New Labour Codes boost worker benefits, give gig workers legal recognition

By Naveen Kapoor
New Delhi [India], November 21 : India's new Labour Codes, aimed at replacing 29 existing labour laws, are expected to significantly improve worker welfare while extending formal protections to gig and platform workers for the first time. The four Codes introduce uniform wage rules, stronger safety standards and simplified compliance for employers across sectors.
Under the new framework, all workers will be entitled to minimum wages, salary credit by the 7th of each month, double wages for overtime, and mandatory appointment letters. Workers will also receive free annual health check-ups, and Fixed Term Employees will become eligible for gratuity after one year of continuous service.
Women workers gain expanded rights including equal pay, consent-based night-shift employment with enhanced safety measures, 26 weeks of paid maternity leave, and broader opportunities across manufacturing, mining, services and IT.
In a major shift, gig and platform workers such as delivery partners, ride-hailing drivers and other app-based workers receive legal recognition for the first time. Aggregator platforms will contribute up to 5 per cent to a Social Security Fund, making insurance, accident compensation and other benefits portable across states.
Prime Minister Narendra Modi welcomed the reforms in a post on X.
"India's new Labour Codes strengthen the rights of every worker--formal, informal and gig. These reforms ensure better wages, safety, and dignity for our workforce. A major stride towards Viksit Bharat," he said.
Union Labour Minister Mansukh Mandaviya also wrote on X: "For the first time, gig and platform workers are recognised in India's labour framework. The new Codes guarantee minimum wages, timely payments, social security and safer workplaces for all sections of workers."
States such as Gujarat, Maharashtra, Andhra Pradesh and Uttar Pradesh that implemented similar reforms earlier have reported higher investments, increased formal employment and faster industrial growth.
Reforms can also be seen in the context of India's bid to diversify and boost investments amid an increasingly competitive global environment and tariff-related disruptions worldwide.
Labour and trade unions, however, have given a mixed response. Left-leaning and Congress-affiliated unions remain critical of parts of the reform package, signalling that the government may face resistance as implementation progresses.