Labour Laws in Odisha 2025: Minimum Wages, Working Hours, Benefits

Introduction

Odisha’s labour market plays a vital role in the state’s economy, encompassing a diverse range of sectors, from agriculture and mining to handicrafts, textiles, tourism, MSMEs, steel production, and manufacturing industries. Each sector contributes significantly to employment, with a strong presence of tribal and rural workforce, seasonal workers, and skilled artisans.

The importance of labour laws in Odisha cannot be overstated. They protect worker rights, ensure fair wages, regulate working conditions, and foster a healthy relationship between employers and employees. For businesses, adherence to these laws is crucial for ensuring legal compliance, maintaining productivity, and fostering an ethical work environment.

However, Odisha also faces unique challenges in labour law enforcement, such as:

• A large migrant labour force that moves between states for seasonal employment.
• Significant reliance on unorganized sectors, including agriculture, handloom, and construction, which often operate outside formal regulatory frameworks.
• The presence of tribal populations with distinct customary practices and socio-economic vulnerabilities.
• Geographic challenges, especially in remote and tribal-dominated districts, making regulatory oversight difficult.
• Ensuring compliance among small-scale businesses and MSMEs, which often lack awareness or resources to fully comply with all labour regulations.

These factors make it essential for Odisha’s labour laws to balance worker welfare with the need to support economic growth and ease of doing business, especially in critical sectors like mining, manufacturing, and agriculture.

General Framework of Indian Labour Laws

Overview of Central Labour Laws

Several central labour laws form the foundation of labour governance across all Indian states, including Odisha. Some of the most relevant ones are:

• The Minimum Wages Act, 1948 – Establishes minimum wage rates for different categories of workers across various industries.
• The Industrial Disputes Act, 1947 – Governs industrial relations, dispute resolution mechanisms, and the legal framework around strikes, layoffs, and retrenchments.
• The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 – Mandates provident fund contributions for eligible employees to ensure post-retirement financial security.
• The Employees’ State Insurance Act, 1948 – Provides health and medical insurance for workers in specified sectors.
• The Factories Act, 1948 – Regulates working conditions, health, and safety standards in factories.

These central laws create a baseline framework applicable to all states, including Odisha, but states have the flexibility to adopt, amend, or supplement these laws to better suit their local socio-economic and industrial needs.

Relationship Between Central and Odisha-Specific Laws

In Odisha, labour governance operates at two levels:

• Central Labour Laws – Which apply directly or with minor modifications.
• State-Specific Laws and Rules – Enacted by Odisha to address unique local needs, such as coastal industries, tribal workforce integration, and seasonal employment trends.

Key Differences and Adaptations:

• Minimum Wages – Odisha’s minimum wage structure accounts for region-specific industries, like mining, handicrafts, construction, and tourism.
• Customary Practices – In tribal-dominated areas, certain customary practices around land and labour co-exist with formal labour laws, requiring careful reconciliation between tribal rights and modern labour protections.
• Contract Labour and Migrant Workers – Odisha’s laws place special emphasis on tracking and regulating migrant workers, given the high outflow and inflow of labour from neighbouring states.
• Mining Sector Regulation – Odisha’s specific rules focus heavily on safety, health, and welfare standards for workers in mines and quarries, reflecting the state’s significant mineral wealth.

Socio-Economic Factors Influencing Odisha’s Labour Laws:

• The coastal economy, particularly fisheries and port-based employment.
• A large informal workforce in agriculture and textiles.
• The need to balance industrial growth (steel, power, mining) with environmental and worker safety concerns.
• Tribal workforce integration, with efforts to formalize employment while respecting customary tribal rights.

This dual-layered system of central and Odisha-specific laws helps create a comprehensive regulatory environment, although enforcement challenges remain, especially in rural and unorganized sectors.

Key Odisha-Specific Labour Laws

Odisha Shops and Establishments Act

The Odisha Shops and Establishments Act regulates the working conditions, employment terms, and welfare provisions for employees in shops, commercial establishments, hotels, restaurants, and other service sector businesses in Odisha.

