India Implements New Labour Codes

Nov 21, 2025

India Implements New Labour Codes

The Indian government has finally implemented the new labour codes – by far the biggest change ever to the Indian labour law regime. 29 national labour laws have been replaced by 4 new labour codes, effective November 21, 2025.

The new labour codes are: Code on Social Security, 2020, Industrial Relations Code, 2020, Occupational Health, Safety and Working Conditions Code, 2020, and Code on Wages, 2019 (collectively, “Labour Codes”).

The Labour Codes are positioned to modernize wage, social security, industrial relations, and workplace safety frameworks, with stated aims of improving worker welfare, easing compliance, and aligning India’s labour regime with contemporary global standards.

The Labour Codes were passed by both houses of the Parliament, i.e. the Lok Sabha (the lower house) and the Rajya Sabha (the upper house) and received the President’s assent on August 8, 2019 (Code on Wages) and September 29, 2020 (the other three Labour Codes). The Government has now notified the effective date of implementation of the Labour Codes.

Set out below is an overview of the manner in which the Labour Codes have been currently implemented:

Code	Implementation
Code on Social Security, 2020	The following provisions are now in force: Sections 1 to 41: These sections cover key areas of the code including the revised definition of wages, prohibition of gender discrimination in wages, and the minimum wage architecture (i.e., fixation of minimum wages, components, floor wage, hours of work, overtime). Section 42(4) to (9): Composition of State level advisory boards, committees/sub-committees, and related procedures. Sections 43 to 66: These sections cover the manner of payment of dues, undisbursed amounts, claims and dispute mechanisms and key administrative processes such as powers of authorities, compliances (such as records, returns, wage slips, etc.), offences and penalties (including compounding), and key miscellaneous provisions. Section 67(1); 67(2)(a)–(r) and (u)–(zc); 67(3)–(5): Rule-making powers of appropriate governments and the Centre Section 68: Power to remove difficulties Section 69: Repeal and savings of the Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965; and Equal Remuneration Act, 1976.
Industrial Relations Code, 2020	All provisions are now in force.
Occupational Health, Safety and Working Conditions Code, 2020	All provisions are now in force.
Code on Wages, 2019	The following provisions are now in force: Sections 1 to 14: These sections cover key areas of the code including the definitions and application. Section 15(1) and (2): The powers of the Government to establish and frame various social security schemes. Section 16(1)(c): Establishment of the Employees’ Provident Fund. Sections 17 to 141: These sections cover the primary social security landscape covering various areas including provident fund, employees’ state insurance, gratuity, maternity, employees’ compensation, building and construction workers’ welfare, and the welfare of unorganized/gig/platform workers. Section 143: These sections cover coves exemptions provisions in the code. Sections 144 to 163: Pandemic related relief on contributions; transfer of establishment liabilities; status of public servants; protection against attachment; and other rule‑making powers. Section 164(1): Repeal of legacy enactments and savings, to the extent notified. Section 164(2)(a) and (c), and 164(3): Transitional provisions and savings.

Employers across all sectors and sizes are advised to take necessary and immediate steps to ensure that their appointment letters / employment contracts and HR policies / Standing Orders are in compliance with provisions of the Labour Codes and the state level rules thereunder. In addition, the compensation breakdown and payroll systems should also be in compliance given the new wage definition and related provisions. Finally, the labour law compliances for each office / factory should be reviewed to take care of the provisions of the Labour Codes.

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