It was supposed to be implemented from April 1, then discussions on its implementation started in July, then preparations were made for its implementation from October 1. Now it is expected to be implemented in the new year.
Change in salary structure
The new year could see major changes in the pay structure of employees. Take home pay for employees may be reduced. In addition, the new labor rules also include provisions on working hours, overtime, break time, etc. We will understand each other, but first let’s find out what is the new wage code?
What is the new wage code?
The government has created 4 new wage codes consisting of 29 labor laws. Parliament in August 2019 changed the rules regarding three labor codes, industrial relations, job security, health and work status, and social security. These rules were passed in September 2020
These four codes
1- Code on Wedges
2- Industry Relations Code
3- Occupational Safety and Health (OSH)
4- Social Security Code
Read more- Central workers will get the benefit of the old pension scheme! The government has made preparations
All four codes will apply simultaneously
According to official sources, all these codes will be implemented simultaneously. Under the Wages Code Act, 2019, an employee’s basic salary cannot be less than 50% of the company’s (CTC) costs. At present many companies reduce the basic salary and pay higher allowances to reduce the burden on the company.
Overtime if you work more than 30 minutes
The new draft law provides for 30 minutes of overtime and 15 to 30 minutes of extra work. Under current rules, less than 30 minutes is not considered eligible for overtime. The draft rules state that no employee can be made to work for more than 5 hours continuously. He has been forced to take a 30-minute break every five hours.
The salary structure will change completely
After the Wage Code Act, 2019 comes into force, the pay structure of employees will be completely changed. The ‘take home salary’ of the employees will be reduced, as the increase in basic pay will make the PF of the employees more secure, i.e. their future will be more secure. It will also increase. That means take home salary will definitely increase. But employees will get more amount in retirement. New wage code will also be applicable for unorganized sector employees. Rules regarding salary and bonus will change and will remain. Employees working in each industry and sector will have equal pay.
During work, holidays will also be affected
According to Birjesh Upadhyay, a member of the EPFO board and general secretary of the Indian Trade Unions, the rules have been changed on important issues such as working hours, annual leave, pension, PF, home pay, retirement. According to an official in the Labor Reform Cell of the Ministry of Labor, the workers’ union has made a demand regarding PF and annual leave, demanding that the earned leave should be increased from 240 to 300.
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