Applicability

• Applicable to all shops, commercial establishments, restaurants, hotels, theatres, and other public amusement places operating within the state.
• Covers both urban and rural areas, including seasonal and temporary establishments.

Registration Process

• All eligible establishments must register with the local Labour Department within 30 days of commencement.
• Registration requires submission of:
  • Business details
  • Employee information
  • Nature of work and operational hours
• Periodic renewal of registration is mandatory.

Compliance Requirements

• Display of registration certificate at the premises.
• Maintenance of employee attendance, wage records, and leave registers.
• Observance of specified working hours, overtime limits, and mandatory weekly rest days.

Working Hours, Rest Days, and Overtime

• Daily working hours: Maximum 8 hours per day.
• Weekly working hours: Maximum 48 hours per week.
• Overtime: Permissible with double wages for work beyond standard hours.
• One mandatory weekly off day for all employees.
• Special provisions for women workers, including restrictions on night shifts unless specific conditions are met (like safety measures and transportation).

Odisha Minimum Wages Act

The Odisha Minimum Wages Act sets the minimum wages for different categories of workers across various sectors. The law aims to ensure fair remuneration and improve the living standards of workers, particularly in agriculture, mining, construction, textiles, tourism, and the MSME sectors.

Worker Categorization

Workers in Odisha are broadly categorized as:

• Unskilled Workers – Basic manual labour requiring no specialized skills.
• Semi-skilled Workers – Jobs requiring some level of training or work experience.
• Skilled Workers – Workers performing complex tasks requiring professional skills, training, or technical expertise.
• Highly Skilled Workers – Workers with advanced skills or certifications, often in specialized sectors like mining or steel manufacturing.

Minimum Wage Rates for 2025

Minimum wages vary across:

• Industries – Agriculture, construction, textiles, tourism, mining, manufacturing.
• Locations – Urban vs. rural.
• Skill levels – Unskilled, semi-skilled, skilled.

Minimum wage rates for 2025 will be notified by the Odisha Labour Department, ensuring revisions reflect inflation, cost of living, and industry conditions.

Factories Act (Odisha Provisions)

The Factories Act, as adapted for Odisha, governs the working conditions, safety, health, and welfare of workers employed in factories and manufacturing units.

Key Provisions for Odisha

• Worker Safety – Mandatory safety measures in mining, steel, chemical, and construction industries.
• Health Provisions – Clean drinking water, proper sanitation, ventilation, and lighting.
• Welfare Facilities – Canteens, restrooms, first aid, and crèches for factories with significant female workforce.
• Working Hours – Maximum 48 hours per week with overtime wages for extended work.
• Worker Training – Periodic safety drills and training programs in high-risk industries (mining, steel, and chemical sectors).
• Annual Health Checkups – Required for workers in hazardous industries.

Note: Odisha’s Labour Department conducts regular inspections, particularly in industrial hubs like Angul, Jharsuguda, and Paradeep, to ensure compliance.

External Link:

• Odisha Labour Department

Minimum Wages in Odisha

Breakdown of Minimum Wages

Wage Rates for 2025

The minimum wages in Odisha for 2025 are categorized by:

• Worker type – Unskilled, Semi-skilled, Skilled, Highly Skilled.
• Industry – Agriculture, Construction, Mining, Textiles, Tourism, Manufacturing.
• Location – Rural vs. Urban.

Worker Category	Agriculture	Construction	Mining	Textiles	Tourism	Manufacturing
Unskilled	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day
Semi-skilled	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day
Skilled	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day
Highly Skilled	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day	₹XXX/day

(The actual rates for 2025 will be based on the official notification from the Odisha Labour Department.)

Sector-Specific Variations

• Agriculture – Seasonal variations in wages, especially for plantation work.
• Mining and Construction – Higher minimum wages due to hazardous working conditions.
• Handloom and Textiles – Consideration for cottage industry and cooperative models.
• Tourism and Hospitality – Seasonal wage adjustments in popular tourist areas (Puri, Bhubaneswar, Konark).

