Statsguru: Labour pain may give birth to a new era with new Codes

The new codes, consolidating 29 laws, promise enhanced social security for gig workers and women, amid data showing rising wages but high wealth inequality

The government has made four labour Codes effective from November 21, covering wages, industrial relations, social security, and occupational safety.  These codes consolidated 29 existing labour laws. However, the full implementation of these Codes would depend on the introduction of rules, regulations, and forms by the Centre and states. The government claims these reforms will enhance workers’ welfare, including women and gig workers’, and strengthen and make more resilient industries.  

 

Annual wages per worker rose 1.3 times, while the factory output was up 1.7 times in the six years ended 2023. Labour income, including social security and income of the self-employed, also rose 1.7 percentage points in proportion to the country’s gross domestic product during the period. 

 

Compared to the pre-pandemic period, average weekly working hours declined steadily from Q3 2019 to Q2 2024. 

 

India ranks 21st among 190 countries with the highest mean average weekly working hours globally. 

 

The number of registered trade unions in India increased from 12,392 in 2016 to 37,638 in 2021, but fell to 27,586 in 2022. 

 

Women bore the brunt of unemployment in cities. 

 

The top 10 per cent of the population holds over 65 per cent of total wealth, while the bottom 50 per cent controlled just 6.4 per cent in 2022.