New wage code salary decode: The purpose of the new labor code is to further strengthen the social and economic security of the employed people. In this, special attention has been given to PF, take home salary, working hours, pension and the amount received by the employee after retirement.
New wage code salary decode: If employed people have to work four days a week, three days rest… then what to say. After leaving the job, if full and final payment is done in just two days or if there is 50% basic salary of CTC, how will it be….Actually, these are not empty things, but can turn into reality. The government has made preparations to implement the new labor code. Today we will discuss on this. Understand what other special things can happen in the new labor code. How beneficial will this be for the employees?
The final draft is with the government, almost everything is ready
The government has made preparations for changes in labor laws. Except one or two states, all have submitted their draft to the Center along with suggestions. On the basis of which the new labor code is almost ready. There is just a delay in implementing it. The new Labor Code passed in the Parliament in 2019 will replace 29 Central Labor Laws. The government has made 4 new labor codes in place of 29 central labor laws. These include Wage, Social Security, Industrial Relations and Occupational Security.
Salary structure will change completely
The purpose of the new labor code is to further strengthen the social and economic security of the employed people. In this, special attention has been given to PF, take home salary, working hours, pension and the amount received by the employee after retirement. With the implementation of the new labor code, the salary structure of the employees will change completely. According to this, the basic salary of an employee cannot be less than 50% of the company’s CTC. If the basic salary increases, then the PF contribution will also increase. This will definitely reduce the take home salary but the employee will get more amount on retirement. The new labor code will also be applicable for the employees of the unorganized sector.
Optional will be 4 days work, 3 days off
According to the new labor code, companies will be allowed to increase the working hours of employees from 9 hours to 12 hours. However, this facility will be optional. In this, the employee will have to work only 4 days in a week. While there will be a weekly holiday of 3 days. According to the new labor code, in case of resignation, removal or termination, the company will have to make full and final payment of the employee within two days of the last day of the employee’s work. Usually companies take one and a half to two months for its settlement. PF and gratuity are not included in this scope.
Work on integration of e-shram portal
The government is not only preparing to implement the new labor code, but also plans to integrate its e-shram portal. So that the database of workers can be linked with the states. Actually, the government had launched the e-shram portal in August last year. So that they can get the benefit of social security related schemes of the government. Apart from this, the emphasis of the government is on increasing the participation of women in the job profession. At present, the government is gearing up to implement the new labor code. And its purpose is to ensure the financial security of the employed people.
New labor code
– Government ready, may be implemented anytime
– 29 will replace central labor laws
– 29 old labor laws will be replaced by 4 labor codes
Included in the new labor code
– Wage, Social Security
– Industrial Relations
– Occupational Security
Features of the ‘New Labor Code’
– PF, take home salary, working hours will be fixed
– focus on pension, retirement amount
New Labor Code, Salary Decode
– Salary structure will change
– CTC will be 50% of basic salary
– PF contribution will increase due to increase in basic salary
– Employee’s ‘take home salary’ will decrease
– Will get more amount on retirement
– Will be implemented in unorganized sector too
Features of the ‘New Labor Code’
– 4 days work in a week, 3 days rest option
– Approval to increase working hours from 9 to 12 hours
Features of the ‘New Labor Code’
– Employee will not be upset if job is lost or quit
– Full and final payment two days after ‘Last working day’
– At present, companies take one and a half to two months time
Government’s focus
- Scheme of Integration of E-Shram Portal
- Emphasis on linking the database of workers with the states
- Emphasis on ensuring economic security of workers
- Emphasis on giving benefits of government schemes to workers
- Emphasis on increasing the participation of women in the labor force
