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New rule changed in take-home salary, delay in working hours Read details



Delay in changing take-home pay, working hours rules

New labor laws, which will bring in significant changes in working hours including take-home pay, PF (provident fund) contribution and working hours and days in a week, have been passed through Parliament but have been delayed since Indian states have not yet notified these rules.

While the Center had planned to implement these new labor laws from July 1, the laws have not come into force as some states are yet to frame rules under all the four labor codes.

Four new labor codes were created by reviewing and combining the previous 29 central labor laws, including wages, social security, labor relations, occupational safety, health and working conditions.

Under the new wage code, the basic pay component should be 50 per cent of the total salary, thereby reducing the take-home increment in contribution to the Employees’ Provident Fund as that part has been earmarked as 12 per cent of the total salary. basic salary.

Under the new labor laws, there will be an increase in the retirement fund and gratuity amount due to an increase in the base-salary component of the total wages of the employees.

The code also says that companies can increase the working hours of employees to 12 hours from the current 8-9 hours, but they will be required to take three weekly offs.

So, the number of working days per week will be reduced to four, but the number of working days per week will remain the same. According to the new wage rule, a total of 48 hours are required every week.

The amendment to the newly prescribed labor codes should have been effective from July 1. Yet, only 23 states and Union Territories (UTs) have issued draft guidelines under the Code on Wages, according to a written reply by the Minister of State for Labor and Labor. Rojgar Rameshwar Teli on being asked about the timing of implementation in Lok Sabha.

As per the constitution, labor matters need to be notified by the states to implement the laws made and approved by the parliament.


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