Labour Codes Set to be Fully Operational in India
The Indian government has initiated four labour codes, consolidating 29 legacy laws, to ensure minimum wage and universal social security coverage. Union Labour Minister Mansukh Mandaviya announced their implementation, focusing on technology-driven service delivery. The government also launched the Pradhan Mantri Viksit Bharat Rozgar Yojana with a ₹1 lakh crore outlay, aiming to create 3.5 crore jobs. EPFO 3.0 is planned to revolutionize employee benefit services. However, central trade unions oppose the codes, calling for a general strike. Industry representatives view the codes as progressive, modernizing labour regulation and improving ease of doing business.
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The Indian government has initiated the implementation of four labour codes that are expected to be fully operationalised with the publication of comprehensive rules. This initiative aims to ensure minimum wage and universal social security coverage for all workers across the country, potentially marking a significant transformation in India's labour landscape.
Labour Codes Implementation Framework
Union Labour & Employment Minister Mansukh Mandaviya announced that the four Labour Codes have come into effect, representing comprehensive reforms in India's labour sector history. These codes modernise and consolidate 29 legacy labour laws into a simplified, contemporary framework designed to enhance workers' welfare, promote formalisation, and boost employment opportunities.
| Implementation Details | Specifications |
|---|---|
| Legacy Laws Consolidated | 29 labour laws |
| Primary Focus | Minimum wage and universal social security |
The minister emphasized that the focus will be on deepening reforms through technology-driven service delivery and effective ground-level implementation. The operationalisation of rules under the Labour Codes is expected to translate the legislative framework into actionable workplace outcomes, potentially bringing greater clarity, uniformity, and predictability for both workers and employers.
Employment Generation and Social Security Expansion
Complementing the labour code reforms, the government has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana with a substantial financial commitment. This employment-focused initiative demonstrates the government's comprehensive approach to labour market transformation.
| Employment Initiative | Details |
|---|---|
| Scheme Name | Pradhan Mantri Viksit Bharat Rozgar Yojana |
| Financial Outlay | Nearly ₹1 lakh crore |
| Job Creation Target | 3.5 crore jobs |
Mandaviya highlighted that India's social protection coverage has expanded from 19% a decade ago to over 64% today. This achievement has received recognition from the International Social Security Association, reflecting the progress in extending social security benefits to a broader workforce.
EPFO Modernisation and Digital Infrastructure
The labour ministry plans to introduce an EPFO 3.0 version, which aims to revolutionise employee benefit services. This upgraded system is intended to ensure speedy withdrawal of employees' provident fund, streamline pension fixation under the Employees' Pension Scheme 1995, and expedite insurance claims under the Employees' Deposit Linked Insurance Scheme 1976.
Significant improvements in EPFO functioning, particularly the simplification of withdrawal processes, have enhanced ease of living and ensured quicker access to savings for crores of members. The minister noted that India's digital public infrastructure for labour, including the e-Shram portal and National Career Service platform, has reached unprecedented scale, strengthening social security and employment service delivery.
Trade Union Opposition and Planned Strike
Despite government enthusiasm, central trade unions have strongly opposed the labour codes, terming them anti-worker and demanding their complete rollback. A Joint Platform of Central Trade Unions and sectoral federations has resolved to call a general strike against the Labour Codes.
| Strike Details | Information |
|---|---|
| Organising Body | Joint Platform of Central Trade Unions |
The unions stated that workers are determined to fight against the unilateral imposition by the government and seek code repeal. They warned that if the government pursues rule notification under the codes without repealing them, central trade unions may undertake stronger actions, including multiple-day general strikes and sectoral resistance actions.
Industry Perspective and Future Outlook
Arvind Goel, Co-Chair of CII National Committee on Industrial Relations & Labour and President of Employers' Federation of India, described the labour reform journey as a significant moment. He emphasized that the Labour Codes usher in dynamic reforms that modernise labour regulation, strengthen workforce well-being, and advance ease of doing business simultaneously.
Goel noted that the combination of Labour Codes, social security expansion, and employment-linked schemes signals overall progress toward a future-ready labour ecosystem. With reduced compliance burden, modern work arrangements, and stronger protection, India is advancing both workforce well-being and business facilitation. The continued collaboration between CII, EFI, and the Ministry of Labour and Employment remains vital for translating these landmark reforms into ground-level outcomes.
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