Key Highlights
No employer can pay wages below the statutory minimum wage.
The Government will fix a national floor wage.
Standard working hours have been defined to prevent excessive workloads.
Employers must issue appointment letters and provide wage slips.
ESIC coverage to be expanded nationwide; bonus-related provisions have been simplified.
Annual free health check-ups, paid annual leave, and prohibition of gender discrimination are mandated.
With the implementation of the new Labour Codes—Occupational Safety, Health and Working Conditions Code 2020 (OSHWC), Social Security Code 2020, Industrial Relations Code 2020, and Code on Wages 2019—India’s beedi and cigar workers are now assured of enhanced wage protection, expanded social security, and safer working conditions.
These reforms bring greater formalisation to the largely unorganised beedi and cigar sector, creating a stronger regulatory framework that ensures improved stability and security for workers across the country.
Shift From Old Framework to Modern Labour Reforms
Under the earlier Beedi and Cigar Workers (Conditions of Employment) Act, 1966, workers had limited protection. A normal workday could extend up to nine hours, and paid annual leave required completion of 240 working days in a calendar year. There were no provisions for mandatory medical check-ups.
The OSHWC Code, 2020 addresses these gaps.
The standard working day is now capped at 8 hours, with the weekly limit maintained at 48 hours.
Overtime must be paid at twice the normal wage.
Workers will now be eligible for paid annual leave after 180 days of work—making leave benefits more accessible.
Mandatory annual free health check-ups have been introduced.
Stronger Welfare Measures for Beedi and Cigar Workers
Wage and Payment Protection
The new Labour Codes ensure not just financial stability but also enhanced workplace safety and dignity for beedi and cigar workers.
Universal minimum wage compliance: Employers cannot pay below the government-notified minimum wage.
National floor wage to guide states in fixing fair wages.
Mandatory issuance of appointment letters and wage slips, ensuring transparency and formal employment status.
Broader ESIC coverage will extend health and social security benefits nationwide.
These reforms collectively reduce vulnerabilities faced by workers in the beedi and cigar sector and promote secure and dignified livelihoods.
