » regime and make forming unions and striking « virtually » impossible.[14]
- The same bill held that turning inspectors into « facilitators » cripples inspection, that the minimum wage is not tied to the formula agreed by the Indian Labour Conference, and that the codes let the executive change substantive provisions by notification.[14]
- Central trade unions called a nationwide strike on 9 July 2025 with a charter of demands that included labour reforms; the government replied that the demands also extended to broader policy matters and that absenteeism was 9.22%.[25]
- Lok Sabha member Supriya Sule, in a private member’s bill, argued that gig workers still lack fair wages, workplace protections and grievance redress, and proposed minimum wages for them and transparency of automated decisions.[15]
Indicators to watch
- Unemployment rate · World BankSee the card →
- Employment rate · World BankSee the card →
- National floor wage (Code on Wages, section 9) · Ministry of Labour and Employmentno Citoyen card yet
- States and Union Territories with final rules under each code · Ministry of Labour and Employmentno Citoyen card yet
- Gig and platform workers covered by a social security scheme · Ministry of Labour and Employmentno Citoyen card yet
Sources
- [1]The Code on Wages, 2019 (No. 29 of 2019) — The Gazette of India, Extraordinary, Part II, Section 1, 8 August 2019 — Ministry of Law and Justice (Legislative Department), via Sansad, August 8, 2019
- [2]The Industrial Relations Code, 2020 (No. 35 of 2020) — The Gazette of India, Extraordinary, Part II, Section 1, 29 September 2020 — Ministry of Law and Justice (Legislative Department), via Sansad, September 29, 2020
- [3]The Code on Social Security, 2020 (No. 36 of 2020) — The Gazette of India, Extraordinary, Part II, Section 1, 29 September 2020 — Ministry of Law and Justice (Legislative Department), via Sansad, September 29, 2020
- [4]The Occupational Safety, Health and Working Conditions Code, 2020 (No. 37 of 2020) — The Gazette of India, Extraordinary, Part II, Section 1, 29 September 2020 — Ministry of Law and Justice (Legislative Department), via Sansad, September 29, 2020
- [5]The Code on Wages, 2019 — Bill No. 184 of 2019 as introduced in Lok Sabha (Statement of Objects and Reasons) — Lok Sabha, July 2019
- [6]The Industrial Relations Code, 2020 — Bill No. 120 of 2020 as introduced in Lok Sabha (Statement of Objects and Reasons) — Lok Sabha, September 2020
- [7]The Code on Social Security, 2020 — Bill No. 121 of 2020 as introduced in Lok Sabha (Statement of Objects and Reasons) — Lok Sabha, September 2020
- [8]The Occupational Safety, Health and Working Conditions Code, 2020 — Bill No. 122 of 2020 as introduced in Lok Sabha (Statement of Objects and Reasons) — Lok Sabha, September 2020
- [9]The Industrial Relations Code, 2020 — Bill No. 120-F of 2020 as passed by the Houses of Parliament (Lok Sabha 22 September 2020, Rajya Sabha 23 September 2020) — Parliament of India (Sansad), September 28, 2020
- [10]Bills database — « Code » search, page 1 (Industrial Relations Code 2020 and (Amendment) 2026, private members' bills) — Parliament of India (Sansad)
- [11]Bills database — « Code » search, page 2 (Code on Wages 2019, Code on Social Security 2020, OSH Code 2020, withdrawn 2019 bills) — Parliament of India (Sansad)
- [12]The Industrial Relations Code (Amendment) Bill, 2026 — Bill No. 33 of 2026 as introduced in Lok Sabha (Statement of Objects and Reasons) — Lok Sabha, February 10, 2026
- [13]The Industrial Relations Code (Amendment) Bill, 2026 — as passed by the Houses of Parliament, assented to on 16 February 2026 (Act No. 1 of 2026) — Parliament of India (Sansad), February 16, 2026
