Why in the news
The Economic Survey 2024-25 argued that recent labour reforms can start a “virtuous cycle of job creation”, combining growth with protection for workers.
Key facts
- Outdated rules: the Survey criticises old laws such as the Factories Act, 1948, which even prescribes details like toilet-room designs and the material for toilet paper.
- New labour codes aim at simpler compliance and more flexible labour while keeping worker protections intact and improving job prospects.
- Overtime: India’s limit under the Factories Act is only 75 hours per quarter; seven states have amended laws to allow up to 144 hours per quarter to lift worker earnings.
- Post-pandemic recovery and greater formalisation are cited as positives for the labour market.
Overtime limits compared
| Country / case | Overtime per quarter |
|---|
| India (Factories Act, 1948) | 75 hours |
| Seven Indian states (amended) | up to 144 hours |
| Malaysia | 312 hours |
| Germany | 351 hours |
Women’s employment
- Safety arrangements for night shifts.
- 26 weeks of maternity leave extended to gig and informal workers.
- Crèche facilities mandatory where more than 50 people are employed.
- Equal pay for equal work and no gender bias in hiring.
- Entry to all sectors, including hazardous work, with proper safeguards.
Wage trends since 2017-18
| Group | Change in real wages |
|---|
| Self-employed men | down 9.1% |
| Self-employed women | down 3.2% |
| Salaried men | down 6.4% |
| Salaried women | down 12.5% |
| Casual workers (men) | 19.2% (reported as an increase) |
| Casual workers (women) | 24% (reported as an increase) |
Exam angle
- Law named for overtime cap: Factories Act, 1948 (75 hours per quarter).
- Maternity leave figure for gig and informal workers: 26 weeks.
- Crèche rule threshold: more than 50 employees.