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2h ago

India Puts Four Labour Codes Into Force, Overhauling Wages, Social Security And Workplace Rules

Early reactions highlight wider protections alongside calls for clear rules and safeguards.

States that have allowed women to work at night with their consent and adequate safety measures saw a 13% rise in the total number of women employed. (REUTERS)
Some Indian states, which have had success with manufacturing, have already rolled out some of the key provisions in the labour codes (PTI)
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Overview

  • The Union government’s November 21 notification brings into effect four consolidated labour codes that replace 29 laws covering wages, industrial relations, social security and occupational safety.
  • Key measures include a statutory floor wage, mandatory appointment letters and pay slips, overtime at twice the normal rate, annual health check-ups for workers over 40, expanded ESIC coverage and recognition of work-from-home.
  • Gig and platform workers are brought into social security for the first time, with aggregators reported to contribute 1–2% of turnover to a dedicated fund, and fixed-term employees become eligible for gratuity after one year.
  • Industry body CII welcomed simpler compliance and wider protections, while worker voices from Rajasthan and a TUCC leader praised time-bound minimum wages, equal pay provisions, night-shift permissions and coverage for more than 40 crore workers.
  • Analysts flag implementation issues including the need for detailed rules, a higher standing-orders threshold of 300 employees, algorithm-driven inspections and the possibility of lower take-home pay due to a redefined wage base increasing statutory contributions.