Revisions and Compliance

Frequency of Wage Revisions

• Minimum wages in Odisha are generally revised annually, though special reviews may happen if:
  • Inflation rates spike.
  • Significant economic changes occur (pandemics, natural disasters).
  • Sectoral demands are raised by worker unions.

Compliance Requirements

• Display of wage notifications at worksites.
• Timely payment of wages, without unauthorized deductions.
• Maintenance of wage registers and payment records.

Penalties for Non-Compliance

• Fines ranging from ₹5,000 to ₹50,000 for non-payment or underpayment of wages.
• Legal proceedings for repeated violations.
• In cases of exploitation, particularly of tribal workers, women, or child labour, criminal charges may be filed under related labour laws.

Working Hours, Leaves, and Holidays

Working Hours

Standard Daily and Weekly Working Hours

• In shops, establishments, factories, and commercial units covered under Odisha’s labour laws, the standard working hours are:
  • Daily Limit: 8 hours per day.
  • Weekly Limit: 48 hours per week.
• Work must be split into shifts, ensuring proper rest intervals between shifts.
• Continuous work beyond 5 hours requires a rest break of at least 30 minutes.

Overtime and Compensatory Off Policies

• Overtime is permitted, but:
  • Workers must not exceed 10 hours in a day.
  • Total working hours (including overtime) must not exceed 60 hours per week.
• Overtime wages must be paid at double the regular hourly wage.
• Workers asked to work on designated weekly offs or public holidays are entitled to:
  • Double wages, or
  • Compensatory leave within a specified time.

Leave Entitlements

Types of Leave

Odisha follows the leave structure mandated under The Shops and Establishments Act and The Factories Act, with minor state-specific adaptations.

• Annual Leave (Earned Leave):
  • Employees earn 1 day of leave for every 20 days worked.
  • Unused annual leave can typically be carried forward, subject to limits.
• Casual Leave:
  • Usually 6 to 12 days per year, depending on the industry.
  • Intended for short-term emergencies or personal reasons.
• Sick Leave:
  • Up to 12 days per year.
  • May require medical certification for extended periods.

Maternity Leave

• Odisha follows the central Maternity Benefit Act, providing:
  • 26 weeks of paid maternity leave for the first two children.
  • 12 weeks for the third child onwards.
  • 6 weeks leave for miscarriage or medical termination of pregnancy.
• Additional state-specific provisions promote crèche facilities in establishments with more than 50 employees.

Public Holidays in Odisha

List of Public Holidays (Indicative for 2025)

• Republic Day – January 26
• Utkal Divas (Odisha Day) – April 1
• Independence Day – August 15
• Gandhi Jayanti – October 2
• Durga Puja (Maha Navami & Vijaya Dashami)
• Diwali
• Christmas Day – December 25
• Rath Yatra (specific to Odisha)
• Nuakhai (Harvest Festival)

(The official holiday list for 2025 will be notified by the Odisha Labour Department.)

Wage Implications for Working on Public Holidays

• Workers required to work on any of the notified public holidays are entitled to:
  • Double wages, or
  • Substitute leave with pay, if agreed by the worker.

Employee Benefits and Welfare Schemes

Social Security Programs

Implementation of EPF and ESI

Odisha implements central social security programs, including:

• Employees’ Provident Fund (EPF):
  • Applicable to establishments with 20 or more employees.
  • 12% of basic wages contributed by employer.
  • 12% contributed by employee.
  • Benefits include retirement corpus, pension, and insurance (EDLI scheme).
• Employees’ State Insurance (ESI):
  • Applicable to establishments with 10 or more employees (in notified areas).
  • Covers employees earning up to ₹21,000 per month.
  • Contributions:
    • Employer: 3.25% of wages.
    • Employee: 0.75% of wages.
  • Benefits include:
    • Medical care for employees and dependents.
    • Sickness benefits (cash allowance during medical leave).
    • Maternity benefits.
    • Disability and dependent benefits in case of workplace accidents.

