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HomeEconomyWage structure, working hours, holidays to be changed under new labor laws;...
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Wage structure, working hours, holidays to be changed under new labor laws; know the details MPNRC

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The government, after several months of working on it, has released four new labor codes that aim to reform the rules governing the old relationship between employees and their employers. The newly laid down labor codes stipulate a number of schemes under which there will be significant changes in terms of employee’s salary, his PF contribution and working hours. Labor codes also include changes in working conditions, labor welfare, health and safety. These laws, once enacted, will require organizations across the country to undergo a paradigm shift.

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Here’s what changes can be expected under the four new labor codes

working hours and days off

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One of the major things that is likely to be implemented under the new labor laws is the change in working days. After the implementation of the new rule, companies will be able to get employees to work for four days instead of five and there will be three weeks of leave. However, it has a catch. Employees will have to work 12 hours a day instead of eight, as the working hours will not be reduced. This will be applicable to every industry, but may change from one state to another depending on the rules laid down by a particular state.

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pf contribution and take home salary

Another major change that it is going to bring is the ratio of take home salary and contribution to provident fund of employees and employers. According to the provision of the new code, the basic salary of the employee should be 50 percent of the gross salary. While this will mean that the PF contribution of the employee and the employer will increase, the take home salary will be reduced for some employees, especially those working in private firms. Under the provisions of the new draft rules, along with the amount received after retirement, the amount of gratuity will also increase.

Annual Holidays

Under the new labor laws, the central government also wants to rationalize the leave available to an employee during his tenure in a company. The policy of carrying forward leave to the next year and encashment of leave is also being rationalised. The government is also recognizing the work from home structure, which has become prevalent in its draft model applicable to the service industry during COVID-19. On the other hand, the new labor codes have increased the eligibility requirement for leave from 240 days of work to 180 days of work in a year. This means that to be eligible for leave, an employee has to work for 240 days after joining the new job.

Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and the Union Territory of Jammu and Kashmir are among the states that have already drafted labor laws. Is.

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