New labour codes to increase formalisation 15%, says SBI report

SBI expects India's four new labour codes to boost formalisation 15%, extend social security to 85%, and create 7.7M jobs, though costs and state rules may affect results

The recently notified four new labour codes will boost formalisation of the labour force by at least 15 per cent and increase social sector coverage to 85 per cent, highlighted a report by the State Bank of India (SBI) on Tuesday.

 

Besides, the new codes are also estimated to generate 7.7 million new jobs and reduce the unemployment rate by 1.3 per cent over the medium term, thus resulting in a consumption boost of approximately Rs 75,000 crore.

 

“The implementation of new labour codes will empower both workers and enterprises, building a workforce that is protected, productive and aligned with