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Labour codes

GS-IIGovernment Policies & Interventions

Note

Twenty-nine central labour laws have been consolidated into four codes: the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety Health & Working Conditions Code 2020. They simplify compliance, extend social security to gig and platform workers, and redefine concepts like 'worker', 'fixed-term employment', and 'threshold' for applicability. Because labour is a Concurrent List subject, states must frame their own rules before the codes take effect — raising issues of cooperative federalism, ease of doing business, and worker protection.

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Economy, Industry & AgriculturePRS Legislative Research

Code on Wages (Central) Rules, 2026 ↗

Economy, Industry & AgriculturePRS Legislative Research

Industrial Relations (Central) Rules, 2026 ↗

Questions on this topic

From 24 October 2026The Hindu — Sci-Tech

Consider the following statements regarding India's Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) and the broader framework of the four Labour Codes in the context of agricultural and informal food-sector workers:Answer ▾
  1. The Occupational Safety, Health and Working Conditions Code, 2020 extends its coverage to agricultural workers employed on farms, making the detailed hazard-management provisions equally applicable to the unorganised agricultural sector as to factories.
  2. Under the Code on Social Security, 2020, gig and platform workers are recognised as a distinct category eligible for social security benefits, whereas agricultural workers in the unorganised sector are covered through a separate and distinct welfare fund mechanism.
  3. The Code on Wages, 2019 mandates a statutory floor wage applicable to all workers — including those in agriculture — which must be taken into account by the Central and State governments while fixing minimum wages, thereby providing a wage-floor guarantee to informal agricultural workers.

Which of the statements given above is/are correct?

Correct

Incorrect. The answer is B

Explanation

Statement 1 is incorrect. The OSH Code, 2020 primarily applies to establishments, factories, mines, docks, building and construction work, and plantations above a threshold size. Agricultural workers working on farms — who constitute the vast majority of informal agricultural labour — are not substantively brought under the detailed hazard-management, welfare, and working-condition provisions of the OSH Code. The Code explicitly excludes or does not extend most provisions to the unorganised agricultural sector in the same manner as organised industry. This is a major gap in Indian occupational safety law that activists and experts have repeatedly flagged. Statement 2 is correct. The Code on Social Security, 2020 is notable for formally recognising gig workers and platform workers as distinct categories and creating a mechanism for their social security (administered through a separate fund). Simultaneously, it provides for welfare of unorganised workers — including agricultural workers — through the recognition and administration of separate welfare boards and funds (continuing the legacy of the Unorganised Workers' Social Security Act, 2008). These are genuinely separate and distinct mechanisms within the same Code. Statement 3 is correct. The Code on Wages, 2019 introduces the concept of a 'floor wage' — a national-level minimum below which no State or Central government may fix minimum wages for any scheduled employment, including agriculture. This floor wage applies across all workers regardless of sector, providing a legal minimum wage floor to informal and agricultural workers who were previously subject to widely varying and often inadequate State-level minimum wages. This is a structurally significant reform because it addresses one of the core vulnerabilities of informal agricultural labour — poverty wages — by inserting a non-negotiable wage floor into the legal framework.

From PRS Legislative Research

Consider the following statements regarding the Industrial Relations Code, 2020:Answer ▾
  1. The Industrial Relations Code, 2020 consolidates three pre-existing labour laws: the Industrial Disputes Act, 1947; the Trade Unions Act, 1926; and the Industrial Employment (Standing Orders) Act, 1946.
  2. Under the Industrial Relations Code, 2020, the state government is the appropriate government for establishments such as railways, banks, and mines.

Which of the statements given above is/are correct?

Correct

Incorrect. The answer is D

Explanation

Statement 1 is correct. The Industrial Relations Code, 2020 is a consolidating legislation that replaced three historic labour laws: the Industrial Disputes Act, 1947 (which governed industrial dispute resolution), the Trade Unions Act, 1926 (which governed trade union formation and registration), and the Industrial Employment (Standing Orders) Act, 1946 (which governed conditions of employment). This consolidation is a central feature of India's Second-Generation Labour Reforms. Statement 2 is incorrect. The Code designates the central government — not state governments — as the appropriate government for establishments such as railways, banks, and mines. These are sectors that fall under the Union List or are of national strategic importance. The state government is the appropriate government only for all other establishments not specifically enumerated under the central government's jurisdiction.

From PRS Legislative Research

Consider the following pairs regarding the four Labour Codes enacted by the central government through consolidation of existing labour laws:Answer ▾
  1. Code on Wages, 2019 — replaces the Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965; and Equal Remuneration Act, 1976
  2. Industrial Relations Code, 2020 — regulates wage and bonus payments in all employments in which any trade, industry, business or manufacturing is carried on
  3. Code on Social Security, 2020 — one of the four Labour Codes into which 29 labour laws were consolidated

Which of the pairs given above is/are correctly matched?

Correct

Incorrect. The answer is B

Explanation

The Code on Wages, 2019 is correctly described in Pair 1 — it replaces exactly four pre-existing laws: the Payment of Wages Act (1936), the Minimum Wages Act (1948), the Payment of Bonus Act (1965), and the Equal Remuneration Act (1976), and it regulates wage and bonus payments across all employments involving trade, industry, business, or manufacturing. Pair 2 is incorrectly matched: the description of regulating wage and bonus payments in all employments where trade, industry, business, or manufacturing is carried on belongs to the Code on Wages, 2019 — not to the Industrial Relations Code, 2020. The Industrial Relations Code, 2020 deals with matters such as trade unions, industrial disputes, and conditions of employment, not wage and bonus regulation. Pair 3 is correctly matched: the Code on Social Security, 2020 is indeed one of the four Labour Codes into which the central government consolidated 29 labour laws (the other three being the Code on Wages 2019, the Industrial Relations Code 2020, and the Occupational Safety, Health, and Working Conditions Code 2020).

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