Gig workers recognised in law for the first time as new Labour Codes take effect

India’s new Labour Codes, which replace 29 existing labour laws, are expected to significantly enhance worker welfare while extending formal protections to gig and platform workers for the first time. The four Codes introduce uniform wage rules, stronger safety standards and simplified compliance for employers across sectors.

Under the new framework, all workers will be entitled to minimum wages, salary credit by the 7th of every month, double wages for overtime and mandatory appointment letters. Workers will also receive free annual health check-ups, while Fixed Term Employees will become eligible for gratuity after one year of continuous service.

Women workers gain expanded rights, including equal pay, consent-based night shifts with enhanced safety measures, 26 weeks of paid maternity leave and broader opportunities across manufacturing, mining, services and IT.

In a major shift, gig and platform workers — such as delivery partners, ride-hailing drivers and other app-based workers — will receive legal recognition for the first time. Aggregator platforms will contribute up to 5 per cent to a Social Security Fund, making insurance, accident compensation and other benefits portable across states.

Prime Minister Narendra Modi welcomed the reforms in a post on X, stating that the new Labour Codes “strengthen the rights of every worker — formal, informal and gig,” calling them “a major stride towards Viksit Bharat.”

Union Labour Minister Mansukh Mandaviya also wrote on X that gig and platform workers have been recognised in India’s labour framework for the first time, adding that the Codes ensure minimum wages, timely payments, social security and safer workplaces for all sections of workers.

States such as Gujarat, Maharashtra, Andhra Pradesh and Uttar Pradesh—which implemented similar reforms earlier—have reported higher investments, increased formal employment and faster industrial growth.

(ANI)

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