- [14]The Labour Codes (Repeal) Bill, 2021 — private member's bill introduced in Rajya Sabha by Elamaram Kareem (Statement of Objects and Reasons) — Rajya Sabha, February 4, 2022
- [15]The Code on Social Security (Amendment) Bill, 2025 — private member's bill No. 79 of 2025 introduced in Lok Sabha by Supriya Sule (Statement of Objects and Reasons) — Lok Sabha, December 5, 2025
- [16]Lok Sabha Unstarred Question No. 123 « Labour Policy and Labour Code », answered on 1 December 2025 — Ministry of Labour and Employment / Lok Sabha, December 1, 2025
- [17]Lok Sabha Starred Question No. 218 « Implementation of Four Labour Codes », answered on 15 December 2025 — Ministry of Labour and Employment / Lok Sabha, December 15, 2025
- [18]Lok Sabha Unstarred Question No. 2484 « Features of New Labour Codes », answered on 15 December 2025 — Ministry of Labour and Employment / Lok Sabha, December 15, 2025
- [19]Lok Sabha Unstarred Question No. 2341 « SBI Projections on Impact of Labour Codes », answered on 15 December 2025 — Ministry of Labour and Employment / Lok Sabha, December 15, 2025
- [20]Lok Sabha Unstarred Question No. 2409 « Implementation of Labour Codes », answered on 15 December 2025 — Ministry of Labour and Employment / Lok Sabha, December 15, 2025
- [21]Lok Sabha Unstarred Question No. 319 « Rules for Labour Codes », answered on 2 February 2026 — Ministry of Labour and Employment / Lok Sabha, February 2, 2026
- [22]Lok Sabha Unstarred Question No. 406 « National Social Security Fund for Gig and Platform Workers », answered on 2 February 2026 — Ministry of Labour and Employment / Lok Sabha, February 2, 2026
- [23]Lok Sabha Unstarred Question No. 1523 « Implementation of Four Labour Codes », answered on 9 February 2026 — Ministry of Labour and Employment / Lok Sabha, February 9, 2026
- [24]Lok Sabha Unstarred Question No. 3745 « Funding under Code on Social Security, 2020 », answered on 16 March 2026 — Ministry of Labour and Employment / Lok Sabha, March 16, 2026
- [25]Lok Sabha Unstarred Question No. 3906 « Demands of Trade Unions », answered on 16 March 2026 — Ministry of Labour and Employment / Lok Sabha, March 16, 2026
- [26]Lok Sabha Unstarred Question No. 4904 « Fixed Term Employment and Universal Minimum Wages », answered on 23 March 2026 — Ministry of Labour and Employment / Lok Sabha, March 23, 2026
- [27]Lok Sabha Unstarred Question No. 5838 « Industrial Relations Code », answered on 30 March 2026 — Ministry of Labour and Employment / Lok Sabha, March 30, 2026
- [28]Lok Sabha Unstarred Question No. 152 « Implementation of the Four Labour Codes », answered on 20 July 2026 — Ministry of Labour and Employment / Lok Sabha, July 20, 2026
- [29]Lok Sabha Unstarred Question No. 194 « Status of Four Labour Codes », answered on 20 July 2026 — Ministry of Labour and Employment / Lok Sabha, July 20, 2026
- [30]Lok Sabha Unstarred Question No. 1162 « New Labour Codes », answered on 27 July 2026 — Ministry of Labour and Employment / Lok Sabha, July 27, 2026
- [31]Lok Sabha Unstarred Question No. 1242 « Status of Labour Code Implementation », answered on 27 July 2026 — Ministry of Labour and Employment / Lok Sabha, July 27, 2026
- [32]Lok Sabha Unstarred Question No. 2365 « Strength of Inspector-cum-Facilitator », answered on 3 August 2026 — Ministry of Labour and Employment / Lok Sabha, August 3, 2026
- [33]Lok Sabha Unstarred Question No. 2438 « Implementation of the New Labor Codes », answered on 3 August 2026 — Ministry of Labour and Employment / Lok Sabha, August 3, 2026
- [34]Lok Sabha Unstarred Question No. 3467 « Minimum Wages Rates », answered on 10 August 2026 — Ministry of Labour and Employment / Lok Sabha, August 10, 2026