Published: 20 October 2025PIBEconomy
Draft National Labour and Employment Policy Released for Public Consultation
The Ministry of Labour and Employment released the draft National Labour and Employment Policy for public consultation in October 2025. The policy aims to formalise India's large informal workforce, estimated at 90% of total employment (approximately 47 crore workers), and create a framework for gig workers' social security.
Key proposals include universal social security coverage for all workers including gig and platform workers, a National Employment Service 2.0 powered by AI for job matching, skill development integrated with industry demand through Sector Skill Councils, and portable benefits across states. Rajasthan, with its large informal economy in mining, construction, textiles, and tourism sectors, stands to benefit from formalisation efforts. The state has approximately 2.8 crore workers in the informal sector.
Mains angle
Q: Critically examine the key proposals of the Draft National Labour and Employment Policy 2025 and its implications for gig workers and Rajasthan's informal economy.
Answer (50 words):
The Labour Ministry's draft policy, released in October 2025, targets formalising 90 percent of India's informal workforce of roughly 47 crore workers. Proposals include universal social security for gig and platform workers, AI-powered National Employment Service 2.0, and portable benefits, significantly benefiting Rajasthan's 2.8 crore informal workers across mining, construction and textiles.
6-axis classification
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Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
What percentage of India's total employment is in the informal sector?
Explanation · Correct answer AIndia's informal workforce is estimated at 90% of total employment (approximately 47 crore workers).
Frequently asked questions
What is the Draft National Labour and Employment Policy released in 2025?
The **Draft National Labour and Employment Policy** was released for public consultation in October 2025, outlining India's comprehensive framework for **labour market reforms, employment generation, workers' welfare, skill development**, and industrial relations.
What are the key objectives of India's Draft National Labour and Employment Policy?
The policy aims to **boost formal employment, improve job quality, strengthen social security for gig workers, streamline labour laws under the four Labour Codes, and align workforce skills** with India's economic transformation goals.
Why was the National Labour and Employment Policy released for public consultation?
The policy was released for **public consultation** to incorporate stakeholder inputs from workers, employers, trade unions, industry bodies, and the public, ensuring the final policy is **inclusive, practical, and widely accepted**.
How does the Draft Labour Policy address gig and platform workers?
The draft policy acknowledges the **rapid growth of gig economy workers** and proposes extending **social security coverage, welfare benefits, and grievance mechanisms** to platform workers who fall outside traditional employment frameworks.
What is the connection between National Labour Policy and India's Four Labour Codes?
India consolidated 29 central labour laws into **four Labour Codes** (Wages, Industrial Relations, Social Security, and Occupational Safety). The National Labour Policy provides the **overarching framework and intent** guiding implementation of these codes.
