The Union Labour Ministry has officially pre-published the draft Rules for India’s four major Labour Codes. As of January 2, 2026, a 45-day window for public feedback is open. These codes—covering Wages, Social Security, Industrial Relations, and Occupational Safety—aim to replace 29 complex colonial-era laws with a unified modern framework.
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1. Code on Wages: Scientific Minimum Wage
The draft rules introduce a precise “Consumption Unit” formula to calculate the National Floor Wage, ensuring it reflects the actual cost of living.
| Category | Requirement per Standard Family (Earner + Spouse + 2 Kids) |
| Calorie Intake | 2,700 calories per day per adult consumption unit. |
| Clothing | 66 meters of cloth per family per year. |
| Housing | 10% of the total food and clothing expenditure. |
| Education/Med | 25% of the minimum wage for education, recreation, and medical needs. |
| Fuel/Power | 20% of the minimum wage for electricity and miscellaneous items. |
50% Wage Rule: The rules define “wages” as basic pay, dearness allowance, and retaining allowance. If other allowances exceed 50% of the total salary, the excess will be added back to “wages” for PF and gratuity calculations, likely increasing take-home pay for low-wage workers but raising costs for employers.
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2. Code on Social Security: Protecting Gig Workers
For the first time, “gig” and “platform” workers (like those at Zomato or Uber) are formally recognized.
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National Social Security Board: A dedicated board will include 5 representatives from gig/platform workers (on rotation).
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Mandatory UAN: Every worker must have an Aadhaar-linked Universal Account Number (UAN) to ensure benefits like insurance and health cover are portable across jobs.
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Aggregator Contribution: Platforms will contribute 1-2% of their turnover to a social security fund for these workers.
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3. Occupational Safety & Health (OSH) Code
This code focuses on the physical well-being of the workforce and modernizes shift work.
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Working Hours: Capped at 48 hours per week. Overtime must be paid at double the normal wage rate.
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Night Shifts for Women: Permitted between 7 PM and 6 AM subject to:
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Written Consent: Employers must obtain it from the employee.
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Safety Infrastructure: Mandatory CCTV in passages/common areas and well-lit workspaces.
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Free Transport: Door-to-door pick-up and drop-off facility.
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Health Check-ups: Employers must provide free annual medical exams for all workers over 40 years old in factories, mines, and construction.
4. Industrial Relations (IR) Code
The IR code streamlines how businesses and unions interact, introducing Fixed-Term Employment (FTE).
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FTE Benefits: Workers on fixed contracts now get the same wages and social security as permanent workers. Crucially, they qualify for gratuity after 1 year of service (instead of the usual 5).
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Thresholds: The requirement for prior government permission for layoffs or closures has been raised to establishments with 300+ workers (up from 100), providing more flexibility to mid-sized firms….
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