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 be on deepening the reforms through technology-driven service delivery and effective on-ground implementation. Equally important will be the operationalisation of the rules under the Labour Codes.
“Once implemented, these rules will translate the legislative framework into actionable outcomes at the workplace level, bringing greater clarity, uniformity and predictability for workers and employers alike. This will further accelerate India’s transition towards a modern, formal and inclusive labour market,” Mandaviya said.
These codes represent the most comprehensive reforms in the history of India’s labour sector, aimed at ensuring workers’ welfare, promoting formalisation and boosting employment, he noted.
Complementing this reform agenda, he further stated that the Pradhan Mantri Viksit Bharat Rozgar Yojana, with an outlay of nearly Rs 1 trillion, is designed to incentivise the creation of 3.5 crore jobs over the next two years.
As a result of sustained policy focus, India’s social protection coverage has expanded from 19 per cent a decade ago to over 64 per cent today, which is a milestone that has also been recognised by the International Social Security Association, he noted.
Significant improvements in the functioning of the Employees’ Provident Fund Organisation (EPFO), particularly the simplification of withdrawal processes, have enhanced ease of living and ensured quicker, more seamless access to savings for crores of members, he noted.
Alongside this, the minister stated India’s digital public infrastructure for labour — including the e-Shram portal and the National Career Service platform — has reached unprecedented scale, strengthening the delivery of social security and employment services.
These initiatives have also drawn international recognition for their inclusiveness and use of technology to serve workers at scale. Together, these reforms lay a strong foundation for a future-ready workforce and a Viksit Bharat, he noted.
He said a key priority will be EPFO 3.0, which aims to further modernise systems and enhance member convenience, including enabling further simplification of eligible provident fund withdrawals.
However, certain central trade unions have opposed labour codes and termed it anti-worker demanding their rollback.
Earlier in a meeting held on December 22, 2025, a Joint Platform of Central Trade Unions (CTUs) and sectoral federations/associations resolved to call a general strike on February 12, 2026 against the Labour Codes and the multi-pronged attack by the central government on the people’s rights and entitlements.
The strike date will be formally ratified at the National Workers’ Convention to be held on January 9, 2026 in the national capital, as per a joint statement issued on December 23, 2025.
The unions have said the Labour Codes have been notified, and the government is trying to utilise all of its institutional machinery, media, and public sector managements to build a positive consensus around these codes.
But the workers are determined to fight against the unilateral imposition by the government and get the codes repealed, they have stated.
“If the government still tries to pursue the notification of rules under the codes and does not repeal the codes, the central trade unions will be compelled to go for further strong actions, including a multiple-day general strike, besides sectoral resistance actions,” they have said in the statement.
Arvind Goel, Co-Chair, CII National Committee on Industrial Relations & Labour, President Employers’ Federation of India (EFI), and Vice Chairman, Tata AutoComp Systems Ltd, told PTI, “The year 2025 marks a watershed moment in India’s labour reform journey. In a milestone decision, the Government of India has announced the implementation of the four Labour Codes on November 21, 2025.”
By subsuming and rationalising 29 legacy labour laws, these Codes usher in dynamic reforms that modernise labour regulation, strengthen workforce well-being, and simultaneously advance ease of doing business, he opined.
He further stated that the Labour Codes, social-security expansion, and employment-linked schemes signal overall progress toward a future-ready labour ecosystem.
With reduced compliance burden, modern work arrangements, and stronger protection, India is simultaneously advancing workforce well-being and ease of doing business, he noted.
The CII & EFI’s continued collaboration with the Ministry of Labour and Employment will remain vital in translating these landmark reforms into on-ground outcomes, he added.
