India has significantly increased its social protection coverage from 19% in 2015 to 64.3% in 2025, ranking second globally after China in providing social security to its citizens. The country’s recent labor reforms are expected to further strengthen this security, following the implementation of various social welfare schemes for the underprivileged. India was honored with the International Social Security Association (ISSA) Award 2025 for ‘Outstanding Achievement in Social Security’ in Malaysia this year.
The government, led by Prime Minister Narendra Modi, introduced the Pradhan Mantri Viksit Bharat Rozgar Yojana on August 15, 2025, with an allocation of Rs 99,446 crore. This initiative aims to stimulate the creation of over 3.5 crore jobs within a two-year period, with 1.92 crore beneficiaries being first-time entrants to the workforce. The scheme has garnered registrations from more than 2.35 lakh establishments on the PMVBRY portal, benefiting over 20.7 lakh first-time employees.
In a significant move, the government consolidated 29 existing labor laws into four Labor Codes to streamline operations and enhance worker welfare. These codes focus on wage security, social protection, and workplace safety for all workers, including women, migrants, gig, and platform workers. The reforms aim to simplify compliance for employers while strengthening workers’ rights and ensuring uniformity in wage-related matters.
To bolster social security benefits, the Employees’ Provident Fund Organization (EPFO) underwent a digital transformation, enabling auto-settlement of claims up to Rs 5 lakh and introducing a centralized Pension System. The EPFO also expanded the Employees State Insurance Corporation (ESIC) footprint to 713 districts, increasing the number of hospital beds under the ESIC scheme to 87,715 in the fiscal year 2024-25. Additionally, ESIC launched the scheme to Promote Registration of Employers/Employees (SPREE 2025) to facilitate registration for those previously excluded from ESI coverage.
