India’s bidi and cigar workforce—largely comprising home-based workers and women—has received a major boost in protection, security, and welfare through the implementation of the four new Labour Codes. These codes bring long-awaited reforms that universalize minimum wages, streamline social security, mandate fair working hours, and improve workplace safety across the sector.
Key Takeaways at a Glance
- No employer shall pay less than the minimum wage notified by the Government.
- Floor wages to be fixed and periodically revised by the Central Government.
- Normal working hours capped to prevent overwork and ensure better work-life balance.
- Mandatory wage slips & formal appointment letters to strengthen transparency.
- Pan-India ESIC coverage and better bonus entitlements under social security laws.
- Free annual health check-ups, increased annual leave, and strict prohibition of gender discrimination.
Introduction: A New Era of Worker Protection
With the enforcement of the Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020) and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020), India has taken a significant step toward improving the socio-economic conditions of bidi and cigar workers.
These workers—traditionally operating in informal, fragmented setups—now benefit from a robust regulatory framework offering fair wages, social security, health protection, and greater dignity at work.
From Old Provisions to Modern Labour Reforms
Under the outdated Bidi and Cigar Workers (Conditions of Employment) Act, 1966, worker protection was limited:
- A normal working day could last up to 9 hours.
- Annual leave required 240 days of work.
- There were no provisions for medical check-ups.
The new Labour Codes correct these gaps.
Key Improvements Under OSHWC Code
- Eight-hour standard working day (reduced from 9 hours).
- Overtime payable at double wages.
- Annual leave eligibility reduced to 180 days of service in a calendar year.
- Free annual health check-ups for all workers.
These updates ensure better health, fairer work conditions, and more humane labour standards.
Strengthened Welfare Measures for Bidi & Cigar Workers
1. Wage & Payment Protection
Universal Minimum Wages
For the first time, minimum wages now apply to all employees, not just those in scheduled employment. Wages must be reviewed every five years, with separate rates for time work and piece work.
Floor Wages
The Central Government will fix and revise floor wages considering living standards such as food, clothing, and basic needs—ensuring more uniform wage practices across states.
Mandatory Overtime Payment
Any work beyond normal hours will be compensated at twice the normal wage rate, with the worker’s consent required for overtime.
Time-Bound Wage Payments
Employers must now strictly follow payment deadlines:
| Employee Category | Payment Deadline |
| Daily-wage worker | End of shift |
| Weekly-rated worker | Before weekly holiday |
| Fortnightly-rated worker | Within 2 days of the end of the fortnight |
| Monthly-rated worker | Within 7 days of next month |
| On resignation/termination | Within 2 working days |
These protections—which earlier applied only to workers earning up to ₹24,000—now apply to all employees regardless of wage level.
Accountability for Wage Dues
If wages remain unpaid, liabilities directly extend to the proprietor, firm, company, or association running the establishment.
Working Hours Clarity
Normal working hours may be structured into 8, 9.5, or 12 hours per day, provided total weekly work does not exceed 48 hours and appropriate paid holidays are granted.
Wage Slips for Transparency
Electronic or physical wage slips are now compulsory.
2. Enhanced Social Security Benefits
ESIC Coverage Across India
- The concept of “notified areas” has been removed.
- All regions can now access ESIC benefits.
- Establishments with fewer than 10 workers may voluntarily opt in.
Extended Claim Filing Window
Workers now have three years to file claims, instead of the earlier 6 months to 2 years.
Improved Bonus Regulations
- Employees earning within the government-set wage limit and working 30+ days a year are eligible.
- Bonus: 8.33% to 20% of annual wages.
Formal Appointment Letters
Every worker must receive a formal appointment letter detailing:
- Designation
- Wage information
- Employee category
- Social security eligibility
Expanded Definition of “Family”
For women employees, the definition now includes parents-in-law, subject to income norms, providing wider social protection.
3. Healthier, Safer & More Inclusive Workplaces
Accident Compensation Expanded
Coverage now includes accidents that occur while commuting to or from the workplace.
Annual Health Check-ups
Every employee is entitled to free annual medical examinations.
Improved Leave Benefits
Workers now receive paid leave after 180 days of work, making leave more accessible.
Mandatory Welfare Facilities
The government will set standards for:
- Cleanliness
- Safe drinking water
- Toilets
- Rest rooms
- Canteens
- Occupational safety norms tailored to bidi & cigar workplaces
Zero Tolerance for Gender Discrimination
Employers are prohibited from gender-based discrimination in:
- Recruitment
- Wages
- Work conditions
This is crucial for a sector where women form a major share of the workforce.
Conclusion
The new Labour Codes mark a transformative step forward for the bidi and cigar sector by bringing formalization, fairness, health protection, and gender equality into the core of employment practices. With strengthened wage security, improved social-security coverage, safer working conditions, and clear accountability mechanisms, these reforms ensure that every worker in the sector is protected, valued, and empowered.