New labor codes to come into effect from April 1
What's the story
The Ministry of Labor and Employment is mulling over the implementation of new Labor Codes from April 1. The proposed date coincides with India's financial year, as the changes in salary structures under these codes could lead to increased contributions toward provident funds and gratuity. This would ultimately affect companies' balance sheets.
Policy adjustment
Ministry considers reducing work threshold for gig workers
Along with the proposed implementation date, the Ministry is also considering reducing the mandatory work threshold for gig workers. Currently, a worker has to work at least 90 days with a single aggregator or 120 days across multiple platforms in a financial year to get benefits such as health, life and accident insurance under the Code on Social Security, 2020.
Rule notification
Final rules for labor codes to be notified soon
On December 31, 2025, the Ministry of Labor and Employment notified draft rules for the Code on Wages, Code on Social Security, Industrial Relations Code, and the Code on Occupational Safety, Health and Working Conditions. The ministry has invited comments from all stakeholders on these draft rules within a period of 30-45 days. After this period, final rules will be notified.
Employment boost
Implementation of labor codes to boost formal employment
The four new Labor Codes were enacted on November 21, 2025. However, they will only come into force once the final rules are notified by the ministry or a separate notification is issued by the government. The implementation of these codes is expected to give a major boost to formal employment creation in India.
Registration success
SPREE scheme registers over 1 crore new employees
The Ministry's Scheme to Promote Registration of Employers/Employees (SPREE) has seen over 1 crore new employees registered under the Employees's State Insurance Corporation (ESIC). The scheme, which runs from July 1, 2025 to January 31, 2026, provides a one-time opportunity for employers and employees who may have been inadvertently left out from ESI coverage to register without concern for retrospective coverage or punitive action.