New Wage Code Alert: Under the new labor law, you can now get overtime for working extra for half an hour. Earlier, the new pay code was to come into effect from April 1, 2021, it was postponed till July 2021. However, it may come into force in April 2022.
New Wage Code Alert: According to all the media reports, New Wage Code can be implemented under the new labor law , which may change your salary structure . Especially there may be a change in the take-home salary . Also, it can have an effect on your extra work. If you have to work overtime and you were not paid for it, now you can get overtime for working extra work.
At present, the government is making changes in the wage code regarding things like working hours, overtime, break time.
What is New Wage Code?
- The government had prepared four wage codes by combining 29 labor laws – Code on Wages, Industrial Relations Code, Occupational Safety and Health (OSH) and Social Security Code.
- In August 2019, changes were made in three labor codes. Industrial relations, safety of work, health and working conditions and social security.
- According to the Wages Code Act, 2019, the basic salary of an employee can not 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 than above, so that the burden on the company is reduced.
- As per the new implementation of New Wage Code, there will be a provision 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 are not considered eligible for overtime.
- 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.
- According to the news published in DNA, according to EPFO board member and Bharatiya Mazdoor Sangh and General Secretary Virjesh Upadhyay, in the rules on important issues like working hours, annual leave, pension, PF, take-home salary, retirement of employees. Change has been made.
- Earlier, the new pay code was to come into effect from April 1, 2021, it was postponed till July 2021. However, it may come into force in April 2022.
