India is set for major changes in its labor and employment system, with the government fast-tracking the implementation of four key labor codes.
After a five-year wait, these reforms aim to ensure minimum wages, universal social security, and a more modern workplace framework.
Four Labor Codes to Come into Full Effect in 2026
The Labour Ministry has announced that the four labor codes, which consolidate 29 outdated labor laws, will become fully effective in 2026 once the regulations are issued.
These codes are designed to simplify and modernize labor regulations, making workplaces more predictable, transparent, and fair for employees.
In addition, the ministry plans to launch EPFO 3.0 in 2026.
This upgrade will speed up PF withdrawals, simplify pension settlements, and streamline insurance claims under the Employees’ Deposit Linked Insurance Scheme.
These changes aim to make social security more accessible for millions of workers.
Transforming India’s Labor Market
Union Labor Minister Mansukh Mandaviya described 2025 as a transformative year for labor reforms.
He explained that in 2026, the government will focus on technology-driven services, effective implementation on the ground, and enforcement of labor codes.
These efforts are expected to create a modern, inclusive, and formal labor market across India.
Under the Vikas Bharat Rojgar Yojana, the government targets creating 3.5 crore jobs in two years with an investment of around ₹1 lakh crore.
Social security coverage has also increased from 19% a decade ago to over 64% today, reflecting the country’s growing focus on worker welfare.
Digital platforms like the e-Shram portal and National Career Service are helping millions of workers access employment services and social security benefits.
Opposition and Support
Despite widespread reforms, several central trade unions have opposed the labor codes, calling them anti-worker.
The Joint Forum of Central Trade Unions has announced a nationwide strike on February 12, 2026, and warned of stricter protests if the government proceeds with rule notifications.
On the other hand, industry representatives support the reforms.
According to the Confederation of Indian Industry (CII), the labor codes will improve worker welfare, ease of doing business, and prepare India’s labor system for the future.
