For the past several decades, the Indian trucking industry has functioned as the economy's vital, if somewhat chaotic, circulatory system. It is a world inhabited by nearly 15 million truck drivers, most of whom operate in a gray zone of informal arrangements, cash payments, and grueling hours.
However, a regulatory clock ticked with the Indian government issuing a new labour code implementation, designed to bring this massive workforce under a structured, transparent umbrella. While the new law came into force beginning April 1, this year, its actual implementation may happen after each of the States notify it at their own levels.
Despite the optimism, industry veterans remain skeptical. SP Singh, Senior Fellow and Coordinator at the Indian Foundation of Transport Research and Training (IFTRT), points to a legacy of ignored regulations. He notes that the Motor Transport Worker's Act (MTWA) of 1961 was largely sidelined for decades due to transporter pushback. The numbers paint a stark picture of the current landscape. Out of approximately 3.5 lakh transporters in the country, only about 10,000 are registered under the MTWA. Even among those who are registered, the "on-paper" reality often masks the truth.
Singh explains that a transporter might employ 100 drivers but only reflect 20 to 30 on the books to avoid the financial "giveaways" in remunerations required by law. As Singh bluntly puts it: "The implementation will be the key". The Occupational Safety, Health and Working Conditions Code allows shifts up to 12 hours daily but caps weekly hours at 48, with overtime paid at double the regular wage beyond limits.
The Labour Code on Wages mandates minimum wages for all workers, including truck drivers, with a national floor wage and state-specific rates (e.g., skilled truck drivers in Jharkhand at Rs 17,165/month as of 2025).
Even smaller employers must provide appointment letters, clear wage slips, and overtime pay, formalizing payments and curbing underpayment common in informal setups. The code also offers Social Security by extending provident fund (PF), Employees' State Insurance Corporation (ESIC), health insurance, and gratuity (after one year for fixed-term) to more workers, including inter-state migrant truck drivers via portable benefits and e-Shram registration.
However, the view from the dispatch office is more complicated. A spokesperson for Mumbai-based Portman Logistics warns that "implementation will be a difficult task" because of the "unorganized nature" of the workforce. The reality is that many drivers aren’t full-time logistics professionals; they are farmers first. Many work for only six to eight months before returning to their villages for seasonal cultivation.
During these working windows, drivers often prefer to maximize immediate earnings rather than contributing to long-term social security schemes. Portman Logistics notes that during agricultural seasons, the industry faces severe shortages. While Singh of IFTRT counters that it is "inaccurate" to suggest drivers wouldn't want a legal safety net, the tension between immediate cash flow and long-term security remains a significant hurdle.
As the automotive industry moves toward smarter trucks and greener engines, the human element of the supply chain is finally getting its own upgrade. The shift to a formal economy will undoubtedly raise operational costs for transporters, but it also offers a path toward a more stable, professionalized workforce. For the millions of drivers currently navigating India’s highways, the 2026 deadline represents a promise of dignity—provided the government can succeed where previous decades of regulation have failed.