Labour codes to push social security cover to 85% in 3 yrs: SBI Research

THE IMPLEMENTATION OF the four new labour codes will boost social security coverage to 85% in next 2-3 years and would generate additional employment for 7.7 million people, a report by the State Bank of India Research said on Tuesday. It, however, cautioned about the possibility of short-run frictions followed by medium-run gains as compliance costs fall and formal hiring expands.

- KULDEEP SINGH

The government enforced four labour codes namely 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 last week with an objective to align with global trends and empower both workers and enterprises.