Quick answer: The four Labour Codes merged 29 central labour laws into four: the Code on Wages, 2019 and the Industrial Relations, Social Security and OSH Codes of 2020. They came into force on 21 November 2025, and the Central Rules were notified on 8 May 2026. Labour is in the Concurrent List, so both the Centre and the states make rules under the Codes.
These are exam-focused notes on India's new Labour Codes for UPSC Civil Services (GS Paper 2 and 3), the UPSC EPFO exams and other competitive exams. They cover the background, the constitutional basis, the laws each Code replaced, the numbers most often asked, the arguments for and against, and practice questions. For a fuller explanation of each provision, see our complete guide to the new Labour Codes.
Constitutional basis
Labour is mainly a Concurrent List subject in the Seventh Schedule, so both Parliament and state legislatures can make laws on it (Career Launcher):
- Entry 22: trade unions; industrial and labour disputes.
- Entry 23: social security and social insurance; employment and unemployment.
- Entry 24: welfare of labour, including conditions of work, provident funds, pensions and maternity benefits.
This is why each Code lets the "appropriate government", Centre or state, notify its own rules. The Central Rules apply to central-sphere establishments; states notify rules for the rest.
Background: why the Codes were made
The Second National Commission on Labour, chaired by Ravindra Varma, submitted its report on 29 June 2002. It recommended consolidating India's many labour laws into a few codes, grouped by function (V.V. Giri National Labour Institute). The government's stated aims for the four Codes are simpler compliance, wider social security coverage and modernised laws (PIB, 21 November 2025).
Timeline
- 29 June 2002Second National Commission on Labour submits its report.
- 8 August 2019Code on Wages, 2019 notified.
- 29 September 2020Industrial Relations, Social Security and OSH Codes notified.
- 21 November 2025All four Codes come into force.
- 30 December 2025Draft Central Rules published for comment.
- 16 February 2026Industrial Relations Code (Amendment) Act, 2026 receives assent, with effect from 21 November 2025.
- 8 May 2026Final Central Rules notified under all four Codes.
The four Codes and the laws they replaced
The OSH Code merged the most laws
Number of central laws each Code replaced (29 in total)
Source: PIB, India's Labour Reforms, 21 November 2025.
Code on Wages, 2019 (4 laws)
Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965; Equal Remuneration Act, 1976.
Industrial Relations Code, 2020 (3 laws)
Trade Unions Act, 1926; Industrial Employment (Standing Orders) Act, 1946; Industrial Disputes Act, 1947.
Code on Social Security, 2020 (9 laws)
Employee's Compensation Act, 1923; Employees' State Insurance Act, 1948; Employees' Provident Funds and Miscellaneous Provisions Act, 1952; Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959; Maternity Benefit Act, 1961; Payment of Gratuity Act, 1972; Cine-Workers Welfare Fund Act, 1981; Building and Other Construction Workers' Welfare Cess Act, 1996; Unorganised Workers' Social Security Act, 2008.
OSH Code, 2020 (13 laws)
Factories Act, 1948; Plantations Labour Act, 1951; Mines Act, 1952; Working Journalists and Other Newspaper Employees Act, 1955; Working Journalists (Fixation of Rates of Wages) Act, 1958; Motor Transport Workers Act, 1961; Beedi and Cigar Workers Act, 1966; Contract Labour (Regulation and Abolition) Act, 1970; Sales Promotion Employees Act, 1976; Inter-State Migrant Workmen Act, 1979; Cine-Workers and Cinema Theatre Workers Act, 1981; Dock Workers (Safety, Health and Welfare) Act, 1986; Building and Other Construction Workers Act, 1996.
Key facts and numbers for prelims
| Topic | What the Codes say |
|---|---|
| Definition of wages | Basic pay, DA and retaining allowance. If excluded allowances exceed 50% of total pay, the excess is added back to wages. |
| Floor wage | Set by the Centre; no state can fix a minimum wage below it. No floor wage amount has been notified yet. |
| Layoff, retrenchment, closure | Prior government permission needed at 300 or more workers (earlier 100). States can raise the threshold. |
| Strikes and lock-outs | Notice required within 60 days before, and no strike within 14 days of notice, in every industrial establishment (Section 62). |
| Negotiating union | A union with 51% membership is the sole negotiating union; otherwise a negotiating council of unions with at least 20% each. |
| Re-skilling fund | Employer pays 15 days' wages per retrenched worker, credited to the worker within 45 days. |
| Fixed-term employees | Gratuity after 1 year of service (earlier 5 years). |
| Gig and platform workers | Aggregators contribute 1% to 2% of annual turnover, capped at 5% of payments to these workers. |
| ESIC | Coverage extended across India, with no "notified area" condition. |
| Factory definition | 20 workers with power (earlier 10), 40 without power (earlier 20). |
| Working hours | 8 hours a day, 48 hours a week; overtime at twice the wage rate, with consent. |
| Women at night | Can work before 6 am and after 7 pm, with consent and safety measures. |
| Inter-state migrants | Annual lump-sum travel allowance to the native place, and portability of benefits. |
Sources: PIB; strike notice under Section 62 as summarised by Taxmann. The working detail is in the Central Rules 2026, and the official texts are on our Labour Codes PDF page.
