Rules related to salary and bonus will change and there will be equality in the salary of employees working in every industry and sector
According to media reports, from April 2022, the New Wage Code can be implemented across the country. As soon as the new wage code is implemented, on one hand there will be a reduction in the take home salary. There will be an increase in the PF of the same people, along with this there is another good news for such employees. Those who do not get anything as a reward after working overtime.
According to reports, a new labor law may be introduced under the New Wage Code which may lead to a change in your wage structure. At present, the government is making changes in the wage code regarding things like working hours, overtime, break time. Earlier the New Wage Code was expected to be implemented from April 1, 2021, but it was postponed till July 2021. However it can be implemented in April 2022.
There will be a provision as per the new implementation of the New Wage Code. Where if an employee works extra between 15 to 30 minutes in overtime counting 30 minutes then he will get additional pay. Under the current rule, less than 30 minutes is not considered overtime. The government has prepared 4 new wages by combining 29 labor laws. The Code on Wages, Industrial Relations Code, Occupational Safety and Health and Social Security Code are being considered for implementation simultaneously.
After the implementation of the Wage Code Act 2019, the salary structure of the employees will change completely. After increasing the basic salary and PF of the employees, the ‘Take Home Salary’ will decrease. Along with PF, his contribution to gratuity will also increase. The new pay code is also applicable for employees in the unorganized sector. 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.
What is New Wage Code?
The government had created four wage codes by merging 29 labor laws – the Code on Wages, the Industrial Relations Code, the Occupational Safety and Health (OSH) and the Social Security Code. In August 2019, changes were made to three labor codes, Industrial Relations, Safety of Work, Health and Working Conditions and Social Security.
As per the Wages Code Act 2019, the basic salary of an employee cannot be less than 50 per cent of the cost of the company (CTC). At present many companies cut the basic salary and give more allowances over the above so that the burden on the company is less.
