114th International Labour Conference (ILC)

The Union Minister of State for Labour and Employment led the Indian delegation at the 114th International Labour Conference (ILC) in Geneva, where India highlighted its labour reforms, expansion of social protection, and achievements in Digital Public Infrastructure (DPI).

However, despite the enactment of the four Labour Codes, concerns remain regarding weak implementation, inadequate enforcement, and limited protection for the vast informal and gig workforce, leaving millions of workers outside the effective social security net.

Summary

India showcased its progress in labour reforms, improved employment indicators, and wider social security coverage through initiatives such as the e-Shram Portal, National Career Service Portal, and the Labour Codes.

Nevertheless, challenges such as weak implementation, wage stagnation, lack of protection for gig workers, limited collective bargaining rights, and insufficient social security mechanisms continue to expose structural vulnerabilities in India's labour market.

What are the Key Highlights of India’s Address at the 114th ILC?

Consolidation of Labour Laws

India emphasized that its labour reforms are guided by the principle of "Antyodaya" (upliftment of the weakest sections). Under this approach, 29 Central Labour Laws were consolidated into four modern Labour Codes to simplify compliance procedures while strengthening worker welfare.

Improvement in Employment and Employability Indicators

Youth Employability

India highlighted that youth employability increased from 34% in 2014 to over 56% in 2025, reflecting improvements in skilling and employment opportunities.

Declining Unemployment Rate

The unemployment rate reportedly declined from 6% in 2017 to 3.1% in 2025, indicating better labour market performance.

Rising Female Labour Force Participation

Women's workforce participation increased significantly from 22% to 38.8%, demonstrating greater female inclusion in economic activities.

Expansion of Social Protection Coverage

India informed the International Labour Organization (ILO) that social protection coverage expanded from 19% in 2015 to 64.3% in 2025, covering nearly 1 billion people according to ILO estimates.

This expansion has been supported by various welfare initiatives and digital platforms aimed at integrating informal workers into formal social protection systems.

Digital Public Infrastructure (DPI) as Soft Power

India showcased the National Career Service Portal and the e-Shram Portal as successful examples of Digital Public Goods (DPGs) that can be replicated globally.

India also offered technical assistance to countries such as Rwanda and Sri Lanka for developing similar workforce formalisation and labour-market information systems.

International Labour Mobility

India emphasized a whole-of-government approach towards linking domestic skilling initiatives with international employment opportunities.

The country is also collaborating with the ILO on developing an international reference classification of occupations to improve global labour mobility.

New Employment Initiatives

India highlighted the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana, which aims to accelerate employment generation and strengthen labour market participation.

International Labour Conference (ILC)

About the ILC

The International Labour Conference (ILC) is the highest decision-making body of the International Labour Organization (ILO) and is often referred to as the "International Parliament of Labour."

It meets annually in Geneva, Switzerland, to formulate global labour standards and discuss major issues concerning the world of work.

Unique Tripartite Structure

Unlike most international organisations, the ILC follows a tripartite structure, where each member country sends:

• Two Government Delegates

• One Employer Delegate

• One Worker Delegate

Each delegate enjoys independent voting rights, ensuring balanced representation of governments, employers, and workers.

The Four New Labour Codes

Code on Wages, 2019

The Code universalises minimum wages and ensures timely wage payments across both organised and unorganised sectors.

Industrial Relations Code, 2020

The Code streamlines industrial dispute resolution mechanisms, modifies trade union recognition procedures, and changes rules governing layoffs, retrenchment, and closure of establishments.

Code on Social Security, 2020

The Code expands the coverage of EPFO and ESIC and, for the first time, provides a legal framework for including gig workers and platform workers within the social security architecture.

Occupational Safety, Health and Working Conditions (OSH) Code, 2020

The OSH Code regulates workplace safety and explicitly addresses the concerns of inter-state migrant workers and contract labourers.

Why Does the Indian Workforce Remain Vulnerable Despite Labour Reforms?

