New wage code latest news: Some amendments are being made before the new labor laws are implemented. The Modi government can also make changes in the salary structure of the Labor Code.
New wage code latest news: The wait for new wage code has been going on for a long time. The Central Government is preparing to implement it for the last one year. But, no final decision was taken due to delay on the part of the states. Hopefully it will be implemented this year. According to information received from sources by Zee Business Digital, the draft inputs of the state are being discussed. There is also news that some changes will be made in the new labor laws.
Some amendments can be made in the New Labor Code. Meaning there may be changes regarding the salary structure in it. Along with this, work is also going on on a social security welfare system for gig and platform workers. Let us tell you, the new Labor Code has been passed by the Parliament in 2019.
When can new labor laws come into force
According to the Union Minister of State for Labor and Employment, Rameshwar Teli, talks are being held with all the states continuously. New draft rules are being prepared. Whenever a big scheme has to be launched, it takes time. In this the participation of the states is necessary. He said that at present no deadline has been fixed for this. But, it is expected that the Labor Code will be implemented in the year 2022 itself. At the same time, according to sources in the Ministry of Labor, the draft will be finalized by the end of May 2022. After that they can be implemented.
There will be a big change in the salary structure
There were also some disagreements regarding the salary structure, but now after discussions between the Labor Ministry and the Labor Union, new draft guidelines are being prepared. The guidelines that have been prepared so far. There was talk of keeping 50% of the total CTC in basic salary and 50% in allowance. There was talk of reducing in-hand salary of the salaried person. There were also possibilities of increasing the tax burden. But, now there may be a slight change in the structure. If sources are to be believed, then as soon as the new wage code is implemented, the part of allowance will not be kept at 50% directly. Rather, they will be increased gradually.
What can be changed in the allowance?
The new amendment in the New Wage Code will be that the limit of allowance will be kept 70-75% in the first year of its implementation. Like companies do in the current structure. But, gradually it will be reduced to 50 percent in 3 years. If you understand in simple way, 70% allowance will be kept and 30% basic salary in the first year of implementation. After this, the share of allowance will be 50% in 3 years and the basic salary will be increased to 50%.
Company closure rules will also change
Rules have also been made in the Labor Code regarding layoffs and company closure. In the current situation, a limit of 300 personnel was fixed in this. But, now this is also likely to change. If sources are to be believed, the idea is to reduce it from 300 to 100 employees. Under the Industrial Relations Code, government approval will be required for companies with up to 100 employees to lay off employees or close business.
Which allowances will be included?
According to Virjesh Upadhyay, general secretary of the Bharatiya Mazdoor Sangh, the industry had opposed the introduction of 50% allowance in the new salary structure. That’s why it is being changed. The new labor code will also include Basic Pay, Dearness Allowances (DA) and Retaining Allowance. House Rent Allowance (HRA) and Overtime Allowance will not be included. With the inclusion of the allowance, the employee and the employer will have to contribute more to the provident fund. The amount of gratuity will also increase.
