Ministry
Ministry of Labour and Employment
The Ministry of Labour and Employment is the Union government's department for the terms of work: it drafts and enforces labour law, sets minimum-wage policy, and runs India's contributory social-security machinery through the EPFO and ESIC. Labour is a Concurrent-List subject, so the ministry legislates alongside the states, and its writ reaches the organised workforce directly and — through the e-Shram database and welfare schemes — the far larger unorganised workforce. It is the seat of power that consolidated 29 central labour statutes into four Labour Codes, brought into force in November 2025.
Updated
- Headquarters
- Shram Shakti Bhawan, Rafi Marg, New Delhi
- Statutory bodies
- EPFO, ESIC, Directorate General of Training, Labour Bureau, DGFASLI
- e-Shram registrations
- over 31 crore unorganised workers (Nov 2025)
- Legal footprint
- 29 central labour laws consolidated into 4 Labour Codes
Role
The Ministry of Labour and Employment is the institution through which the Union government sets and polices the terms of employment. Because labour sits on the Constitution’s Concurrent List, the ministry legislates in parallel with the states: it frames the central statutes and rules, while state governments notify their own rules and enforce much of the law on the ground. Its direct reach is over the organised workforce — enforced through the Employees’ Provident Fund Organisation (retirement savings and pension) and the Employees’ State Insurance Corporation (health and cash benefits) — while its indirect reach, via the e-Shram database and linked welfare schemes, extends toward the unorganised workers who make up the large majority of Indian labour.
The ministry’s defining act of the decade has been legal consolidation: folding 29 central labour laws into four Labour Codes covering wages, industrial relations, social security, and occupational safety. It also runs the employment-facing machinery of the state — the National Career Service, the Directorate General of Training, and, since 2025, the Employment Linked Incentive scheme that pays employers and first-time workers through the EPFO. This places the ministry at the centre of two linked contests: how work is regulated, and whether the economy is generating enough formal jobs.
Desk maintained by IndiaStand editorial cycles. Officeholders are transient; this dossier tracks the institution.
Timeline since 1947
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Labour portfolio constituted at independence
The Union government constituted a dedicated labour portfolio at independence, giving the centre a standing department for labour legislation, industrial relations and worker welfare.
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Foundational labour statutes enacted
The Minimum Wages Act, the Factories Act and the Employees' State Insurance Act framed post-independence labour protection.
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Employees' Provident Funds Act; EPFO established
Created the contributory provident-fund system that the Employees' Provident Fund Organisation still administers.
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Rashtriya Swasthya Bima Yojana launched under the labour ministry
The ministry began running a cashless hospitalisation insurance scheme for below-poverty-line families, implemented across 25 states; roughly 36 million families were enrolled by February 2014.
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Unorganised Workers' Social Security Act, 2008 receives assent
The Act gave the ministry its first statutory framework for the unorganised workforce, mandating welfare schemes for life and disability cover, health and maternity benefits, and old-age protection.
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National Social Security Board constituted
The board created under the 2008 Act was formally set up to recommend social-security schemes for unorganised workers to the central government.
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EPS-95 wage ceiling raised from ₹6,500 to ₹15,000 a month
The revision more than doubled the wage base for the Employees' Pension Scheme, widening mandatory EPFO coverage and raising the pensionable-salary cap.
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Universal Account Number launched for EPFO members
The UAN gave each covered employee a single portable identifier across employers, the first step in making provident-fund accounts follow the worker rather than the job.
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Skill development carved out into a separate ministry
Responsibility for skill development was transferred from the labour ministry to the newly created Ministry of Skill Development and Entrepreneurship, splitting training policy from labour regulation.
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RSBY transferred to the Health Ministry
The ministry gave up its flagship health-insurance scheme for BPL families to the Ministry of Health and Family Welfare, narrowing its social-security footprint to the contributory EPFO and ESIC machinery.