Odisha-Specific Welfare Schemes

Targeted Schemes for Specific Sectors

Odisha offers state-specific welfare schemes aimed at sectors with high informal or vulnerable workforce, such as:

• Construction Workers Welfare Scheme:
  • Administered by the Odisha Building and Other Construction Workers Welfare Board.
  • Provides:
    • Accident insurance.
    • Educational support for children.
    • Marriage assistance.
    • Pension benefits.
  • Funded through cess collected from construction projects.
• Mine Workers Welfare Schemes:
  • Health check-ups, safety equipment, rehabilitation assistance for accident victims.
  • Skill upgradation and reskilling programs for displaced workers.
• Handloom and Handicrafts Workers Welfare:
  • Financial assistance for raw materials and marketing support.
  • Insurance coverage under state-funded schemes.
  • Linkages to e-commerce platforms and state-run emporiums for market access.
• Tribal Labour Welfare:
  • Special programs for tribal artisans and forest produce gatherers.
  • Subsidized loans, vocational training, and livelihood diversification programs.

Skill Development and Employment Generation

Odisha promotes employment generation and upskilling through initiatives like:

• Odisha Skill Development Authority (OSDA):
  • Runs programs to improve technical skills across sectors.
  • Special focus on sectors like hospitality, tourism, textiles, and agriculture.
  • Partnerships with industry bodies for placement-linked training.
• Mission Shakti:
  • Focuses on empowering women workers through self-help groups (SHGs).
  • Provides financial literacy, micro-enterprise support, and market access assistance.
• Migrant Labour Tracking and Welfare Programs:
  • Registers and tracks inter-state and intra-state migrant workers.
  • Provides insurance, health services, and legal support.
  • Special provisions for returning migrant workers post-pandemics or economic downturns.

Industrial Relations and Dispute Resolution

Mechanisms for Dispute Resolution

Role of Labour Courts and Industrial Tribunals in Odisha

Odisha follows the Industrial Disputes Act, 1947, along with state-specific rules to manage industrial disputes, worker grievances, and employer-employee conflicts.

• Labour Courts:
  • Deal with individual disputes, especially around wages, dismissals, retrenchment, and employment conditions.
  • Located in major districts such as Bhubaneswar, Cuttack, Rourkela, and Sambalpur.
  • Labour Courts have the authority to:
    • Reinstate dismissed workers.
    • Award compensation.
    • Enforce payment of due wages.
• Industrial Tribunals:
  • Handle collective disputes involving unions and management, including:
    • Charter of demands.
    • Bargaining failures.
    • Mass retrenchments or closures.
  • Industrial Tribunals focus on sector-wide issues affecting multiple employers or unions.
• Appellate Process:
  • Decisions of Labour Courts and Tribunals can be challenged in the High Court of Odisha.

Worker Grievance Redressal Mechanisms

• Employers in establishments with 20 or more employees must constitute Grievance Redressal Committees (GRCs).
• Workers can file grievances directly with:
  • Labour Inspectors at district level.
  • Assistant Labour Commissioners (ALCs) at regional offices.
• Special mechanisms exist for:
  • Migrant workers, through Migrant Labour Cells.
  • Women workers, through Internal Complaints Committees (ICCs) under the POSH Act.
• Online complaint portals under the Odisha Labour Department website allow digital filing of grievances for quicker resolution.

Strikes, Lockouts, and Layoffs

Legal Provisions

• Odisha adheres to the Industrial Disputes Act, 1947, which governs:
  • Right to strike for workers.
  • Right to lockout for employers.
  • Procedure for layoffs, retrenchments, and closures.
• Strikes:
  • Workers must provide minimum 14 days’ notice before a legal strike.
  • Strikes in public utility services (like electricity, water supply, or transport) have additional restrictions.
  • Illegal strikes may lead to wage deductions and disciplinary action.
• Lockouts:
  • Employers must give notice to labour authorities and affected workers.
  • Lockouts without due process are deemed illegal, with financial and legal penalties.
• Layoffs and Retrenchments:
  • Establishments employing 50 or more workers must:
    • Seek prior approval from the government for retrenchments.
    • Provide compensation equal to 15 days’ wages for every year of completed service.
  • Special provisions apply to sectors like mining and manufacturing, with stricter oversight to protect workers from sudden unemployment.

