Why in news?
The Ministry of Labour and Employment released a draft National Labour & Employment Policy – Shram Shakti Niti 2025 for public consultation. The policy aims to modernise India’s labour ecosystem by ensuring dignity, protection and opportunity for every worker.
Background and history
India’s labour laws have long been criticised for being outdated, complex and fragmented. In recent years the government consolidated 29 existing laws into four labour codes covering wages, social security, industrial relations and occupational safety. The pandemic exposed vulnerabilities in the labour market, especially for informal workers. Shram Shakti Niti seeks to build on the codes and outline a holistic vision up to 2047 – India’s centenary year of independence.
Key features of the policy
- Unified vision and mission: The policy sets seven core objectives, including universal social security, safe working conditions, fair wages, skill development, gender and youth empowerment, ease of compliance and good governance.
- Employment Digital Public Infrastructure (DPI): The National Career Service (NCS) portal will evolve into a digital public good linking job seekers, employers and training providers. It will integrate with DigiLocker and e‑Shram.
- Universal social security account: A unique labour identity number will consolidate benefits from EPFO, ESIC, PM‑Jan Arogya Yojana and state schemes, allowing portability across jobs and locations.
- Women and youth empowerment: Targets include raising female labour force participation to 35 percent by 2030. Flexible work options, childcare support and targeted skilling programmes will be promoted.
- Ease of compliance and formalisation: A single digital compliance portal will reduce red tape and encourage small enterprises to formalise. Self‑employed and gig workers will be brought within the labour net.
- Technology and green transitions: The policy envisages AI‑enabled safety monitoring, continuous upskilling to prepare for automation and promotion of green jobs in sectors such as renewable energy and waste management.
- Convergence and governance: A three‑tier institutional structure – national council, state boards and district committees – will coordinate labour policies. Tripartite dialogue among government, employers and workers will guide decisions.
- Labour and employment stack: Integrated digital identities and entitlements will create a “labour stack” similar to the health stack, simplifying access to services.
- Phased implementation: The policy outlines phases from 2025 to 2047. Early phases focus on setting up institutions and digital infrastructure; later phases aim to expand universal coverage and integrate informal workers.
Significance and way forward
- Inclusive welfare: By recognising the diversity of India’s workforce – formal, informal, self‑employed, gig workers – the policy seeks to extend social security to all.
- Future‑ready workforce: Emphasis on skilling, reskilling and green jobs prepares workers for technological and environmental transitions.
- Ease of doing business: Simplified compliance and digital systems can attract investment and create jobs.
- Cooperative federalism: Effective implementation will require coordination between the Centre and states, as labour is a concurrent subject.
- Stakeholder engagement: The draft invites comments from employers, trade unions and citizens to build consensus and legitimacy.
The success of Shram Shakti Niti will depend on adequate funding, clear timelines and continuous dialogue with all stakeholders.