New Wage Code Update. The government is preparing to bring new labor laws soon. After release of this new wage code you will have to go to the office only for 4 days and you can stay on leave for the remaining 3 days.
New Wage Code Update, which will be implemented soon. A lot will change from your salary, allowances, holidays and working hours etc. These rules were to come into effect from April 2021, which was expected to be implemented later in July, then in October.
After the arrival of this new labor code or new wage code bill 2021, the employed and laborers will get a lot of benefit, but the date of its arrival is not yet fixed. However, it is believed that in the new year, the government can implement it.
What is New Wage Code?
The Central government has prepared 4 new wage codes by combining 29 labor laws. these are the four codes
1- Industrial Relations Code
2- Code on Occupational Safety
3- Health and Working Conditions Code (OSH)
4- Social Security Code and Code on Wedges
New laws related to labor reforms have been passed by the Parliament. Now to implement them.
According to the Wage Code Act, 2019, the basic salary which company give to employee cannot be less than 50% of the cost of the company (CTC). Right now, many companies reduce the basic salary and give more allowances from above so that the burden on the company is reduced.
Change in Salary structure
After the implementation of the Wage Code Act, 2019, the salary structure of the employees will change completely. ‘Take Home Salary’ of the employees will decrease, because by increasing the Basic Pay, the PF of the employees will be deducted more and their future will be more secure. Along with the PF, the contribution to the gratuity will also increase.
The take home salary for all employee will definitely decrease but the employee will get more amount on retirement. They got more money in their old age. This new wage code will also be applicable for the employees of the unorganized sector which work in mainly as labor. The rules related to salary and bonus will change and there will be equality in the salary of employees working in every industry and sector.
48 hours work rule
According to the new wage code, the employees will now have to work for 12 hours, so working hours will increase under the new rules. But employee will have to work only 4 days in a week and he will be given leave for the remaining 3 days.
However, some unions are raising questions about this rule. On this, the government said that there would be only 48 hours of work in a week.
Overtime Work Rule
According to the new rules overtime work rule also change, now work between 15 minutes to 30 minutes will also be counted as 30 minutes and will be included in overtime. Right now, as per current rules, time less than 30 minutes is not considered as overtime. Also, no employee can’t do work continuously for more than 5 hours. It is necessary to give a break of half an hour after every 5 hours.
PF contribution will increase
After the issuance of new rules, the share of contribution to be made as PF will increase. And take home salary will be less. And the allowances will be limited to 50 per cent. With this, 50 percent of the total salary of the employees will directly become the basic salary.