New Labour Law 2025 - Summary
Empowering workers is essential for building a strong, prosperous, and self-reliant India. India’s job market has grown well—employment increased from 47.5 crore in 2017–18 to 64.33 crore in 2023–24, adding 16.83 crore new jobs in six years. The unemployment rate also fell from 6.0% to 3.2%, and 1.56 crore women joined the formal workforce. This shows the Government’s focus on inclusive development. With more jobs and lower poverty, the labour market is supporting a positive social and economic change.
Workers play a major role in the country’s growth. To make labour rules simpler and stronger, the Government combined 29 old labour laws into four Labour Codes—the Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020), and Occupational Safety, Health and Working Conditions Code (2020). These reforms help workers get better security, dignity, health, and welfare benefits, and support a modern and fair labour system in India.
Formulation of 4 Labour Codes for New Sram Kanun 2025
- Code 1: The Code of Wages, 2019
- Code 2: The Industrial Relations Code, 2020
- Code 3: The Code on Social Security, 2020
- Code 4: The Occupational Safety, Health and Working Conditions Code 2020
India’s new Labour Codes make labour laws simpler, fairer, and more in tune with today’s work environment. They protect workers’ rights, improve safety and social security, make it easier for businesses to comply with rules, and create more job opportunities in a growing economy. The enacted Labour Codes bring out following transformations in the labour market:
- Align labour laws with the current economic scenario by modernizing regulations in accordance with evolving work patterns, technological advancements, and economic realities.
- Ensure the safety, health, social security, and wage security of every worker through a unified and comprehensive framework encompassing all categories of workers.
- Enhance employment opportunities by simplifying procedures and fostering a business-friendly environment that promotes investment and economic growth.
- Facilitate easier compliance by introducing uniform definitions, single registration, single return, and simplified online systems for seamless adherence.
- Encourage the use of technology in the administration of labour laws through digital registration, licensing, and inspections for improved efficiency and transparency.
- Strengthen transparency and accountability in enforcement through online, risk-based inspection mechanisms and objective implementation processes.
- Achieve simplification, harmonization, and rationalization of the regulatory framework by consolidating multiple labour laws into four comprehensive Codes, ensuring consistency and reducing administrative burden.