Central govt. operationalises Labour Codes, Pg1
Central government fully operationalises four Labour Codes via gazette notifications, ensuring minimum wage and universal social security for all workers.
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Why in News?
The Government of India has fully operationalised the four Labour Codes through more than 30 gazette notifications issued on 8–9 May 2026. The codes have been in effect since 21 November 2025, marking one of India’s most significant labour reforms, aimed at simplifying labour laws, improving the ease of doing business, and expanding worker protection.
What are the Four Labour Codes?
India consolidated 29 central labour laws into 4 Labour Codes:
| Labour Code | Key Objective | Important Provisions |
|---|---|---|
| Code on Wages, 2019 | Universal wage protection | Uniform definition of wages; statutory minimum wage for all workers |
| Industrial Relations Code, 2020 | Simplify industrial relations | Threshold for layoffs without government permission increased to 300 workers |
| Code on Social Security, 2020 | Expand social security coverage | Benefits extended to gig workers, platform workers, and unorganized workers |
| Occupational Safety, Health and Working Conditions (OSH) Code, 2020 | Improve worker safety and welfare | Mandatory appointment letters, annual health check-ups, better workplace safety norms |
Detailed Insights:
Major Reforms Introduced
1. Work Hour Regulation
- Weekly working hours capped at 48 hours.
- Flexible work arrangements allowed subject to labour safeguards.
2. New Definition of Wages
Basic pay + Dearness Allowance (DA) + Retaining Allowance must constitute at least:
- 50% of total remuneration
- Ensures higher PF and gratuity benefits for workers.
3. Social Security for Gig Workers
- Aggregator platforms (such as food delivery and ride-sharing companies) must contribute:
- 1%−2% of annual turnover towards gig worker social security funds.
4. Women Empowerment Measures
- Women allowed to work night shifts with consent.
- Equal opportunity across establishments and sectors.
5. Administrative Simplification
- Labour law provisions streamlined:
- 1,228 sections → 480 sections
- 181 forms → 73 forms
- Reduction in compliance burden for industries.
Key Concepts Involved:
| Term | Meaning |
|---|---|
| Gig Workers | Workers engaged in temporary or platform-based jobs |
| Platform Workers | Workers providing services through digital platforms |
| Universal Social Security | Social protection available to all categories of workers |
| Minimum Wage | Legally mandated minimum payment to workers |
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