New wage code latest update: 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: Waiting for new wage code has been going on for a long time. The Modi government wants to implement the Labor Code of the New Wage Code. It is expected that this can be implemented in the new financial year. According to sources, the draft inputs of the state are being discussed. There is also news that some changes are being made in the new labor laws.
The Modi Government at the Center can make some amendments in the 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.
Salary structure may change
New draft guidelines can be issued after discussion between the Labor Ministry and the Labor Union. 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. Along with this, the possibility of increasing the tax burden was also expressed. 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.
What can be the amendment?
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 a 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%.
There will also be a change in the rules of layoffs, company closure
In the new labor code, rules have also been made regarding layoffs and company closure. In the current situation, a limit of 300 personnel was fixed in this. But, there was a lot of opposition from the Labor Union regarding this. If sources are to be believed, now changes are likely to be made in this too. 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 and member of the CBT board, the industry had opposed the introduction of 50% allowance in the new salary structure. So it can be reconsidered. 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. The government is focusing more on saving for retirement under Social Security.
