Regulations

India implements four Labour Codes effective November 21 2025

ESG Broadcast Desk· 23 Nov 2025· 2 min read

The Government of India implemented its four Labour Codes effective November 21 2025, rationalising 29 existing labour laws and extending statutory social security to gig and platform workers. Indian enterprises gain single-registration compliance simplification while facing new mandatory contributions and expanded worker entitlements.

The Government of India implemented the four Labour Codes, the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety, Health and Working Conditions Code 2020, effective November 21 2025, rationalising 29 fragmented labour laws. All workers, including the entire gig and platform workforce, now have a statutory right to social security benefits such as PF, ESIC and insurance. Minimum wages become a statutory right across all sectors. The reform aims to modernise colonial-era frameworks and align India's labour ecosystem with global standards.

Gig economy aggregators must now make a mandatory contribution of 1–2% of annual turnover, capped at 5% of the amount paid to workers. Fixed-Term Employees gain all benefits equal to permanent workers, including gratuity eligibility after one year. Workers above 40 receive mandatory free annual health check-ups, and women may work night shifts across all establishments with consent and safety measures. Enterprises benefit from a single registration, a PAN-India single license, and a single return, with an Inspector-cum-Facilitator system shifting toward guidance.

Enterprises should transition to the single-registration, single-license and single-return compliance framework and prepare for the Inspector-cum-Facilitator model and two-member Industrial Tribunals for faster dispute resolution. Gig aggregators must operationalise the 1–2% turnover contribution toward worker social security. Employers should implement mandatory annual health check-ups for workers above 40, ensure equal benefits for Fixed-Term Employees, and arrange consent-based safety measures for women's night shifts. Social security coverage expanded from 19% in 2015 to over 64% in 2025.

Key figure — Aggregator contribution: 1–2% of annual turnover, capped at 5% of amount paid to gig workers

This content is AI-assisted and reviewed by the ESG Broadcast editorial team. It is for informational purposes only and is not investment or ESG-rating advice. See our Technology & Transparency policy.

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India implements four Labour Codes effective November 21 2025 | ESG Broadcast