India's 4 New Labour Codes (2019–2020)

The biggest overhaul of Indian labour law since independence — 29 older Acts consolidated into 4 codes. Covers wages, industrial relations, social security, and occupational safety. Status as of May 2026: partially notified. Plain-English breakdown of each code, what it consolidates, and what changes.

Passed 2019-2020 · Partially in force · Older Acts continue meanwhile

Quick view of all 4 codes

  • 4 new codes consolidate 29 older labour laws into a single framework
  • Code on Wages: national floor wage, universal coverage, ₹21k bonus cap
  • IR Code: hiring/firing without govt permission up to 300 workers (was 100)
  • Social Security Code: extends EPF/ESI/maternity to GIG + PLATFORM workers
  • OSH Code: uniform 8-hour day, 48-hour week, contract labour 50+
  • Status: Wages Code partially live. Other 3 NOT yet fully notified as of May 2026
  • Until full notification, older Acts (Factories, EPF, ESI, Maternity Benefit, etc.) continue to apply
Code 1 of 4 — Passed: August 2019

Code on Wages, 2019

Consolidates 4 wage-related laws into one. Introduces a NATIONAL FLOOR WAGE below which no state can set its own minimum. Extends minimum wage protection to ALL employees (earlier limited to scheduled employments).

Consolidates these older Acts
  • Payment of Wages Act, 1936
  • Minimum Wages Act, 1948
  • Payment of Bonus Act, 1965
  • Equal Remuneration Act, 1976
Key changes
  • National floor wage (Centre-notified) becomes the absolute minimum for any state
  • Coverage expanded — every employee, every establishment, regardless of skill or sector
  • Definition of "wages" standardised across all 4 absorbed laws — 50% basic + DA minimum
  • Universal applicability: factories, mines, plantations, govt offices, shops & establishments
  • Equal remuneration provision retained — no gender pay discrimination for same/similar work
  • Bonus: 8.33% minimum, 20% maximum (unchanged); applicability cap raised to ₹21,000/mo
  • Single licence + single registration + single return — compliance simplification
Notification status (as of May 2026)
Partially notified. National floor wage NOT yet notified (as of May 2026). Older Acts continue to govern in practice.
Code 2 of 4 — Passed: September 2020

Industrial Relations Code, 2020

Consolidates 3 industrial-relations laws. Most controversial change: hiring/firing threshold raised — establishments with FEWER than 300 workers can hire/fire without government permission (earlier 100).

Consolidates these older Acts
  • Industrial Disputes Act, 1947
  • Trade Unions Act, 1926
  • Industrial Employment (Standing Orders) Act, 1946
Key changes
  • Layoff / retrenchment / closure: govt permission needed only above 300 workers (was 100)
  • Fixed-term employment formally recognised — fixed-term workers get same pay/benefits/gratuity as permanent
  • Strike notice: mandatory 14-day prior notice (was sector-specific earlier)
  • Conciliation period extended: strikes during conciliation banned
  • Negotiating union recognition: requires 51%+ of workers (or majority via secret ballot)
  • Standing orders applicability raised to establishments with 300+ workers (was 100)
  • Worker re-skilling fund: 15 days' wages contribution from employer on retrenchment
Notification status (as of May 2026)
Passed but NOT YET notified (as of May 2026). Industrial Disputes Act + Trade Unions Act + Standing Orders Act continue to apply.
Code 3 of 4 — Passed: September 2020

Code on Social Security, 2020

Biggest of the 4 codes — consolidates 9 social-security laws. KEY innovation: extends social security coverage to GIG WORKERS, PLATFORM WORKERS, and self-employed for the first time. Funds via central scheme + employer aggregator contributions.

Consolidates these older Acts
  • Employees' Provident Funds Act, 1952
  • Employees' State Insurance Act, 1948
  • Maternity Benefit Act, 1961
  • Payment of Gratuity Act, 1972
  • Employees' Compensation Act, 1923
  • Building & Other Construction Workers Act, 1996
  • Unorganised Workers' Social Security Act, 2008
  • Cine Workers Welfare Fund Act, 1981
  • + 1 more
Key changes
  • Gig & platform workers (Ola/Uber drivers, Swiggy/Zomato delivery agents, freelancers): now eligible for ESI, PF, maternity
  • Aggregator companies (Uber, Swiggy, Amazon Flex): must contribute 1-2% of annual turnover to gig worker social security fund
  • Centralised registration via Shram Suvidha portal — single registration for all schemes
  • Universal account number (UAN) extended across all social security schemes
  • Career-tracking-portable benefits — your PF / ESI / gratuity follow you across employers + sectors
  • Maternity benefit extended to ALL women workers including unorganised (earlier only formal sector)
  • Building & construction workers cess unified at 1% of construction cost (was variable)
Notification status (as of May 2026)
Partially notified — specific sections live, most pending state-level rules. EPF Act + ESI Act + Maternity Benefit Act continue to govern day-to-day. Gig worker registration BEGAN in some states.
Code 4 of 4 — Passed: September 2020

