Centre notifies 4 labour codes, rationalises existing labour laws

New Delhi, Nov 21: In a historic decision, the governmen3t on Friday announced the implementation of the four Labour Codes, which rationalised 29 existing labour laws, with immediate effect.

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.

"The four labour codes have been notified and now they are the law of the land," said labour minister Mansukh Mandaviya at a press conference here.

By modernising labour regulations, enhancing workers' welfare and aligning the labour ecosystem with the evolving world of work, this landmark move lays the foundation for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat, a ministry statement said. According to the statement, many of India's labour laws were framed in the pre-Independence and early post-Independence era (1930s–1950s), at a time when the economy and world of work were fundamentally different.

While most major economies have updated and consolidated their labour regulations in recent decades, India has continued to operate under fragmented, complex and in several parts outdated provisions spread across 29 central labour laws, it said. According to Labour Minister Mansukh Mandaviya, the labour Codes will formalise employment, strengthen worker protection, and make the labour ecosystem simpler, safer and globally aligned. The four codes have 29 labour laws codified in them: four laws in the Wage Code, nine in the Social Security Code, 13 in the Occupational Safety, Health and Working Conditions Code, and three in the Industrial Relations Code. They contain wide-ranging social security provisions, such as a floor wage and a requirement for employers to contribute to social security. It proposes to fix a National Floor Level Minimum Wage, and redefine the break-up of wages to increase the share of the basic pay component - a provision to enable higher provisioning for social security for establishments, especially in the service sector. Similarly, aggregators employing gig workers have to contribute 1-2 per cent of annual turnover for social security, with the total contribution not exceeding 5 per cent of the amount payable by the aggregator.

Meanwhile, Prime Minister Narendra Modi has welcomed the implementation of the Four Labour Codes, calling it one of the most significant labour reforms undertaken since Independence. He said the move marks a major step towards empowering workers, simplifying compliance, and promoting Ease of Doing Business across the country. The Four Labour Codes on Wages, Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions have come into effect from November 21, 2025, rationalising 29 existing Central labour laws and replacing them with a modern and streamlined framework.