From October 1, the government will adopt a few adjustments to the country’s labour laws. According to sources, the new regulation would raise employees’ working hours from 9 to 12 hours, and your take-home pay will also alter once the new rule is enforced.
According to the new labour rules, allowances are capped at 50%, implying that half of the income would be basic wages, and contributions to the provident fund are computed as a percentage of the basic wage, which includes the basic pay and dearness allowance (DA).
According to the revised draught of the Labour Law, an employee’s basic pay will grow by 50% of the whole income, while the non-perks side of the payment will be less than 50% of the entire wage. Similarly, additional adjustments will be reflected in an employee’s CTC.
The Provident Fund (PF) of an employee will increase when the basic income rises; while this will result in less money in hand, it will be better for the future. The amount of an employee’s gratuity will also rise.
Extra labour performed between 15 and 30 minutes is considered overtime for 30 minutes per the OSH Code. The present regulation specifies that fewer than 30 minutes of overtime are not deemed admissible. The draught also forbids employees from working for more than five hours without a break and includes instructions to provide staff with a half-hour break every five hours.
How the following codes will alter the pay structure
- This would need salary restructuring since the increased obligations under the rules would raise companies’ provident fund responsibilities
- Employers have started destructing earnings into numerous allowances in order to decrease the company’s provident fund and income tax obligations
- The new industrial relations legislation also permits firms with up to 300 employees to lay off, retrench, or close with government approval
- Currently, the government has exempted all businesses with fewer than 100 employees from the need for layoffs, retrenchment, and closure permits
Many states have not yet finalised the regulations under the new codes, but some, including Uttar Pradesh, Bihar, Madhya Pradesh, Haryana, Odisha, Punjab, Gujarat, Karnataka, and Uttarakhand, have, according to PTI, distributed draught guidelines.