Paper: GS – I, Subject: Society and Social Justice, Topic: Social sector – Human resources, Issue: Labour Code Reform.
Context:
India’s labour codes consolidate outdated laws to expand social security, redefine wages, and include gig and informal workers. They aim to improve financial inclusion, income stability, and long-term protection while supporting inclusive, demand-driven economic growth.
Key Highlights:
Key Aspects of the Labour Codes:
Reform of Wage Definition: The codes redefine wages, mandating that at least 50% of total remuneration must consist of basic pay, dearness allowance, and retaining allowance. This change aims to increase social security contributions and benefits.


India’s labour codes aim to improve financial inclusion and worker empowerment by expanding gratuity, social security, and legal protections. They promote fair value distribution from capital to labour, modernise labour governance, and support inclusive, equitable growth through effective implementation.
Source: (The Hindu)
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