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Employees will not work more than five hours continuously, from April 1, Modi government can change the working hours and the rules of retirement

From April 1, 2021, there may be a big change in your gratuity, PF and working hours. Gratuity and provident fund (PF) item of employees will increase. At the same time, the money in hand (take home salary) will decrease. Even the balance sheets of companies will be affected. The reason for this is the three Wages Code Bill (Code on Wages Bill) passed in Parliament last year. These Bills are likely to come into force from April 1 this year.

Under the new definition of wage, allowances will be a maximum of 50% of the total salary. This means that the basic salary (basic salary and dearness allowance in government jobs) should be 50 percent or more of the total salary from April. Significantly, for the first time in the country’s 73-year history, changes are being made in the labor law in this way. The government claims that it will prove beneficial for both employers and workers.

Proposal to change 12 hours of work hours

The new draft law proposes to increase the maximum working hours to 12. The draft rules of the OSCH Code also provide for the addition of between 15 to 30 minutes of overtime by counting 30 minutes. Under the current rule, less than 30 minutes is not considered overtime eligible. Draft rules prohibit any employee from working continuously for more than 5 hours. Instructions to give employees a rest of half an hour after every five hours are also included in the draft rules.

Hence salary will decrease and PF will increase

According to the new draft rule, the basic salary should be 50% or more of the total salary. This will change the pay structure of most employees, as the non-allowance portion of the salary is usually less than 50 percent of the total salary. At the same time, the share of allowances in the total salary becomes even more. Increasing basic salary will also increase your PF. PF is based on basic salary. Increasing the basic pay will increase the PF, which means there will be a cut in take-home or on-hand pay.

Also read: CBSE 10th English Sample Paper 2021: Watch here CBSE 10th English Sample Paper and Prepare Strategy

Retirement amount will increase

Increase in contribution to gratuity and PF will increase the amount received after retirement. This will make it easier for people to live a pleasant life after retirement. The salary structure of high-paid officers will undergo the biggest change and will be the most affected. Increasing PF and gratuity will also increase the cost of companies. Because they too have to contribute more to the PF for the employees. The balance sheet of companies will also be affected by these things.


Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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