New Delhi | Special Correspondent: Arun Sharma

Reaffirming its commitment to labour welfare, the Modi government has once again sent out a clear message that economic reforms are meaningful only when their benefits reach the working class directly. The decision to implement a revised wage structure is being widely seen as a strong reflection of this worker-centric approach.


Under the new wage definition, the calculation of gratuity, provident fund (PF), leave encashment and other post-retirement benefits will now be carried out in a more transparent and equitable manner. This is expected to ensure that employees who dedicate decades of service receive dignified and secure financial support after retirement.


Government sources point out that complexities in the earlier wage structures often worked against employees, depriving them of their rightful benefits. By addressing these gaps, the Modi government has introduced a system that provides greater legal protection to workers’ rights while placing effective checks on arbitrary practices by employers.


Officials associated with the Ministry of Labour said the move is part of a broader policy vision that views workers not merely as labourers but as partners in nation-building. The government believes that enhanced security and satisfaction among workers will directly translate into higher productivity and accelerated economic growth.


Labour unions and policy experts have also welcomed the initiative, describing it as a positive step towards strengthening social security. They note that a likely increase in gratuity and retirement benefits will reinforce workers’ confidence in the future, enabling them to plan their family lives without fear or uncertainty.


Under the leadership of Prime Minister Narendra Modi, the Centre has already rolled out several landmark initiatives, including the e-Shram portal, minimum wage reforms, social security schemes and large-scale registration of workers in the unorganised sector. The revised wage policy is being viewed as a natural extension of these sustained efforts.


Policy analysts believe the decision could emerge as a milestone in India’s labour reform journey in the years to come, underlining that the core of the Modi government’s governance philosophy rests on dignity, security and prosperity for the nation’s workforce.