International Labour Day in India: Laws on Paper, Lives in Precarity

Credit By: K.V. CHANDRA MOULI

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• 01 May 2026

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India’s workforce is estimated at 47 crore, of which nearly 39–40 crore—over 90%—are employed in the unorganised sector

Every year on May 1, observed globally as ‘Antarrashtriya Shramik Diwas’ (International Labour Day), nations pause to recognise the dignity of labour and the struggles that secured basic workplace rights. In India, however, the day underscores a stark contradiction: a comprehensive legal framework coexists with widespread informality, insecurity, and inequality in the labour market.

India’s workforce is estimated at 47 crore, of which nearly 39–40 crore—over 90%—are employed in the unorganised sector. These workers typically lack written contracts, social security, and legal safeguards. Despite statutory protections under the Minimum Wages Act, 1948, Factories Act, 1948, Employees' State Insurance Act, 1948, and Employees' Provident Funds and Miscellaneous Provisions Act, 1952, enforcement remains uneven, particularly across smaller establishments and rural economies.

The government’s attempt to rationalise labour regulation through the four labour codes—the Code on Wages, 2019, Industrial Relations Code, 2020, Occupational Safety, Health and Working Conditions Code, 2020, and Code on Social Security, 2020—marks a significant reform effort. Yet, delayed implementation and apprehensions among trade unions over potential dilution of protections have slowed their impact.

A Labour Market Under Stress

India’s labour market faces a complex set of interlinked challenges. First, the scale of informality continues to undermine worker welfare. Informal workers are often excluded from provident fund benefits, health insurance, and pension schemes. According to various labour surveys, a large proportion of workers earn below the statutory minimum wages, reflecting gaps in enforcement.

 Second, the rise of contract labour has reshaped industrial relations. Contract workers frequently report long working hours—ranging from 10 to 13 hours per day—without commensurate wages or safety protections. The absence of stable employer-employee relationships reduces accountability and weakens collective bargaining.

Third, youth unemployment remains a serious concern. Estimates place unemployment among those aged 15–29 at around 14–15%, significantly higher than the national average. This is compounded by a persistent skill mismatch: while millions enter the workforce annually, industries report shortages of job-ready skills.

Fourth, female labour force participation (FLFP) in India remains among the lowest globally for a major economy. Although recent data indicate marginal improvements, women are still concentrated in low-paying, informal, and agricultural roles. Structural barriers—including safety concerns, unpaid care responsibilities, and social norms—limit their participation.

Fifth, the persistence of bonded and child labour highlights deep socio-economic distress. Despite legal prohibitions, these practices continue in sectors such as agriculture, brick kilns, and small-scale manufacturing, often tied to cycles of debt and poverty.

Finally, migration and labour mobility add another layer of complexity. Seasonal and distress migration remains widespread, with workers moving in search of better wages and basic amenities. The COVID-19 pandemic revealed the fragility of this workforce, as millions were left without income, shelter, or social protection.

Structural Drivers

These labour challenges are rooted in structural issues. A significant proportion of the workforce lacks access to quality education and vocational training, limiting employability in the formal sectors. Dependence on agriculture—often seasonal and low-paying—pushes workers into precarious employment. Moreover, weak enforcement mechanisms, understaffed labour departments, and regulatory fragmentation reduce the effectiveness of existing laws.

Policy Imperatives: Bridging the Gap

Addressing India’s labour crisis requires a multi-pronged strategy. A priority must be universalising social security. The Code on Social Security, 2020, provides a framework to include gig and platform workers, but operational rules and funding mechanisms must be urgently finalised. Portability of benefits—especially for migrant workers—should be ensured through digital platforms. Strengthening enforcement is equally critical. Technology-driven labour inspections, transparent compliance systems, and grievance redress mechanisms can improve accountability without increasing regulatory burden.

Bridging the skill gap requires aligning education with industry needs. Expanding apprenticeships, vocational training, and industry partnerships can enhance employability and productivity. Improving female labour participation demands targeted interventions—safe transport, workplace childcare facilities, flexible work arrangements, and strict enforcement of equal pay provisions.

Eliminating bonded and child labour necessitates coordinated action between law enforcement, local governance, and social welfare agencies. Rehabilitation must go beyond rescue to include sustainable livelihood support. Finally, labour reforms must balance flexibility with fairness. While ease of doing business is important, it should not come at the cost of worker dignity and security.

Conclusion

International Labour Day is not merely a symbolic observance; it is a moment of reckoning. India’s economic aspirations—whether measured in GDP growth or global competitiveness—will ultimately depend on the well-being of its workers. The country does not lack laws. It lacks consistent implementation, institutional capacity, and, at times, political urgency. Bridging the gap between legal intent and lived reality is the central challenge.

As India moves forward, the true tribute to its workers will not be in rhetoric, but in ensuring that every worker—formal or informal, rural or urban—has access to fair wages, safe working conditions, and social security. Only then will the spirit of May Day resonate meaningfully across the nation.

(The Author is  BE(Mech), BOE, ASME, Deputy Director of Boilers(Retd) Mysuru)