India Labour Reform Impact: Social Security Expansion

The Government of India has implemented the four Labour Codes from 21 November 2025, replacing 29 existing labour laws to modernise regulation, strengthen worker welfare and simplify compliance.

Social-security coverage has expanded from 19% in 2015 to over 64% in 2025, with nationwide ESIC access, including units with just 1 worker in hazardous processes.

The Codes guarantee minimum wages, timely payments, mandatory appointment letters, free annual health check-ups for workers above 40, and women allowed to work across all sectors, including night and hazardous shifts.

Gig and platform workers receive formal recognition and welfare contributions, while fixed-term employees gain gratuity eligibility after 1 year and parity with permanent staff.

Compliance is simplified through a single licence, single registration and single return framework, supported by two-member Industrial Tribunals and an Inspector-cum-Facilitator model for faster dispute resolution.