Employer Responsibilities During Layoffs

• Advance intimation to the Labour Department.
• Fair compensation and settlement of wages.
• Counselling support and assistance for re-employment, especially in large-scale layoffs.
• For migrant workers, employers must:
  • Facilitate safe return to home states.
  • Provide travel allowances where applicable.

Recent Amendments or Updates

Key 2025 Updates in Odisha’s Labour Laws

The Odisha Labour Department regularly reviews and updates labour laws to keep pace with economic changes, worker needs, and technological advancements. Key updates expected or introduced in 2025 include:

• Revised Minimum Wages for 2025:
  • New wage rates for agriculture, mining, construction, textiles, and tourism sectors.
  • Introduction of differential wages based on skill levels and geographic zones (urban vs rural).
  • Enhanced wage rates for hazardous sectors like mining.
• Welfare Scheme Expansion:
  • Enhanced benefits under the Odisha Building and Other Construction Workers Welfare Scheme, including:
    • Higher maternity assistance for female construction workers.
    • Expanded accident insurance coverage.
  • New skill development programs focusing on green jobs and renewable energy sectors.
  • New incentives for women entrepreneurs and workers under Mission Shakti 2025.
• Improved Grievance Redressal Mechanism:
  • Launch of an upgraded online grievance portal for:
    • Registration of complaints.
    • Tracking complaint status.
    • Online hearings in select districts.
• Compliance Digitization Initiatives:
  • Mandatory online registration and renewal for:
    • Shops and establishments.
    • Factories.
    • Labour contractors.
  • Employers must maintain digital wage registers and employee records, enabling easier audits and inspections.
• Migrant Labourer Protections:
  • New guidelines under the Inter-State Migrant Workmen Act, with:
    • Mandatory pre-registration of inter-state workers.
    • Introduction of portable welfare benefits, including health insurance and food rations.
• Sector-Specific Amendments:
  • Handloom & Handicraft Sector: Increased subsidies for artisan cooperatives.
  • Mining Sector: Stricter safety and health protocols for workers in hazardous mining zones.
  • Tourism Sector: Flexible work-hour policies during peak tourist seasons, ensuring fair compensation for extended hours.

Changes in Compliance Rules

• Enhanced penalties for non-compliance with:
  • Minimum wage payment.
  • Working conditions in factories and construction sites.
  • Violation of maternity benefits and women safety provisions.
• Introduction of self-certification schemes for MSMEs to ease compliance for smaller employers while ensuring basic worker protections.

Government Notifications

• All amendments, notifications, and circulars are regularly published on:
  • Odisha Labour Department Notifications Page
• Employers and workers are encouraged to subscribe to notification alerts to stay informed about legal changes.

Conclusion

Odisha’s labour laws for 2025 represent a comprehensive blend of central laws and state-specific adaptations, designed to safeguard worker rights while promoting a business-friendly environment across key sectors like agriculture, mining, textiles, manufacturing, tourism, and MSMEs.

With its diverse workforce, including a significant tribal population, migrant labourers, and unorganized workers, Odisha has crafted sector-specific welfare schemes and simplified compliance mechanisms to support employers and protect workers. From fair wages and social security benefits to workplace safety regulations and dispute resolution systems, Odisha’s labour policies aim to balance worker welfare with economic development.

Key Takeaways

• Periodic revisions of minimum wages ensure fair compensation.
• Special protections for migrant workers, construction labourers, and women workers.
• Online registration systems simplify compliance for businesses.
• Grievance redressal mechanisms are accessible both offline and online.
• Skill development programs foster employability, especially for youth and women.

