Labour Codes can significantly boost women's workforce participation in India: Report

Dec 13, 2025

New Delhi [India], December 13 : The recently notified four labour Codes, effective from November 21, 2025, have the potential to meaningfully expand women's participation in the workforce by making employment safer, more secure and more accessible, according to a white paper released by the All India Organisation of Employers (AIOE) in collaboration with law firm Shardul Amarchand Mangaldas.
Titled "Breaking the Glass Ceiling: How the Labour Codes Boost Women's Participation in India's Workforce", the white paper noted that India's legal framework has evolved alongside social change, reflected in the rise in the female labour force participation rate from 23.3 per cent in 2017-18 to 41.7 per cent in 2023-24.
This progress, according to the white paper, has been supported by women-centric laws such as the Maternity Benefit Act, 1961 and the Sexual Harassment of Women at Workplace Act, 2013, as well as government initiatives including Mission Shakti, NAVYA and WISE-KIRAN.
The white paper further argued that the labour Codes modernise India's employment law framework by consolidating multiple legacy laws into a simpler and more coherent structure.
This, it noted, is particularly significant for women, as the reforms aim to make workplaces safer, social security broader and compliance more predictable.
One of the key outcomes of the Codes is their potential to expand women's participation across sectors by making work more sustainable and secure, rather than merely creating new opportunities
Under the Social Security Code, 2020, maternity protections remain robust, with 26 weeks of paid leave continuing for eligible employees and 12 weeks for adoptive and commissioning mothers.
The white paper also highlighted that measures such as nursing breaks, medical support and simplified proof requirements for pregnancy and delivery are critical in reducing the economic and health disruptions that often force women to permanently exit the workforce.
The white paper also drew attention to the expansion of Employees' State Insurance coverage across all industries and districts, including plantations, which employ a large number of women workers.
The inclusion of gig and platform workers within the social security framework is described as a forward-looking shift, particularly for women who rely on flexible work arrangements to balance caregiving responsibilities.
Further, the Occupational Safety, Health and Working Conditions Code allows women to work in all establishments, including traditionally restricted sectors and night shifts, subject to consent and adequate safety arrangements. This is seen as a transformative provision for sectors such as IT, healthcare, aviation and logistics, removing an "invisible ceiling" on women's earnings and advancement.
While emphasising the promise of the reforms, the white paper cautioned that legislation alone will not deliver change. Real impact, it argued, will depend on implementation by employers, responsiveness of markets and the effectiveness of supporting institutions.