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Labour Codes

Labour Codes

India's central labour law was spread across 29 separate Acts, many of them framed between the 1930s and the 1950s. Parliament replaced them with four Labour Codes: the Code on Wages, 2019, and the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code, all of 2020. The Government brought all four into force on 21 November 2025. Because labour is on the Concurrent List, both the Centre and the States make rules under the Codes; by 24 July 2025, 32 States/UTs had pre-published draft rules under the four Codes.

Women workers on a textile production line at a factory in India.
Women workers on a textile production line at a factory in India. · EqualStock IN · Pexels
21 Nov 2025
All four Codes come into force
32
States/UTs with draft rules under the four Codes (24 Jul 2025)
1 year
Service for gratuity under fixed-term employment, down from five (Nov 2025)
Central labour laws rationalised into four Labour Codes (in force 21 Nov 2025)
2019
Code on Wages enacted
Passed by the Lok Sabha on 30 July and the Rajya Sabha on 2 August 2019; published as Act No. 29 of 2019 on 8 August, repealing four wage laws.
2020
Three more Codes passed
2022
States pre-publish draft rules
2025
32 States/UTs publish drafts
2025
Codes come into force
2026
States urged to finalise rules
2019
1milestones
20192026
Latest
Code on Wages enacted
Passed by the Lok Sabha on 30 July and the Rajya Sabha on 2 August 2019; published as Act No. 29 of 2019 on 8 August, repealing four wage laws.

Why it matters The Codes give every worker a statutory right to a minimum wage, which earlier applied only to scheduled employments. They define gig work and platform work in law for the first time, and make fixed-term employees eligible for gratuity after one year of continuous service instead of five.

  • Code on Wages: passed by the Lok Sabha on 30 July 2019 and the Rajya Sabha on 2 August 2019; Act No. 29 of 2019, dated 8 August 2019
  • Industrial Relations, Social Security and OSH Codes: passed by the Rajya Sabha on 23 September 2020, a day after the Lok Sabha
  • All four Codes in force from 21 November 2025, rationalising 29 central labour laws
  • Aggregators to contribute 1–2% of annual turnover, capped at 5% of the amount paid to gig and platform workers (Nov 2025)
  • Floor wage fixed by the Central Government; States cannot set minimum wages below it (Dec 2025)
  • 24 July 2025: 32 States/UTs had pre-published draft rules under the four Codes; West Bengal and Lakshadweep under none

History

Before the Codes, central labour law was spread across 29 Acts, many framed between the 1930s and the 1950s. The Code on Wages Bill was passed by the Lok Sabha on 30 July 2019 and the Rajya Sabha on 2 August 2019, and was published as Act No. 29 of 2019 on 8 August 2019. It repealed the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976. The other three Codes were passed by the Lok Sabha on 22 September 2020 and the Rajya Sabha on 23 September 2020.

Notable milestone

On 21 November 2025 the Government brought all four Codes into force, rationalising 29 central labour laws. The Code on Wages gives all workers a statutory right to a minimum wage; earlier, minimum wages applied only to scheduled employments. The Code on Social Security defines gig work, platform work and aggregators for the first time, and requires aggregators to contribute 1–2% of annual turnover, capped at 5% of the amount paid to gig and platform workers. Fixed-term employees become eligible for gratuity after one year of continuous service instead of five.

How it works

Labour is on the Concurrent List of the Constitution, so both the Central Government and the State Governments make rules under the Codes. The Centre fixes a floor wage, and States cannot set minimum wages below it. During the transition, the relevant provisions of the old Acts and their rules continue in force. The Codes provide for a single registration, single licence and single return, with States/UTs able to integrate their IT systems with Central systems; the registration of unorganised workers on e-Shram is covered on the Labour & Social Security page.

Outlook

State rules decide how the Codes apply in each State. By 18 July 2022, draft rules had been pre-published by 31 States/UTs under the Code on Wages, 26 under the Industrial Relations Code, 25 under the Social Security Code and 24 under the OSH Code. By 24 July 2025, 32 States/UTs had pre-published draft rules under the four Codes, while West Bengal and Lakshadweep had not pre-published under any. At a regional conference on 17 February 2026, the Secretary of the Ministry of Labour & Employment urged States/UTs to expedite the finalisation of their rules.

By the numbers

29 → 4 central labour laws rationalised into Codes (in force 21 Nov 2025). 8 Aug 2019 Code on Wages enacted as Act No. 29 of 2019. 23 Sep 2020 Parliament completes passage of the other three Codes. 32 States/UTs with draft rules under the four Codes (24 Jul 2025). 1–2% of annual turnover as aggregators' contribution for gig and platform workers. Sources: Ministry of Labour & Employment via PIB; Gazette of India.

Data current to: in force since 21 November 2025; State rules as of 17 February 2026

Source: Ministry of Labour & Employment via PIB, and the Gazette of India — the timeline dates the enactment of the four Labour Codes (2019 and 2020), draft rules pre-published by States/UTs (July 2022 and July 2025), the Codes coming into force on 21 November 2025 and a February 2026 review of State rules; the headline, 29 central labour laws rationalised into 4 Codes, is from the release of 21 November 2025 (linked). · link