The government is all set to enforce four labour laws on pay, social security, labour relations, and workplace health, safety, and working conditions on July 1. The new wage code will have an impact on the employees’ working hours, compensation, PF contribution, gratuity, and money received in place of paid leave if these labour codes are put into effect. These, however, are only conjectures at this point. Therefore, until the government formally announces the rules, nothing will change.
Which laws are coming into force?
Let us notify you that 23 states have already written and published the rules for this legislation. In February 2021, the Center finished the process of finalising the draught rules for these codes. It should be noted that four labour laws had been announced by the central government. Among them is the Code on Wages, 2019, which was announced on August 8, 2019. On September 29, 2020, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Code on Occupational Safety, Health, and Working Conditions, 2020 were all made public.
Changes in salary
A labour is a concurrent subject, as a result, the union government wants all of the states to adopt it simultaneously. Let us inform you that the in-hand pay, or personal disposable pay, may decrease as a result of the government’s notice of the 2019 wage Code. However, this may result in higher PF and gratuity. This basically stems from the new wage code’s requirement that the employee’s basic pay be at least 50% of his net monthly CTC. Employees would therefore not be permitted to receive more than 50% of their net monthly wage in allowances if this rule became effective. The employee’s gratuity and PF contribution will therefore rise. The take-home pay of employees will go down but gratuities and PF might go up.
Effects on workdays
The revised change is rumoured to have an impact on the employees’ work schedules. There are anticipations that workers would be given the option of working four days a week, but they would have to put in 12 hours on each of those days. Employees may be required to work 48 hours a week, according to the Ministry of Labour.
Changes in paid leave
The circumstances in which paid leave is granted may alter. Currently, there are 30 holidays offered by government agencies each year, and those working in the military are entitled to 60 paid leave. Up to 300 holidays can be carried over by employees, but under the new legislation, that number can climb to 450. There are currently between 240 and 300 holidays across many departments. Only after 20 years of service are employees eligible to use their leave days in cash.