On May Day, a workforce in India without a floor

India's four Labour Codes — the Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020, and the Occupational Safety, Health...

What Happened

India's four Labour Codes — the Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020, and the Occupational Safety, Health and Working Conditions (OSH) Code 2020 — were notified as effective from November 21, 2025, rationalising 29 existing central labour laws.
Critics and labour researchers observe that despite the consolidation, large sections of India's informal workforce remain effectively outside the ambit of enforceable wage protections, particularly as states have varied timelines for notifying their own rules under the codes.
On May Day 2026, commentaries from workers in labour-intensive sectors — including construction, furnace work, and street vending — highlighted the gap between the codes' formal provisions and on-ground implementation.
The central government has published draft Central Rules under the four Labour Codes (December 2025) and invited public objections; several states are yet to finalise their own rules, creating a patchwork implementation landscape.
Trade unions contend that provisions allowing fixed-term contracts, easier retrenchment thresholds, and weakened strike notice requirements in the Industrial Relations Code disproportionately benefit employers.

Static Topic Bridges

The Four Labour Codes: Structure and Coverage

Parliament enacted four codes to consolidate and simplify 29 central labour laws into a coherent framework. The codes are: (1) Code on Wages, 2019 — covering minimum wages, payment of wages, bonus, and equal remuneration; (2) Industrial Relations Code, 2020 — covering trade unions, standing orders, and dispute resolution; (3) Code on Social Security, 2020 — covering EPFO, ESIC, gratuity, maternity benefit, and gig/platform workers; (4) OSH Code, 2020 — covering safety standards and working conditions. Together, they apply to both organised and unorganised sectors, though enforcement and thresholds vary.

29 central labour laws merged into 4 codes
Effective date (central): November 21, 2025
Earlier, the Minimum Wages Act applied only to "scheduled employments" — covering roughly 30% of the workforce
The Code on Wages extends minimum wage applicability to all employees regardless of sector
India's informal/unorganised sector accounts for approximately 90% of the total workforce
As of July 2023, over 28.96 crore workers registered under the eShram portal for unorganised worker database

Connection to this news: The May Day commentary reflects the tension between the codes' expanded statutory reach and the lived reality of workers in sectors where enforcement infrastructure remains weak.

Floor Wage Mechanism Under the Code on Wages

Section 9 of the Code on Wages, 2019 mandates the Central Government to fix a statutory floor wage based on minimum living standards, which can vary by geographical area. No State or UT can set minimum wages below this floor. This represents a departure from the old Minimum Wages Act, where state-set wages could theoretically fall to minimal levels for non-scheduled employments. The floor wage concept aims to create a nationwide wage baseline beneath which no worker can be paid.

Floor wage is set by the Central Government; states cannot fix minimum wages below it
Considers: skill level (unskilled, semi-skilled, skilled, highly skilled), geographical area, and job conditions (temperature, humidity, hazardous environments)
Working hours capped at 8–12 hours/day, 48 hours/week; overtime to be consent-based at double the normal wage rate
Wage slip issuance mandatory for all workers, including in the unorganised sector
Wage payment protections now apply to all employees, removing the earlier Rs 24,000/month ceiling

Connection to this news: The floor wage, while formally legislated, requires Central Government notification with a specific amount — critics argue that without fixing an adequate floor and enforcing it, millions of workers remain without an effective wage guarantee.

Industrial Relations Code and Worker Rights

The Industrial Relations Code, 2020 replaces the Trade Unions Act (1926), Industrial Employment (Standing Orders) Act (1946), and Industrial Disputes Act (1947). Key changes include: the threshold for requiring prior government permission before layoffs/retrenchment/closures is raised from 100 to 300 workers; fixed-term employment is formalised as a category with the same benefits as permanent workers but without job security; and the notice period for legal strikes is extended to 60 days (from 14 days in public utilities, now applicable to all industries).

Retrenchment threshold raised: Establishments with fewer than 300 workers (up from 100) can retrench without prior government permission
Fixed-term employment: Formalised but no guarantee of regularisation
Strike notice: 60-day notice required before a legal strike — significantly longer than earlier provisions
Trade unions must have at least 10% membership or 100 workers (whichever is less) for recognition

Connection to this news: Trade unions argue that the raised retrenchment threshold and extended strike notice requirements structurally weaken workers' bargaining power, particularly in small and medium enterprises.

Key Facts & Data

Four Labour Codes effective from: November 21, 2025
Laws consolidated: 29 central labour laws into 4 codes
India's unorganised sector workforce: approximately 90% of the total workforce (~44 crore workers as of 2019-20 data)
Floor wage mechanism: introduced under Section 9, Code on Wages, 2019
Prior minimum wage coverage: only "scheduled employments" (~30% of workforce)
New coverage: all employees in all sectors, organised and unorganised
Retrenchment permission threshold: raised from 100 to 300 workers under Industrial Relations Code
Strike notice period: extended to 60 days across all industries
eShram registrations (unorganised workers): over 28.96 crore as of July 2023
Draft Central Rules published: December 30, 2025 (in gazette, inviting objections)