Year End Review 5 E 8 93 Ministry of Labour Employment

Ministry of Labour & Employment Year End Review 2025 - Ministry of Labour & Employment Government Makes Four Historic Labour Codes Effective from 21 November 2025 Launch of Pradhan Mantri Viksit Bharat Rozgar Yojana - Rs. 99,446 Crore Incentive Package to Create 3.5 Crore Jobs Over 2 Years India Rises to Rank 2 Globally in Social Protection Coverage; Coverage Jumps to 64.3% EPFO Undertakes Major Digital Transformation - Auto- Settlement up to Rs. 5 Lakh, Centralised Pension System, FAT- Enabled UAN Activation ESIC Expands National Footprint to 713 Districts; Beds Increase Three-Fold to 87,715 in FY 2024-25 9,785 Job Fairs and 1.58 Lakh Selections through National Career Service (NCS) Portal in 2025 e-Shram Crosses 31.42 Crore Worker Registrations; Platform Worker Module Launched with 14 Aggregators Onboarded Posted On: 30 DEC 2025 2:32PM by PIB Delhi Implementation of Labour Codes In a historic decision, the Government of India has implemented four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 with effect from 21st November 2025, rationalising 29 existing labour laws. By modernising labour regulations, enhancing workers' welfare and aligning the labour ecosystem with the evolving world of work, Labour Codes implementation lays the foundation

for a future-ready workforce and stronger, resilient industries driving labour reforms for Aatmanirbhar Bharat. Major benefits of the four labour codes are given below: Common Provisions: Uniformity of Definitions: A key provision is the uniformity in definitions, ensuring uniformity across all codes. Web-based Inspection system: Use of technology such as web-based Inspection has been introduced in order to ensure transparency and accountability in enforcement. Inspectors are now Inspector-cum-Facilitators to support compliance and guide the employers and workers, eliminating "inspector raj." Provision of Compounding of offences is introduced. The codes also provide for de-criminalization of offences, replacing criminal penalties (like imprisonment) with civil penalties (like monetary fines) for first time offences. Simplified compliance: Single license, single registration, and single return system. No gender-based discrimination, including against transgender persons, in recruitment, wages or work conditions. Greater opportunities for women: Women allowed to work in all sectors, including night shifts (with consent and safety measures). Women must have proportional representation in Grievance Redressal Committees. 1. The Code of Wages, 2019 : o Minimum wages become a statutory right for all employees in every sector, organised or unorganised. o A Floor Wage is introduced, to be fixed by the Central Government; States cannot set minimum wages below the floor wage. o Rules on timely payment and no unauthorised deductions now apply to all employees, regardless of wage ceiling. o Employers must pay all employees overtime wages at least twice the wage rate for any work done beyond the working hours. 2. The Industrial Relations Code, 2020: Fixed Term Employment (FTE) introduced; FTE workers get all benefits equal to permanent workers, helping reduce excessive contractualization. A Re-skilling Fund is to be created; employers must contribute 15 days' wages per retrenched worker for retraining, in addition to retrenchment compensation. Formal recognition of trade unions ensured through the concepts of Negotiating Union and Negotiating Council for collective bargaining. o Model Standing Orders in service sector now permit work-from-home based on mutual agreement. o A Two-Member Industrial Tribunal (judicial + administrative) introduced for quicker dispute resolution. o The Code allows electronic records, registration, and communication, improving transparency and reducing paperwork.

3. The Code on Social Security, 2020 ESIC coverage expanded nationwide; voluntary membership allowed for establishments with fewer than 10 employees; mandatory coverage for hazardous industries even with a single worker. New definitions introduced: aggregator, gig worker, platform worker to cover emerging forms of employment. Provision for a Social Security Fund to provide Social Security Schemes covering life & disability, health, old-age benefits, etc. for unorganised, gig, and platform workers. A uniform definition of wages established (basic + DA + retaining allowance), to ensure higher social security benefits like gratuity, maternity benefit. Commute-related accidents now treated as employment-related, making employees eligible for compensation. Gratuity extended to Fixed Term Employees after one year of continuous service (instead of 5 years for regular employees). 4. The Occupational Safety, Health and Working Conditions Code 2020: The code provides for universal application of occupational safety, health and welfare standards in all establishments having 10 or more workers and even for establishments with one employee, carrying out hazardous or life-threatening occupations. Expanded definition of Inter-State Migrant Worker: Includes migrant workers employed by contractor, and also self-migrated workers; provides (a) annual lump-sum travel allowance, (b) portability of benefits and PDS to migrant workers and migrant construction-workers. Free annual health check-up for employees. Formalization through appointment letters: Every employee will be given appointment letters in the prescribed format. Broader coverage of working journalists and cine workers: Now includes electronic media and all audio-visual production workers. Single National OSH Advisory Board replaces multiple boards; this will set mandatory national standards for occupational safety and working conditions.

Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) Scheme: The Pradhan Mantri Viksit Bharat Rozgar Yojana was announced in the Union Budget 2024-25. Prime Minister Narendra Modi launched the Pradhan Mantri Viksit Bharat Rozgar Yojana on 15.08.2025 to support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector. Under the Scheme, while the first- time employees will get one month's wage (up to Rs 15,000/-), the employers will be given incentives for a period of up to two years for generating additional employment as per scheme guidelines, with extended benefits for another two years for the manufacturing sector. With an outlay of Rs 99,446 crore, the Pradhan Mantri Viksit Bharat Rozgar Yojana aims to incentivize the creation of more than 3.5 crore jobs in the country, over a period of 2 years. Out of these, 1.92 crore beneficiaries will be first timers, entering the workforce. The benefits of the Scheme would be applicable to jobs created between 01 August 2025 and 31 July, 2027. The Scheme consists of two parts with Part A focused on first timer employees and Part B focused on employers. st st

A dedicated dashboard for PMVBRY has been developed and made live for real-time monitoring and transparency. Progress so far: Total establishments registered on the PMVBRY portal: 2,35,459 Estimated Numbers of Beneficiaries (first time employees): 20,70,135 Estimated Numbers of Beneficiaries (employers): 1,63,994 International Labour Affairs: Social protection coverage has risen sharply from 19% in 2015 to 64.3% in 2025. Now India ranks 2nd in the World after China in providing social protection to its citizen. India has been conferred with the prestigious International Social Security Association (ISSA) Award 2025 for 'Outstanding Achievement in Social Security' on 3rd October, 2025 in Kuala Lumpur, Malaysia. Government of India signed an MoU on 16th September, 2025 with International Labour Organisation (ILO) to Advance International Reference Classification of Occupations' which in turn will help in International labour Mobility. Employees' Provident Fund Organisation (EPFO) EPFO has undertaken several process reforms: Auto settlement of withdrawals upto Rs. 5 lakh, dispensing with mandatory cheque/passbook uploading. Centralized Pension Payment System (CPPS) enabling Employee Pension Scheme (EPS) Pensioners to get pension from any bank, any branch, anywhere in India from January 2025. Simplification of PF transfer process by removing the need for employer and destination office approval in most cases. Central Board of Trustees (CBT), EPFO, in its meeting held on 13.10.2025, approved following reforms to enhance Ease of Living for its members by simplifying EPF withdrawals, streamlining litigation processes and accelerating digital transformation across the organization: i. The partial withdrawal provisions of the EPF Scheme have been simplified by merging 13 complex rules into a single, streamlined framework categorized into three types of Essential Needs (illness, education, marriage), Housing Needs, and Special Circumstances. ii. Withdrawal limits have been liberalized - education withdrawals allowed up to 10 times and marriage up to 5 times (from existing limit of total of 3 partial withdrawals for marriage & education in all). iii. Members can now withdraw up to 75% of their PF balance, including both employee and employer contributions, with the minimum service requirement of just 12 months for all types of partial withdrawals. iv. Vishwas Scheme approved as an alternative dispute resolution mechanism through a graded structure of penalties for settlement of penal damages. Under the Scheme, the rate of penal damages will be reduced to a flat rate of 1% per month, except for a graded rate of 0.25% for default up to 2 months and 0.50% for default up to 4 months. The scheme shall remain in operation for six months and is extendable by another six months. In another significant development, the Central Board also amended earlier flat rate of 1% per month notified on 14.06.2024 for default up to four months on similar graded rate. v. MoU with India Post Payments Bank (IPPB) to provide doorstep Digital Life Certificate

(DLC) services to EPS 95 pensioners. Employee Enrollment Campaign 2025 was launched w.e.f. from 1st Nov 2025 to 30th April 2026 by EPFO for increasing enrollment of employees with EPFO to enhance social security. The employer can declare, an employee who is alive and working with them since 01.07.2017 till 31.10.2025, but who could not be enrolled as member of EPF due to any reason. The penalty has been rationalized and now the employers availing this scheme are to pay a nominal Penal Damage of Rs. 100 only as a lump sum, a significant reduction from the standard penalties for non-compliance. Rate of Interest: The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees' Provident Fund Scheme, 1952 to credit interest @ 8.25% for the year 2024-25 to the account of each member of the EPF Scheme. Signing of Banking Agreement: EPFO entered into agreements with 15 additional banks, both in public and private sector, on 01.04.2025 to enable direct payment of annual collections and provide direct access to employers who maintain their accounts with these banks, to pay their monthly contributions. EPFO has already empaneled 17 banks, and with the addition of these 15 banks, the total number has gone up to 32 banks. The agreement with the banks were signed in the august presence of Union Labour & Employment Minister, Dr. Mansukh Mandaviya. Allotment and activation of UAN through UMANG APP using FAT: The entire process of allotment and activation of UAN made more robust through UMANG APP using Face Authentication Technology (FAT). The following facilities have been introduced in the UMANG APP for Employees/Members: - I. Direct UAN Allotment and Activation. II. UAN Activation for Existing UANs. III. Face Authentication Service for Existing Activated UANs. There would be no requirement for initiation of UAN activation process afresh with this facility. The facility enables the members immediate access to EPFO services such as passbook viewing, KYC updated, claim submission etc. Advance under Para 68B (7) of EPF Scheme, 1952 based on self-declaration: In order to facilitate members to avail advance under Para 68B (7) of EPF Scheme, 1952 - which provides for advances towards additions, substantial alterations or improvements necessary to the dwelling house owned by the member or by the spouse or jointly by the member and the spouse - a Circular dated 17.04.2025 was issued. Members can now avail this advance based on a self-declaration confirming that the claim is made only after 60 months from the date of completion of the dwelling house and without linking to previous withdrawal. Bulk generation of UAN in certain special cases: A software functionality has been made available to the Field Offices for bulk generation of UANs in special cases. To ensure proper accounting of Past Accumulations remitted to EPFO by Exempted PF Trusts - a) consequent to the surrender/cancellation of exemption and, b) also, in other cases involving remittance of past period contributions consequent to quasi-judicial/recovery proceedings, it has been decided to relax the requirement of Aadhaar for generation of UAN/credit of Past Accumulations for such members.