New Labor Code: The Modi government at the Center is preparing to make changes in the rules of labor law from October 1.
If this rule is implemented then your office hours will increase from October 1. 12 hours work has been proposed in the new labor law. Apart from this, your in-hand salary will also be affected by this law. Let us know what effect the new labor code can have on you.
Hence salary will decrease and PF will increase.
As per the new draft rule, the basic pay should be 50% or more of the total salary. This will change the pay structure of most employees, as the non-perks part of the salary is usually less than 50 per cent of the total salary. At the same time, the share of allowances in the total salary becomes even more. With the increase in basic salary, your PF will also increase. PF is based on basic pay. An increase in the basic pay will increase the PF, which means that there will be a cut in the take-home or hand-to-hand pay.
Retirement amount will increase
With the increase in contribution to gratuity and PF, the amount received after retirement will increase. This will make it easier for people to lead a happy life after retirement. The highest paid officers will see the most change in their pay structure and will be affected the most. With the increase in PF and gratuity, the cost of companies will also increase. Because they too will have to contribute more to the PF for the employees. These things will also affect the balance sheet of the companies.
Working hours proposed to be 12 hours
In the new draft law, a proposal has been proposed to increase the maximum working hours to 12. The draft rules of the OSCH Code provide for extra work between 15 and 30 minutes to be counted as overtime for 30 minutes. Under the current rule, less than 30 minutes are not considered eligible overtime. The draft rules have prohibited any employee to work continuously for more than 5 hours. Directives to give half-an-hour rest to employees after every five hours are also included in the draft rules.
