New Wage Code India Update: The coming month of July can bring a lot of changes for the workers, laborers, workers working in the office, mill, factory. Because the discussion of the new Wages Code has once again gained momentum.
New Delhi: New Wage Code Update: The coming month of July can bring a lot of changes for the workers, laborers, workers working in the office, mill, factory. Because the discussion of the new Wages Code has once again gained momentum. The new wage code was to be implemented from April 1, but the Ministry of Labor postponed it. Now it can be implemented from July.
If this happens, then a big change can be seen in the salary structure of the employed people. There may be a decrease in the Take Home Salary of the employees. Apart from this, provisions have also been made in the new labor code regarding things like working hours, overtime, break time. We will understand it one by one, but first of all let us understand that what is the new wage code?
What is New Wage Code?
The 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 Wages
According to the Wage Code Act, 2019, the basic salary of an employee cannot be less than 50% of the cost of the company (CTC). At present, many companies reduce the basic salary and give more allowances from above so that the burden on the company is reduced.
Salary structure will change completely
After the implementation of the Wage Code Act, 2019, the salary structure of the employees will change completely. The employees’ (Take Home Salary) will decrease, because by increasing the Basic Pay, the PF of the employees will be more secure, that is, their future will be more secure. Along with the PF, the contribution to the gratuity will also increase. That is, the take home salary will definitely increase. But the employee will get more amount on retirement. The new wage code will also be applicable for unorganized sector employees. 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.
Application deadline July
EPFO board member and Bharatiya Mazdoor Sangh general secretary Virjesh Upadhyay says that there are 4 labor codes included in the labor laws. How these four will be implemented has to be decided. The Ministry of Labor will soon issue separate notifications of all the four codes. By July, all companies will also have to make changes in the software at their own level. However, due to the conditions of the corona epidemic that have been there till last month, companies may have less window left. But, for now, the deadline is July.
Working hours, holidays will also be affected
According to Virjesh Upadhyay, there has to be a change in the rules on important issues like employees’ working hours, annual holidays, pension, PF, take home salary, retirement. The new rules are likely to be changed before July. According to an official of the Labor Reform Cell of the Ministry of Labor, the labor union has made a demand regarding PF and annual holidays, the union is demanding that the Earned Leave should be increased from 240 to 300.
The central government is going to take a big decision soon. After this decision, your Provident Fund (PF) will increase but the salary you take home will decrease. Modi government can implement 4 new labor codes. The government will take these decisions forward in the coming days. Once these laws come into force, there will be significant changes in Basic Pay and PF.
Cannot work continuously for more than 5 hours
If the Labor Code is implemented, the rules for your working hours to overtime will also change. The new draft law proposes to increase the maximum working hours to 12. In the draft rules, over time between 15 and 30 minutes will also be counted as 30 minutes. There is also a rule to include it in overtime. In the draft rules, no employee can be made to work continuously for more than 5 hours. It has been made mandatory to give him a break of 30 minutes after every five hours.
