Govt. Establishes Worker Re-skilling Fund Under IR Code

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  • Last Updated on 11 May, 2026

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Worker Re-skilling Fund

Notification no. S.O. 2316(E); Dated: 08.05.2026

The Central Government has constituted the ‘Worker Re-skilling Fund’ in exercise of powers conferred under Section 83 of the Industrial Relations Code, 2020.

1. Purpose of the Fund

The fund has been established to:

  • Support re-skilling and rehabilitation of retrenched workers
  • Facilitate transition and employability after retrenchment

2. Composition of the Fund

The Worker Re-skilling Fund shall consist of:

2.1 Employer Contribution

  • Contribution by the employer of an industrial establishment equal to 15 days’ wages last drawn by the worker immediately before retrenchment or such other number of days as may be notified by the Government

2.2 Other Prescribed Contributions

  • Additional contributions from other sources as may be prescribed by the Government

3. Regulatory Objective

The initiative aims to:

  • Provide financial support for skill development and workforce transition
  • Strengthen social security measures for workers affected by retrenchment

4. Significance under Industrial Relations Framework

The fund forms part of the broader framework under the:

  • Industrial Relations Code, 2020
  • Focused on balancing industrial flexibility with worker welfare protections

5. Conclusion

The establishment of the Worker Re-skilling Fund reflects the Government’s emphasis on labour welfare and employability support, ensuring that retrenched workers receive assistance for skill enhancement and future employment opportunities.

Click Here To Read The Full Notification

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied