New Labour Law Codes: Did you think India’s labour market is stuck in deadlock? SBI says think again!
The bank’s latest report shows that the government’s new labour reforms could shake things up in a big way. By merging 29 old laws into four sleek codes, these reforms are not just paperwork, they are set to boost jobs, formalise work, and bring millions under social security.
So now, imagine more people earning securely, fewer worrying about paychecks, and the economy getting a much-needed shot in the arm. Curious how this could change your daily grind or your neighbour’s job? Now keep watching how India’s workforce is about to get a serious upgrade!
Employment Generation Potential With The New Labour Law Codes: Key Highlights
- Unemployment Reduction: The new labour codes could cut unemployment by up to 1.3%, opening doors for millions of job seekers.
- Additional Employment: This translates to 77 lakh new employment opportunities across the country. Could your cousin, neighbour, or friend benefit?
- Labour Force Participation: Based on the current participation rate of 60.1% for people aged 15+, across rural and urban areas.
- Working-Age Population: Average working-age population considered is 70.7%, reflecting India’s potential workforce ready to contribute.
Labour Market Set To Soar: SBI Predicts Growth, Formalisation, And A Spending Surge
Benefits For Unorganised Sector Workers
Currently, around 44 crore people work in India’s unorganised sector, with nearly 31 crore registered on the e-Shram portal.
If 20% of these workers move to formal payroll, about 10 crore individuals could gain improved job security, social protection, and employment benefits.
Social security coverage is expected to reach 80-85% in the next 2–3 years.
Read More: new labour codes, India labour reforms 2025, employment generation India
Empowering Workers And Enterprises
The implementation of the four labour codes is designed to empower both workers and enterprises, creating a protected, productive workforce aligned with the evolving world of work.
Overview Of The Four Labour Codes
The reforms, effective from 21 November 2025, merged 29 existing labour laws into four comprehensive codes to simplify regulations and improve workplace governance:
- The Code on Wages, 2019
- The Code on Social Security, 2020
- The Occupational Safety, Health and Working Conditions Code, 2020
- The Industrial Relations Code, 2020
(With Inputs From ANI)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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