Law and statutory body
Four Labour Codes (in force 21 November 2025)
GS2 Social Justice and LabourGS3 EconomyPrelims and Mains
- Why in news
- On 5 February 2026, the Labour Ministry told the Rajya Sabha that the four Labour Codes, in force since 21 November 2025, extend wage, social security and safety protections to organised and unorganised workers.
- What it is
- The VVGNLI study, 'The Implementation of Labour Codes: A Perception-based Analysis', records what workers and employers think of the four Labour Codes. It is an opinion survey of the initial phase, not a measure of actual outcomes. VVGNLI, at Noida, is the Labour Ministry's research institute on labour issues.
- Study
- VVGNLI's perception-based analysis covers the initial phase of implementation of the Labour Codes.
- Method
- Workers were reached by one-on-one interviews and focus groups. Employers' views came from chambers of commerce, federations and industry associations.
- Worker views on social security
- 68% of workers welcome e-Shram and Welfare Boards for easier access, and 63% see greater portability for contract, migrant and gig workers.
- Timeline
- The Codes were enacted in 2019-2020 and notified nationwide on 21 November 2025.
- Institute
- V.V. Giri National Labour Institute is based at Noida and works under the Ministry of Labour & Employment.
- The four codes
- Wages 2019, Industrial Relations 2020, Social Security 2020, and Occupational Safety, Health and Working Conditions 2020.
- ESIC coverage
- Mandatory for establishments with more than 10 employees, voluntary for smaller ones, and covers even one employee in hazardous processes.
- EPFO coverage
- EPFO provisions apply to all establishments with 20 or more employees.
- Social Security Fund
- A fund will be set up to frame schemes for unorganised, gig and platform workers.
- Re-Skilling Fund
- A Workers' Re-Skilling Fund is provided for retrenched workers.
- Constitutional basis
- Labour and trade unions are in the Concurrent List (Seventh Schedule), so Centre and states both legislate.
Don’t confuse with Perception survey vs impact assessment: This study records opinions in the early phase. It does not measure actual changes in wages, coverage or compliance.
Don’t confuse with EPFO vs ESIC: EPFO runs provident fund, pension and insurance; ESIC gives medical, sickness and maternity cover. Their coverage thresholds differ (20 vs 10 employees).
Don’t confuse with Social Security Fund vs Re-Skilling Fund: The first funds schemes for unorganised and gig workers; the second supports retrenched workers.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- Early feedback from both workers and employers supports the case for the reforms in simplifying compliance and widening social security.
- Extends social security and minimum wage rights to unorganised, gig and platform workers.
- Merges many laws, easing compliance and formalising jobs through appointment letters.
- Gives women equal access to all work, including night shifts, with safeguards.
Problems
- A perception survey can reflect expectations rather than outcomes, and its sample and design limit how far it can be generalised.
- Labour is on the Concurrent List, so uneven state rules may blunt uniform implementation.
- Labour is a Concurrent subject, so uneven state rules may delay uniform implementation.
- Funding and registering a large informal and gig workforce is hard.
- Trade unions fear weaker protection in retrenchment and strike provisions.
Way forward
- Undertake phased state-level impact studies, especially in states with earlier similar reforms, for evidence-based review and peer learning.
- Strengthen capacity building and awareness campaigns.
- Align state rules quickly and build a unified portal for registration and portability of benefits.
- Ensure the Social Security Fund is adequately financed, with clear aggregator contributions.
- Consult unions and employers regularly and monitor outcomes.
Put in your answer
Social Security Fund: A dedicated fund to design schemes for unorganised, gig and platform workers.
Migrant worker provisions: Inter-State Migrant Worker definition widened to include self-migrated workers, with travel allowance and portability of benefits.
Concurrent List: Labour sits in the Concurrent List, which shapes Centre-state implementation.
- 2024Mains GS3 · Q11Merits and demerits of the four Labour Codes; progress so far
- 2013Mains GS4 · Q11Child labour norms in hazardous firecracker industry; minimum age debate.
- 2015Mains GS3 · Q8Make in India success depends on Skill India and radical labour reforms
- 2017Prelims Q24Factories Act 1881 purpose; N.M. Lokhande and labour movement statements
- 2022Prelims Q71Which body compiles data on industrial disputes, closures, retrenchments, lay-offs
- 2015Prelims Q29Which body brings out the CPI for Industrial Workers
- 2026Prelims Q64Which international labour conventions are not ratified by India?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The four Labour Codes came into effect on 21 November 2025.
- 2.Under the Labour Codes, EPFO provisions apply to all establishments employing 20 or more employees.
- 3.ESIC coverage is mandatory for all establishments irrespective of the number of employees.
Which of the statements given above is/are correct?
True or false?
1 of 5
Statements the way Prelims prints them. Say first, then see the fact.
1.Under the Labour Codes, EPFO provisions apply to establishments employing 20 or more employees.
True. EPFO threshold is 20 or more employees.
2.ESIC coverage is mandatory for all establishments irrespective of the number of employees.
False. Mandatory for establishments with more than 10 employees; voluntary for fewer; one employee if hazardous process.
3.Women may work at night in all establishments only if the employer alone consents.
False. Night work is allowed subject to the woman's consent and safety.
4.The Labour Codes subsume the Minimum Wages Act, 1948, the Payment of Wages Act, 1936 and the Payment of Bonus Act, 1965 within the Code on Wages.
True. The Code on Wages subsumes these Acts (along with the Equal Remuneration Act, 1976).
5.Labour is a subject in the Union List, so states have no role in making laws on it.
False. Labour is in the Concurrent List, so both Centre and states legislate.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2027: most news questions come within two years of the event.