Gig Workers Remain in a Legal Grey Zone

Although the Social Security Code, 2020 recognises gig and platform workers, it does not classify them as regular employees.

Consequently, they remain outside the ambit of the Industrial Relations Code and the OSH Code, depriving them of rights related to minimum wages, collective bargaining, and workplace safety protections.

Algorithmic Management and Digital Exploitation

Workers in the delivery and logistics sectors increasingly operate under algorithm-driven systems, where automated ratings, opaque allocation mechanisms, and changing incentive structures determine earnings and work opportunities.

Platform companies often alter payment structures unilaterally, reducing worker incomes without effective grievance redressal mechanisms.

Higher Thresholds for Layoffs and Closures

The Industrial Relations Code, 2020 increased the threshold requiring government permission for layoffs and closures from 100 workers to 300 workers.

Critics argue that this creates a more flexible "hire and fire" regime, reducing job security for workers in small and medium-sized enterprises.

Ambiguity Regarding Working Hours

Although the OSH Code prescribes a 48-hour work week, it provides limited clarity on daily working hours and rest intervals.

This ambiguity has enabled some employers to impose 12-hour shifts under flexible work arrangements without adequately compensating overtime work.

Weakening of Collective Bargaining

The new labour framework requires a trade union to secure support from 51% of workers to become the sole negotiating representative.

Additionally, the requirement of a 60-day notice period before strikes and restrictions during conciliation proceedings reduce the effectiveness of collective labour action.

Limited Applicability of Workplace Safety Regulations

The OSH Code applies primarily to establishments employing 10 or more workers, thereby excluding a large segment of India's informal economy and micro-enterprises from statutory workplace safety requirements.

Challenges in Translating e-Shram Data into Welfare Benefits

Although the e-Shram Portal has successfully registered millions of informal workers, converting this digital database into actual benefits such as healthcare, pensions, and financial assistance remains inconsistent across states.

Inflation-Induced Wage Erosion

India's minimum wage system consists of a base wage component and a Variable Dearness Allowance (VDA) linked to the Consumer Price Index for Industrial Workers (CPI-IW).

Between 2021 and 2026, inflation significantly increased, but many states delayed revisions to base wages, resulting in substantial erosion of real incomes.

Socio-Economic Pressures on Migrant Workers

Inter-state migrant workers continue to face rising urban rents, food inflation, and increased living costs, which have outpaced wage growth and intensified economic insecurity.

What Measures Can Strengthen Labour Welfare?

Create a Separate Category for Platform Workers

India should move beyond the traditional distinction between employees and independent contractors by introducing a "Dependent Contractor" category, similar to emerging international practices.

Such a framework can ensure minimum earnings and social protection without disrupting platform-based business models.

Replicate the Rajasthan Model

The Rajasthan Platform-Based Gig Workers Act, 2023 offers a potential template by establishing welfare boards and imposing welfare cess mechanisms on digital platforms.

Similar initiatives could be expanded nationally.

Promote Digital Compliance Mechanisms

Digital wage payments, electronic employment records, and data-driven monitoring systems can improve compliance while reducing excessive dependence on traditional inspection-based enforcement.

Strengthen Welfare Integration through e-Shram

The e-Shram database should be integrated with schemes such as:

• One Nation One Ration Card (ONORC)

• Ayushman Bharat

• PM-SYM (Pradhan Mantri Shram Yogi Maandhan)

Such convergence can ensure faster delivery of welfare benefits to vulnerable workers.

Revive the Indian Labour Conference

Regular meetings of the Indian Labour Conference (ILC) can strengthen tripartite dialogue among governments, employers, and labour unions and facilitate more inclusive policymaking.

Conclusion

India's labour reforms through the Four Labour Codes represent an important step towards improving economic competitiveness and labour market efficiency. However, the success of these reforms ultimately depends on extending social security, fair wages, and decent working conditions to the country's vast informal and gig workforce.

Achieving the vision of Viksit Bharat 2047 requires balancing labour market flexibility with worker welfare so that economic growth translates into inclusive, equitable, and sustainable development