The Congress leader had been suffering from various ailments, reports said.
A five-time Member of Parliament, the 86-year-old represented the Jhunjhunu constituency of Rajasthan.
He is survived by his wife, two sons and a daughter.
Prime Minister Manmohan Singh condoling the death said: "He was a valued colleague and dedicated social worker."
Singh has also called a special meeting of the Cabinet to pay condolences to Ola.
Gujarat Chief Minister Narendra Singh tweeted: "Sad to hear of Shri Sis Ram Ola's demise. He spent years in public life & remained committed to serving people. May his soul rest in peace."
Born on July 30, 1927, Ola had served eight terms as a Member of the Rajasthan Legislative Assembly from 1957 to 1990 and then from 1993 to 1996.
He was elected to the 11th Lok Sabha in 1996 and served as Union Minister of State (independent charge) for Chemicals and Fertilisers and later for Water Resources.
He was re-elected to the 12th Lok Sabha in 1998, the 13th in 1999 and the 14th in 2004, when he was made Cabinet Minister for Labour and Employment and later for Mines.
He was re-elected to the 15th Lok Sabha in 2009 and in June this year was inducted into the Union Cabinet as Minister for Labour and Employment.
Ola was conferred the Padma Shri award in 1968 for social work.
--IBNS (Posted on 15-12-2013)