A steady rise in written contracts and basic workplace entitlements suggests that India’s labour market was moving toward greater formalisation even before the full rollout of the new labour codes, a Moneycontrol analysis of official data shows.

The new codes, which mandate appointment letters, expand paid-leave provisions for MSME workers, and widen social-security eligibility, are expected to accelerate this transition once implemented.

The Periodic Labour Force Survey (PLFS) 2023–24 shows a clear improvement in formal work arrangements. The share of salaried employees without a written job contract fell to 58 percent, from 62 percent in 2021–22. The improvement spans rural and urban areas and is visible among both men and women, indicating a gradual tightening of employment practices

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