New labour codes: From wages to safety, what MSME workers will gain

New labour codes are set to empower workers with more favorable policies.

The Centre’s overhaul of labour laws, through the implementation of four consolidated labour codes, has introduced key changes for workers in micro, small and medium enterprises (MSMEs), including guaranteed minimum wages, better workplace facilities and expanded social security coverage.

Under the new rules, all MSME workers are now covered by the Social Security Code, with eligibility based on employee numbers. Minimum wages are mandatory across establishments, and workers are entitled to standard working hours, paid leave and double wages for overtime. Employers must also ensure timely wage payments and provide basic facilities such as canteens, drinking water and rest areas.

The Code on Wages, Industrial Relations Code, Code on Social Security and the Occupational Safety, Health and Working Conditions (OSHWC) Code came into effect on November 21. Together, they replace 29 central labour laws.

The Centre has called the rollout of the labour codes a “historic” step, saying the new framework updates India’s labour regulations, boosts worker protections and equips the workforce for a rapidly evolving economy. It said the overhaul moves the country beyond “fragmented, outdated” laws dating back to the pre- and early post-Independence period, aligning India with modern global labour standards.

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According to the government, the consolidation of labour laws is aimed at empowering both workers and enterprises, enabling a “protected, productive and future-ready workforce” and supporting more resilient and competitive industries.