ISLAMABAD/AMSTERDAM — Labour legislation around the world is showing a shift toward stronger worker protection, with major reforms in South Asia offering fresh momentum for decent work, according to Labour Rights Index 2026 released ahead of World Day for Decent Work.
The fourth edition of the Index, produced by the WageIndicator Foundation and the Centre for Labour Research, assesses labour laws in 168 countries, covering about 95% of the world’s population.
Its central message is encouraging: despite continuing gaps in enforcement and legal protection, countries are generally moving toward stronger labour legislation rather than a global race to weaken workers’ rights.
For Pakistan, the report carries an especially significant message. While the country receives a 52.5 score in the 2026 Index, that figure does not include the sweeping Punjab Labour Code 2026, enacted after the Index’s January 1 reference date.
An accompanying assessment estimates that applying the Punjab Code could lift Pakistan’s score by 33.5 points, from 52.5 to 86, potentially moving the country from “basic access to decent work” to “approaching access to decent work.”
That prospective improvement places Punjab’s new labour framework among the most consequential recent developments highlighted by the Index.
South Asia
South Asia remains the lowest-scoring region in the 2026 assessment, averaging 58 points, compared with 92 in Europe. But the regional picture also contains important signs of progress.
India leads South Asia at 71.5, followed by Nepal at 69.5. Pakistan records 52.5, while Sri Lanka has the region’s lowest score at 44. The numbers, however, do not tell the full story for Pakistan.
The Index assesses the law in force on January 1, 2026. The Punjab Labour Code was enacted on February 10, 2026, and therefore falls outside the assessment window.
The Code itself is designed to consolidate, simplify and rationalise labour legislation and covers fundamental workplace rights including freedom of association, collective bargaining, forced-labour elimination, child-labour protection, non-discrimination and safe and healthy working conditions.
Punjab reform could transform Pakistan’s labour-rights standing
The separate Labour Rights Index 2026 Insights assessment gives the Punjab reform particular significance. If the provisions of the new Code are applied to the Index’s scoring framework, Pakistan’s score could rise from 52.5 to 86.
That shows a 33.5-point improvement and moves the country’s legal framework into the “approaching access to decent work” category. The reform brings together 26 labour laws and broadens protection to categories of workers that have increasingly become central to the modern economy.
These include contract and agency workers, agricultural workers, domestic worker, home-based workers, platform workers, apprentices and interns. Code also addresses maternity protection, childcare, equal treatment, occupational safety and health, child labour, forced labour and freedom of association.
Its extends beyond simply consolidating legislation: it seeks to bring different and emerging forms of work within a more coherent legal framework.
The official Code describes its purpose as consolidating and rationalising laws relating to workers’ rights and eliminating forced and compulsory labour, while also addressing wages, working time, working conditions, labour welfare and dispute resolution.
Pakistan’s reform momentum extends beyond the Index
Developments during 2026 further underline the changing labour landscape in Punjab. In June, the Punjab Labour Department, employers and workers’ representatives agreed to pilot employment contracts for domestic workers, an initiative supported by the International Labour Organization.
ILO described the agreement as an important step toward formalising domestic work and improving employment security and labour protection in the province. Together with the Punjab Labour Code, the development signals growing attention to workers who have historically operated outside formal employment structures.
Global direction
Labour Rights Index measures labour protections established in law, examining workers’ rights across the employment cycle through 10 indicators and 48 assessment components. 2026 edition expands the previous assessment by 23 countries, making it the most geographically comprehensive version since the Index was launched.
The findings show that 42 countries, representing nearly half of the world’s population, now fall into the category of “reasonable access to decent work.” At the highest level, 21 European countries are classified as providing “access to decent work”, although they represent only 3.55% of the population covered.
At the opposite end, 13 countries, accounting for 4.75% of the covered population, remain in the category of “total lack of access to decent work.”
Iftikhar Ahmad, Lead Researcher for the Labour Rights Index, said the broad trend was one of legislative progress.
“In general, there’s a march toward the top rather than a race to the bottom.”
Ahmad said the improvement in legislation indicates that lawmakers in many countries are moving toward stronger statutory protection, while acknowledging that enforcement remains a separate challenge, particularly in lower-income economies.
Over 130 legal reforms recorded across 70 countries
Index recorded 134 legal changes in 70 countries between January 1, 2024 and January 1, 2026. Several countries registered reforms that improved their scores, including Mali, India and Lebanon, alongside 16 other countries. Mali strengthened its legal response to workplace sexual harassment through its 2024 Penal Code.
India introduced its four Labour Codes in November 2025, bringing significant changes to the legal framework. The reforms include written appointment letters, broader access for women to occupations and establishments, including night work with consent and safeguards, and stronger health protections for pregnant and nursing workers. India’s government has also described the new framework as strengthening minimum-wage rights, social security and protection for gig and platform workers.
Lebanon introduced statutory recognition for part-time, remote, seasonal and compressed work arrangements, while also creating an avenue for employees returning from maternity leave to temporarily move to part-time employment with employer agreement.
The Index also identified 20 legal changes that resulted in individual component scores falling to zero. Eleven were associated with countries that did not revise minimum wages within the assessment period, while nine followed legislative changes in Argentina, Egypt, Ethiopia, Guinea, India, Lesotho, Madagascar and Tunisia.
Researchers stress that a lower score on an individual component does not necessarily mean that a country’s entire labour system has deteriorated; some changes failed to meet a particular Index threshold even where other areas of protection improved.
Index is adapting to a changing workplace
The 2026 assessment also reflects how rapidly the world of work is changing. Its methodology has expanded from 46 to 48 components, with revised measures covering probationary periods, forced-labour remediation, platform work and maternity benefits.
One of the biggest changes concerns forced labour. A country can no longer receive the maximum score merely for formally prohibiting forced or compulsory labour. The revised test also considers penalties, permissible exceptions and access to effective remedies, including compensation.
As a result, 68 of the 168 countries assessed score zero on the revised component, including 56 countries that had scored one under the previous methodology.
Cabo Verde and Vanuatu provide examples of stronger legal approaches. Cabo Verde requires express consent from a convicted person before community work can be imposed, while Vanuatu combines a general prohibition with narrowly defined exceptions. Brazil similarly requires prisoners’ express consent before they can work for private entities.
The expansion of digital and platform work has also prompted a major revision. Index’s new Platform Economy assessment follows the adoption of ILO Convention 193 in June 2026.
Instead of relying on social-security coverage for self-employed workers as a proxy, the new approach examines whether employment status can be determined by the actual facts of the working relationship, rather than simply the label used in a contract.
Approximately 142 of the 168 jurisdictions reviewed have a legal route allowing the reality of the employment relationship to prevail over contractual classification.
Spain’s Rider Law and Belgium’s platform-specific presumption of employment are cited as examples, while Uruguay’s legislation covering delivery and passenger-transport platforms is described as closely reflecting the new international approach.
2026 Index introduces three additional questions covering childcare services, the right to leave work in situations of imminent danger and social dialogue. The inclusion of childcare represents a broader understanding of what enables people to remain in employment while managing family responsibilities. Countries can meet the new benchmark through public childcare services, regulated private facilities or gender-neutral employer obligations.
El Salvador’s 2024 reform illustrates the latter approach by allowing workers to select an Early Childhood Care Centre financed by their employer.
Freedom of association
Despite broad improvements in several areas, freedom of association remains the weakest-performing indicator globally. Index cautions that comparisons with 2024 should be made carefully because part of the change reflects the stricter methodology and the addition of new countries rather than deterioration in national law.
This distinction is important when assessing the overall global picture: a tougher measuring standard can produce lower scores even when countries have simultaneously introduced new protections.
Labour Rights Index is designed to make labour law easier to compare and understand across countries. For businesses, it provides another tool for identifying potential Human Rights Due Diligence risks in national legal frameworks.
The assessment links its indicators to major international and regulatory instruments, including the UN Guiding Principles, the ILO Multinational Enterprises Declaration, the OECD Guidelines, the EU Corporate Sustainability Due Diligence Directive and the EU Forced Labour Regulation.
2026 edition strengthens its links with UN human-rights treaties and, for the first time, incorporates material from the ILO’s Committee of Experts on the Application of Conventions and Recommendations and its Committee on Freedom of Association.
2026 Labour Rights Index offers a cautiously optimistic picture of the global labour landscape. Countries are introducing new protections, lawmakers are responding to emerging forms of work, and international standards are increasingly influencing national legislation.
