New wage code may come into force from July 1, less pay and more PF, 12 hours of work required
The central government can implement four labor codes from July 1. These include wages, social security, industrial relations, occupational safety, health and working conditions. If these labor codes are implemented, the new wage code will affect the working hours, salary, PF contribution, gratuity and paid leave of the employees. However, these are initial estimates. So until the government notifies the rules officially. Until then, nothing concrete should be speculated.
Currently, 23 states have pre-published draft rules on these laws. At the same time, the Center has completed the process of finalizing the draft rules of these codes in February 2021. The government had notified four labor codes. Labor is a contemporary subject. Therefore, the Center wants the state to implement it immediately.
salary will be less
Under the Wage Code 2019, the government can cut home pay by increasing PF and gratuity. This is based on the premise that in the new wage code, an employee’s basic pay will be at least 50% of their net monthly CTC. If this provision is implemented, the employees will not be able to get more than 50 per cent of their basic monthly salary as allowances.
PF will increase
Employee gratuity and PF contribution will increase. In such a situation, from where can the take home pay of the employees be reduced. Gratuity and PF can also increase.
12 hour work week
Experts believe that the new draft will affect the working hours of the employees. According to media reports, employees can be allowed to work for 4 days, but they will have to work 12 hours in those four days. The Labor Ministry has clarified that it is mandatory to work 48 hours a week.
holiday policy change
Changes can be seen in the cases of Earn Lett. Trade unions are demanding to increase the number of holidays in the new code. At present there are 240 to 300 holidays in different departments. Employees can take cash leave after 20 years of service.