Occupational Safety, Health & Working Conditions Code, 2020

Consolidates 13 sector-specific safety / working-conditions laws into a single code. Standardises working hours, overtime, leave, working conditions, contract labour rules, inter-state migrant worker protection.

Consolidates these older Acts
  • Factories Act, 1948
  • Mines Act, 1952
  • Plantations Labour Act, 1951
  • Contract Labour (Regulation & Abolition) Act, 1970
  • Inter-State Migrant Workmen Act, 1979
  • Beedi & Cigar Workers Act, 1966
  • Building & Other Construction Workers Act, 1996
  • + 6 more (13 in total)
Key changes
  • Working hours uniform at 8 hours/day, 48 hours/week across all sectors
  • Daily overtime cap raised to 125 hours/quarter (sector-specific earlier)
  • Contract labour threshold raised to 50+ workers (was 20) — small contractors freed from licensing
  • Inter-state migrant workers: journey allowance + universal registration + helpline
  • Women allowed to work in all sectors at all hours WITH employer consent + safety arrangements
  • Letter of appointment mandatory for every employee — must include all key terms
  • Health screening + safety committee mandatory in factories of 250+ workers
  • Self-certification + risk-based inspections (replacing per-Act inspections)
Notification status (as of May 2026)
Passed but NOT YET notified (as of May 2026). Factories Act, Contract Labour Act, etc. continue to apply.

New Labour Codes FAQ

Are the new Labour Codes currently in force?

Partially. All 4 codes have been PASSED by Parliament (Wages Code in 2019, the other 3 in 2020) and received Presidential assent. However, full notification depends on state-level rule-making. As of May 2026: Code on Wages is partially notified (specific provisions only); Industrial Relations Code is NOT notified; Social Security Code is partially notified (gig worker registration began in some states); OSH Code is NOT notified. Day-to-day labour compliance still operates under the 29 older Acts they replace.

What changes for employers when the Codes are fully notified?

Massive compliance simplification. Currently 29 Acts have 29 separate registrations, returns, inspections, and licensing. The Codes consolidate to 4 — single registration on Shram Suvidha Portal, common returns, common inspector regime. Specific changes: hiring/firing without govt permission up to 300 workers (IR), contract labour threshold raised to 50+ (OSH), aggregator companies must fund gig worker social security at 1-2% of turnover (Social Security Code), national floor wage becomes the absolute minimum (Wages).

How do the Codes affect gig and platform workers?

The Code on Social Security 2020 is the FIRST law in India to formally extend social security coverage to gig workers (Ola/Uber drivers, Swiggy/Zomato delivery, freelance designers etc.) and platform workers. Aggregator companies must contribute 1-2% of annual turnover to a Gig Worker Social Security Fund that provides ESI-like medical cover, accident insurance, maternity, and old-age pension. Gig workers register on Shram Suvidha Portal. As of 2026, registration has begun in some states (Karnataka, Rajasthan, Tamil Nadu lead) but operational rollout is incomplete.

Why are the Codes taking so long to notify?

Three reasons: (1) Each state must independently frame and notify Rules under each code — a slow process. (2) State governments + trade unions have raised concerns about the IR Code's relaxed hiring/firing threshold, leading to political delays. (3) The administrative machinery (single Shram Suvidha portal, aggregator registration, inspector retraining) takes time to set up. As of May 2026, the central government is targeting full notification by end-2026, but timelines have slipped multiple times. Until then, dual compliance with old Acts continues.

Will gratuity, EPF, ESI, and maternity benefit change?

The core entitlements stay roughly the same under the Social Security Code, but with three important extensions: (a) coverage expands to gig + platform workers + fixed-term + unorganised, (b) registration unifies on Shram Suvidha Portal — your benefits become portable across employers/sectors via UAN, (c) maternity benefit becomes universal across formal + informal sectors. Specific numbers — 26-week maternity, 12% EPF, 5-year gratuity — are unchanged at this stage. Watch for revisions via central notification post-2026.