India, Nov. 25 -- The Cost Of Labour Reforms

After years of delays, the Centre, last week, finally undertook sweeping labour reforms. 29 fragmented laws were replaced by four codes, designed to expand social safety nets for gig workers and standardise employer obligations. So, what's this new unified framework?

Towards Formalisation: The new norms promise formal recognition and portable benefits, linked to Aadhaar, to millions of Indian gig workers. Aggregators are also now required to contribute 1-2% of their annual turnover, capped at 5% of payouts, into a central welfare fund.

Combined with expanded PF and ESIC coverage and mandatory overtime at double rates, gig platforms collectively face over INR 1,500 Cr in additional annual cos...