Arguments for and against (for Mains)
The government's case
- Fewer, simpler laws: 29 Acts replaced by four Codes, with single registration and returns.
- A statutory minimum wage for all workers, not only scheduled employments, with a national floor wage.
- Social security extended to gig and platform workers for the first time.
- Formal appointment letters, free annual health check-ups for specified workers, and women's right to work night shifts with safeguards.
Opposition and debated provisions
- Ten central trade unions opposed the Codes when they took effect and called protests (Al Jazeera, 22 November 2025). They followed with a nationwide strike on 12 February 2026, calling the Codes "pro-employer" (Business Standard).
- The changes most often debated: the layoff permission threshold rising from 100 to 300 workers, easier hiring and firing, longer factory shifts and night work for women.
- Strike notice now applies to every industrial establishment, where earlier it applied only to public utility services.
- Fixed-term employment is allowed in all sectors.
Implementation issues
- Because labour is a Concurrent subject, the Codes work only when states notify their rules. As of 24 September 2026, the Labour Secretary said 10 states had published rules (Business Standard).
- Gig worker benefits depend on schemes still to be framed, and the floor wage has not been notified.
Practice questions for Mains
These are practice questions written for revision, not past-year questions.
- "The Labour Codes balance ease of doing business with workers' welfare." Critically examine. (250 words)
- Discuss how the Code on Social Security, 2020 extends social security to gig and platform workers, and the challenges in implementing it. (150 words)
- Labour is a Concurrent List subject. How does this affect the implementation of the four Labour Codes? (150 words)
Practice MCQs
1. How many central labour laws were merged into the four Labour Codes?
(a) 25 (b) 29 (c) 32 (d) 44
Answer: (b) 29.
2. Which Labour Code was notified first?
(a) Industrial Relations Code (b) Code on Social Security (c) Code on Wages (d) OSH Code
Answer: (c) Code on Wages, notified on 8 August 2019.
3. Under the Industrial Relations Code, prior government permission for layoff is required in establishments with at least how many workers?
(a) 100 (b) 200 (c) 300 (d) 500
Answer: (c) 300.
4. Labour-related entries such as trade unions and social security are placed in which list of the Seventh Schedule?
(a) Union List (b) State List (c) Concurrent List (d) None
Answer: (c) Concurrent List (Entries 22 to 24).
5. What is the contribution of aggregators towards social security for gig and platform workers?
(a) 1% to 2% of annual turnover, capped at 5% of payments to such workers (b) 5% of turnover (c) 12% of wages (d) A flat fee per worker
Answer: (a).
6. Which Code replaced the Factories Act, 1948?
(a) Code on Wages (b) Industrial Relations Code (c) Code on Social Security (d) OSH Code
Answer: (d) OSH Code, 2020.
For more practice, take the Labour Codes quiz.
Related: pros and cons of the Labour Codes, Labour Codes latest news and state-wise Labour Code rules tracker.
Preparing for UPSC or EPFO? Test yourself with the free Labour Codes quiz. For a deeper understanding, the free course on salary calculation under the new Labour Codes explains the wage definition with worked examples (optional certificate ₹299), and the New Labour Codes practical guide (eBook) covers all four Codes.
Frequently asked questions
What are the four Labour Codes for UPSC?
The Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020. Together they replaced 29 central labour laws.
When did the new Labour Codes come into force?
On 21 November 2025. The Central Rules under all four Codes were notified on 8 May 2026.
In which list of the Constitution is labour?
Mainly the Concurrent List, under Entries 22, 23 and 24 of the Seventh Schedule. Both the Centre and the states can legislate and make rules.
Which commission recommended consolidating labour laws into codes?
The Second National Commission on Labour, chaired by Ravindra Varma, which submitted its report on 29 June 2002.
Which Code has the most laws merged into it?
The OSH Code, 2020, which replaced 13 laws including the Factories Act, 1948 and the Contract Labour Act, 1970.
Position as of 30 October 2026. Exam notes for revision; for the law itself, refer to the official texts. Not legal advice.