India's Labour Codes: A New Era of Workforce Reforms

In 2026, India will fully operationalize its four Labour Codes, a significant reform consolidating 29 legacy laws, enhancing workers' welfare and formalization. This initiative seeks to expand social protection and employment while facing opposition from union groups calling it anti-worker.

After a five-year wait, the Indian government is set to fully implement its four Labour Codes by 2026, which promises minimum wage and universal social security for all workers. The initiative marks a significant reform in consolidating 29 labour laws into a simplified framework.

Union Labour & Employment Minister Mansukh Mandaviya highlighted 2025 as transformative for India's labour sector, as these codes aim to modernize workforce regulation and enhance ease of business. However, central trade unions have criticized the reforms, planning a strike against what they see as anti-worker policies.

Despite opposition, the government has reinforced its stance on a more formalized labour market, supported by the Pradhan Mantri Viksit Bharat Rozgar Yojana to create 3.5 crore jobs. This agenda is complemented by EPFO 3.0 and digital platforms, ensuring a robust social security network.

(With inputs from agencies.)