After a long wait of five years, the government has set in motion the four labour codes, which will be fully operationalised in 2026 with publication of rules ensuring minimum wage and universal social security for all workers in the country. The labour ministry has also planned to bring in EPFO 3.0 version in 2026, which will ensure speedy withdrawal of employees' provident fund as well as fixation of pension under the Employees' Pension Scheme 1995 and insurance claims under Employees' Deposit Linked Insurance Scheme 1976. Talking to PTI, Union Labour & Employment Minister Mansukh Mandaviya said 2025 has been truly transformative for India's labour and employment ecosystem, marked by reforms that place workers at the centre of governance. A defining landmark of the year was the coming into effect of the four Labour Codes from November 21, 2025, modernising and consolidating 29 labour laws into a simplified, contemporary framework, he noted. "Looking ahead to 2026, the focus will
Labour Minister Mansukh Mandaviya on Thursday dismissed concerns that the recently enforced labour codes would encourage hire & fire and inspector raj, and said the new laws will formalise employment while inspectors will be facilitators. Under the new codes, government permission is not required for layoff, retrenchment and closure of units with workers' strength of up to 300. Earlier, units with up to 100 workers did not require such permission. Addressing the Times Network India Economic Conclave, Mandaviya said, "We have formalised employment in the country with increasing the number of workers to 300 per unit, which was earlier 100." Earlier employers used to provide formal employment to 100 workers to avoid legal hassles and the rest were employed informally, he said. He said new codes have formalised employment of the left-out workers and they will get all benefits that an enrolled employee gets. On concerns about encouraging inspector raj by increasing compliance burden, .
Former labour secretary, Sumita Dawra, decodes the new labour codes, in a conversation with Nivedita Mookerji, executive editor, Business Standard, and AK Bhattacharya, editorial director,
In July 2024 the group's logistics services unit was accused of circumventing labour and tax laws
It's a relief that the four new labour laws that New Delhi has brought in, after delaying them for five years for fear of political backlash, haven't gone that far
The Centre has notified implementation of four labour codes, including new provisions for gig workers. But definitions, enforcement capacity and state rules may decide how far benefits reach
Labour Minister Mansukh Mandaviya said draft rules under four new labour codes will be pre-published soon, with full implementation and social security coverage expected by April 2026
The Cabinet Secretariat is conducting a deregulation exercise to enhance ease of doing business across 23 priority areas
The retirement fund body EPFO has disposed of nearly 99 per cent of the applications, seeking higher contributions for getting higher pension under the Employees' Pension Scheme (EPS) 1995, Parliament was informed on Monday. Minister of State for Labour & Employment Shobha Karandlaje stated in a written reply to Lok Sabha that the EPFO has taken action to implement the directions issued in the Supreme Court Judgement on November 4, 2022 in a time-bound manner. An online facility was provided and a total 17.49 lakh applications for validation of joint options were successfully submitted by pensioners/ members till last date i.e. July 11, 2023 out of which around 15.24 lakh applications were forwarded by employers to Employees' Provident Fund Organisation (EPFO) till last date i.e. January 31, 2025, she informed the House. As on November 24, 2025, nearly 99 per cent of applications received in EPFO have been disposed of, she also stated. As per her reply, a total of 4,27,308 demand
India's new labour Codes promise sweeping reform, but weak state capacity, patchy data, and political risk may once again turn ambitious legislation into uneven, middling execution
Take-home pay may dip temporarily, expect retirement savings to rise
The new laws are expected to create 7.7 million additional jobs and bring down unemployment by as much as 1.3 per cent over the medium term, according to a Nov 25 report by SBI Research
Gurnani said that the labour ministry will republish the draft rules soon and give 45 days' time for public consultation
Kerala Labour Minister V Sivankutty on Thursday made it clear that the Centre's Labour Codes would not be implemented in the state. Speaking to reporters here, Sivankutty said that the majority of the states have taken steps to implement the labour codes, but not Kerala. The minister further said that the Union Labour Ministry had called a meeting of all the states last month and there, Kerala had clearly indicated its stand that it would not implement the labour codes. When reporters asked whether the state succumbed to central pressure to prepare the draft regulations linked to the labour codes, he denied it. "If we were succumbing to central government pressure, we would have given a letter accepting the codes. we have not done that," he said. The draft regulation was notified in the state on December 14, 2021. He also asserted that the draft regulations were not prepared in secret. "It was done openly and I recommended in the file that public opinion be sought regarding it.
Reportedly, the centre is in works to come up with the rules under the new codes by the first week of December, following which there will be a 45 day window for stakeholder consultations
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
While the Centre is expected to publish the draft rules and notify them in due course, state governments have made significant moves
India's textile sector says new labour codes will strengthen compliance with due-diligence norms and enhance global competitiveness
The Indian IT/ITeS sector is one of the largest employment generating sector. The industry is expected to have an employee base of 5.8 million in FY26, according to UnearthInsights
Developers expect short-term cost and timeline pressures, but say unified labour laws will bring predictability, better compliance and steadier workforce availability