Future of Work: India’s Youth Face New Realities Under Labour Codes: India’s Youth Face New Realities Under Labour Codes

India’s Labour Codes, which came into force in November 2025, mark the most sweeping overhaul of the country’s labour laws since Independence and are set to significantly shape the future of work for India’s vast youth population. By consolidating 29 central labour laws into four comprehensive Codes, the reforms aim to simplify compliance for employers, promote formalisation of employment, and extend social security coverage to millions of workers.

The four Labour Codes — the Code on Wages, the Industrial Relations Code, the Occupational Safety, Health and Working Conditions Code, and the Code on Social Security — seek to strike a balance between labour market flexibility and worker protection. Policymakers argue that the new framework will improve ease of doing business, attract investment, and generate employment, especially for young job seekers entering the workforce.

A key promise of the reforms is the universalisation of minimum wages across sectors, ensuring a statutory wage floor for all workers, including those in unorganised employment. The Codes also seek to expand access to social security benefits such as provident fund, health insurance, and maternity benefits, with special emphasis on gig workers, platform workers, and contract labour — categories that employ a growing share of India’s youth.

However, experts caution that a major challenge lies in bridging gaps in coverage and implementation. Despite the intent to extend benefits, large sections of young workers remain outside formal employment relationships, particularly in the gig economy, small enterprises, and informal urban services. Without effective enforcement mechanisms and adequate registration of workers and employers, the promised social protection may remain uneven.

Trade unions have raised concerns that greater flexibility in hiring and firing under the Industrial Relations Code could weaken job security, especially for young and first-time workers. On the other hand, industry bodies have welcomed the reforms, saying streamlined regulations and simplified compliance will encourage formal hiring and reduce reliance on informal contracts.

As India’s demographic dividend hinges heavily on its young workforce, the success of the Labour Codes will depend on how well they translate on the ground — ensuring decent wages, safe working conditions, and social security, while also supporting enterprise growth and job creation. The coming years will be critical in determining whether the new labour regime can truly deliver inclusive and sustainable employment for India’s youth.