India's Workforce Gets A Health Upgrade Under New Labour Codes: Key Benefits Explained

In one of the most significant labour law overhauls in decades, the Indian government has brought four new labour codes into force, streamlining 29 older laws into a unified framework. Among the many worker-friendly reforms, a healthcare milestone stands out. Employers must now provide annual free medical examinations to all workers aged over 40. This provision, enshrined in the Occupational Safety, Health and Working Conditions (OSH) Code, marks a major shift toward preventive occupational health in India. At a time when non-communicable diseases like diabetes and hypertension are surging, this reform has profound implications not just for individual workers' health, but for public health and economic productivity.

What Are the New Health Benefits Under the Labour Codes?

Mandatory checkups for older workers

Under the OSH Code (2020), which is now in force, all employers are required to provide free annual health check-ups to employees above 40 years of age. The government's formal labour code text also explicitly mentions "mandatory, free annual health check-up of the workers." 

Expanded social security with ESI (Employees' State Insurance)

Together with health checkups, the new social security code expands health coverage through Employees' State Insurance (ESI). While ESI remains mandatory in establishments with hazardous processes, for smaller firms (under 10 employees) the coverage is now voluntary, potentially affecting who gets insured. This ESI expansion means more workers will have access to formal health benefits.

Benefits for fixed-term and contract workers

Fixed-term employees now get near-parity with permanent workers, with medical benefits, leave, and social security protections are mandated. This change ensures that even contract or seasonal workers, who often lack healthcare access, can get preventive health checks.

Gig and platform workers covered

For the first time, gig and platform workers are formally included in social security. Aggregators must contribute a portion of their turnover to a dedicated fund for benefits, including health coverage. Several sources confirm that platform workers are now eligible.

Simplified compliance for employers

The labour codes introduce a single-registration, single-licence, single-return system, reducing administrative burden for employers. This makes it easier for businesses to comply and deliver the mandated health checkups without complex overhead.

What This Means for India's Workforce and Public Health

1. Boost to Preventive Healthcare

Annual health checkups for employees over 40 encourage early detection of non-communicable diseases (NCDs) such as hypertension, diabetes, and cardiovascular conditions. Early screening is especially valuable in India. According to the Ministry of Health & Family Welfare, NCDs account for a large share of death nationally.

Research supports this. A study in Saf Health Work found that annual physical checkups improve health-care awareness among employees and help prevent disease risk. Moreover, regular checkups have been linked to a significant reduction in mortality. One recent Indian study reported that systematic preventive screening can cut the risk of death by nearly half.

2. Economic and Productivity Gains

Healthier workers are more productive, reduce absenteeism, and cost less in long-term healthcare. A working paper by ICRIER showed that preventive health care yields both direct benefits (better detection of disease) and indirect ones (higher workplace performance). 

Employers, by offering health checkups, can reduce costs associated with sick leave and serious illness. Furthermore, investing in preventive wellness aligns with global trends as many businesses view health programs as strategic, not just altruistic.

3. Improved Occupational Health Culture

The new labour codes align with international standards: The World Health Organization emphasizes that promoting worker health and prevention of hazards should be core to employment policies. By institutionalizing annual medical examinations, India strengthens its occupational health framework and signals a commitment to workers' long-term well-being.

4. Closing Coverage Gaps

Previously, only a fraction of Indian employers offered routine health screening. A recent report found only 20% of companies did so, despite over 70% of employees having lifestyle disease risk. The labour code now mandates checkups for a large section of workers, particularly those above 40, helping to close a major preventive-care gap.

Challenges and Limitations

• Age threshold: The requirement applies only to workers aged 40 and above, so younger employees still may not receive routine preventive screening under the codes.
• Quality and scope of checkups: While the law mandates "health examinations or tests, as may be prescribed by the government," the exact content of these checkups will depend on the rules to be defined in regulations.
• Overdiagnosis risk: There is a risk of excessive or inappropriate screening if checkups are poorly defined. A review in National Medical Journal of India notes that routine check-up packages may include unnecessary tests, leading to over-diagnosis, false positives, and psychological stress. 
• Implementation burden for small employers: Although compliance is simplified, smaller firms may still struggle to provide health checkups, especially in remote areas.

With the implementation of its four new labour codes, India has taken a landmark step toward integrating occupational health with preventive public health policy. The mandate of free annual health checkups for workers over 40 could play a transformative role in early disease detection, worker well-being, and reducing the economic burden of chronic illness. While the true impact will depend on how governments prescribe and enforce these medical examinations, the reform signals a clear shift: employee health is no longer a fringe benefit, but a legal right.

For India's ageing workforce and its rapidly growing disease burden, this move could mean not just healthier workers, but a healthier nation.

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