The salaried people working in private and government sector may soon see major changes in their job hours, gratuity, PF and salary etc. There may be an increase in the gratuity and PF of the employees. At the same time, the salary coming home may be less. The balance sheets of companies will also be affected by the new rules of the government’s labor code. This is because of the rules of three Wage Code Bills passed in Parliament last year. The government wanted to implement the rules in the new labor code from April 1 this year, but they were postponed for the time being due to the unpreparedness of the states and to give more time to the companies to change the HR policy. However, it is expected to be implemented soon.
12 hour job
In the new draft law, a proposal has been proposed to increase the maximum working hours to 12. In the draft rules, there is a provision to include extra work between 15 and 30 minutes in overtime by counting 30 minutes. Under the current rule, less than 30 minutes is not considered overtime. The draft rules forbid any employee to work continuously for more than 5 hours. Instructions have also been given in the rules to give half an hour’s rest to the employees after every five hours.
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 salary structure of most of the employees, due to increase in basic salary, PF and gratuity money will be deducted more than before. PF is based on basic salary. With the increase in PF, the take-home or salary in hand will decrease.
Money received on retirement will increase
With the increase in gratuity and PF contribution, the money received after retirement will increase. The amount will increase. This will make it easier for the employees to lead a better life after retirement. With the increase in PF and gratuity, the cost of companies will also increase as they will also have to contribute more to the PF for the employees. This will have a direct impact on their balance sheet.
New rules will be implemented soon
Under the new definition of wages, allowances will be maximum 50 percent of the total salary. Significantly, for the first time in the country’s 73-year history, such changes are being made in the labor law. The government claims that it will prove beneficial for both the employer and the worker.