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National Career Service portal launched
The ministry stood up a national online exchange linking job seekers and employers, the successor to the physical employment-exchange network.
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RSBY subsumed into Ayushman Bharat PM-JAY
In 2018-19 the scheme the labour ministry had launched in 2008 ceased to exist as a standalone programme, folded into the health ministry's PM-JAY.
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Code on Wages, 2019 receives assent
The first of the four codes, it introduced a national floor wage and a uniform statutory definition of wages.
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Three remaining Labour Codes receive assent
The Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions Codes were assented to on the same day.
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Unorganised Workers' Social Security Act, 2008 repealed
The 2008 Act was repealed and its subject matter absorbed into the Code on Social Security, 2020, consolidating the ministry's statutory basis for unorganised-worker welfare.
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e-Shram portal launched
A national database of unorganised workers, seeded with Aadhaar, issuing a Universal Account Number on self-declaration.
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EPF interest rate cut to 8.10% for 2021-22
The EPFO lowered the declared rate on provident-fund balances to 8.10%, the lowest in decades, a decision taken by the ministry-chaired trustee board on a corpus that had reached about ₹15.6 lakh crore in May 2021.
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EPFO death-relief ex-gratia raised to ₹15 lakh
The ex-gratia payable from the Employees' Deposit Linked Insurance-adjacent death relief fund was raised from ₹8.8 lakh to ₹15 lakh.
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Cabinet approves the Employment Linked Incentive (ELI) Scheme
A ₹99,446-crore scheme routed through the EPFO to subsidise first-time formal jobs and additional hiring, with a stated target of more than 3.5 crore jobs over two years.
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Four Labour Codes brought into force
The government notified the effective date for the major provisions of the codes, consolidating 29 central labour laws into four.
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Draft Central Rules under the codes gazetted
The ministry published draft rules for stakeholder comment, the operational detail beneath the enacted codes.
Frequently asked
- What is Ministry of Labour and Employment?
- The Ministry of Labour and Employment is the Union government's department for the terms of work: it drafts and enforces labour law, sets minimum-wage policy, and runs India's contributory social-security machinery through the EPFO and ESIC. Labour is a Concurrent-List subject, so the ministry legislates alongside the states, and its writ reaches the organised workforce directly and — through the e-Shram database and welfare schemes — the far larger unorganised workforce. It is the seat of power that consolidated 29 central labour statutes into four Labour Codes, brought into force in November 2025.
- When was Ministry of Labour and Employment established?
- Ministry of Labour and Employment was established 1947.
- What does Ministry of Labour and Employment do?
- Its remit covers Labour legislation and its enforcement (Concurrent List), Minimum wages and the national floor wage, Contributory social security via the EPFO (provident fund, pension) and ESIC (health insurance), Occupational safety, health and working conditions, Industrial relations, trade-union recognition and dispute resolution, Registration and welfare of unorganised, gig and platform workers (e-Shram).
- What is the latest on Ministry of Labour and Employment?
- As of 2026-07-06: Draft Central Rules under the codes gazetted. The ministry published draft rules for stakeholder comment, the operational detail beneath the enacted codes.
Official sources
The government's own pages for this institution — go straight to the primary.
- Official website
labour.gov.in/
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Canonical ministry home: divisions, labour codes, schemes, press releases, documents.
www.labour.gov.in/
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Statutory body under the ministry running the ESI contributory social-security and medical-care scheme.
www.esic.gov.in/
- Directorate General of Employment (DGE) department
Attached office handling employment services, National Career Service, and employment-related reports.
dge.gov.in/
- e-Shram portal data
National database and registration portal for unorganised workers, run by the ministry.
eshram.gov.in/
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Press Information Bureau archive of the ministry's press releases (append reg=3&lang=1 for English).
www.pib.gov.in/allRel.aspx?minid=21
- Annual Reports reports
Ministry annual report archive (PDFs, year-wise).
www.labour.gov.in/annual-reports
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