Whether you’re a business owner, HR professional, or worker, understanding Odisha’s labour laws, welfare schemes, and dispute resolution mechanisms is essential for ensuring legal compliance and protecting workplace rights.

H2: Frequently Asked Questions (FAQs)

1. What are the latest minimum wages in Odisha for 2025?

The Odisha Minimum Wages Act sets different wage rates for unskilled, semi-skilled, skilled, and highly skilled workers across sectors like agriculture, construction, mining, textiles, and tourism. The official 2025 wage rates will be notified by the Odisha Labour Department and are available on the Labour Department Portal.

2. How can businesses register under the Odisha Shops and Establishments Act?

Businesses must:

• Apply online or offline to the local Labour Department office.
• Submit details such as:
  • Business type and address.
  • Number of employees.
  • Nature of work and operational hours.
• Obtain a Shops and Establishments registration certificate, which must be displayed at the premises.

The registration portal can be accessed at labour.odisha.gov.in.

3. What are the leave entitlements for employees in Odisha?

Employees in Odisha are entitled to:

• Annual Leave (Earned Leave): 1 day for every 20 days worked.
• Casual Leave: 6 to 12 days per year.
• Sick Leave: 12 days per year.
• Maternity Leave: Up to 26 weeks (as per central law).

4. How does overtime payment work in Odisha?

• Workers are paid double their regular wages for overtime work.
• Daily working hours cannot exceed 10 hours.
• Total weekly working hours (including overtime) must not exceed 60 hours.
• Overtime must be documented in wage records.

5. Are EPF and ESI mandatory for all employees?

• EPF (Employees’ Provident Fund): Mandatory for establishments with 20 or more employees.
• ESI (Employees’ State Insurance): Mandatory for establishments with 10 or more employees in notified areas.
• Coverage applies to employees earning up to ₹21,000 per month under ESI.

6. What welfare schemes are available for construction and mine workers in Odisha?

• Construction Workers Welfare Scheme: Provides accident insurance, educational assistance for children, marriage assistance, and pensions.
• Mine Workers Welfare Scheme: Offers health check-ups, safety training, rehabilitation assistance, and reskilling programs.
• Both schemes are administered by the Odisha Building and Other Construction Workers Welfare Board.

More details: bocboard.labdirodisha.gov.in

7. How can workers file disputes in Odisha?

• Workers can file disputes through:
  • Grievance Redressal Committees at their workplace (for establishments with 20+ employees).
  • District Labour Offices.
  • Online grievance portal on the Odisha Labour Department website.
• Disputes may also be escalated to Labour Courts or Industrial Tribunals if not resolved at lower levels.

8. What is the role of labour courts in Odisha?

• Labour Courts handle individual disputes relating to:
  • Wage disputes.
  • Wrongful termination.
  • Retrenchment compensation.
• Labour courts can:
  • Reinstate employees.
  • Award compensation or back wages.
• Collective disputes are handled by Industrial Tribunals.

9. What are the differences between Odisha and Jharkhand labour laws?

Aspect	Odisha	Jharkhand
Minimum Wages	Sector-specific minimum wages; separate urban and rural rates	Similar, but with different wage slabs for mining and heavy industry
Welfare Schemes	Extensive welfare for construction workers, tribal workers, and artisans	Focus on mine workers, construction workers, and industrial workers
Tribal Labour Focus	Strong integration of tribal customary practices and livelihood support	Focus on tribal workforce protection in mining zones
Industrial Hubs	Bhubaneswar, Rourkela, Angul	Jamshedpur, Dhanbad, Bokaro
Grievance Redressal	Online grievance portal available	Mostly offline processes with limited digital services

10. How are public holidays handled in Odisha?

• Public holidays are notified annually by the Odisha government.
• Workers asked to work on public holidays are entitled to:
  • Double wages, or
  • Substitute leave on another day.
• Key holidays include:
  • Utkal Divas.
  • Rath Yatra.
  • Nuakhai.
  • National holidays like Independence Day and Republic Day.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.