New Wage Code Update: In the new draft law, there is a provision to include extra work between 15 and 30 minutes in overtime by counting 30 minutes. Under the current rule, less than 30 minutes is not considered eligible for overtime.
New Wage Code Update: The discussion has started once again regarding the implementation of New Wage Code. It is being told that by April this labor law can be implemented. At present, the government is engaged in further fine-tuning its rules before implementation, so that there is no problem after implementation. Let us know what will be the effect on you after the implementation of this law.
Change in salary structure
There can be a big change in the salary structure of the employed people. There may be a decrease in the Take Home Salary of the employees. Apart from this, provisions have also been made in the new labor code regarding things like working hours, overtime, break time. We will understand it one by one, but first of all let us understand that what is the new wage code?
What is New Wage Code?
The government has prepared 4 new wage codes by combining 29 labor laws. Parliament had in August 2019 changed the rules related to three labor codes, industrial relations, safety of work, health and working conditions and social security. These rules were passed on September 2020
These are the four codes
1- Code on Wages
2- Industrial Relations Code
3- Occupational Safety and Health (OSH)
4- Social Security Code
All four codes will be applicable simultaneously
According to government sources, all these codes will be implemented simultaneously. According to the Wage Code Act, 2019, the basic salary of an employee cannot be less than 50% of the cost of the company (CTC). At present, many companies reduce the basic salary and give more allowances from above so that the burden on the company is reduced.
Overtime if worked 30 minutes more
In the new draft law, there is a provision to include extra work between 15 and 30 minutes in overtime by counting 30 minutes. Under the current rule, less than 30 minutes is not considered eligible for overtime. In the draft rules, no employee can be made to work continuously for more than 5 hours. It has been made mandatory to give him a break of 30 minutes after every five hours.
Salary structure will change completely
After the implementation of the Wage Code Act, 2019, the salary structure of the employees will change completely. The ‘Take Home Salary’ of the employees will decrease, because by increasing the Basic Pay, the PF of the employees will be more secure, that is, their future will be more secure. Along with the PF, the contribution to the gratuity will also increase. That is, the take home salary will definitely increase. But the employee will get more amount on retirement. The new wage code will also be applicable for the unorganized sector employees. 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.
Working hours, holidays will also be affected
According to EPFO board member and Bharatiya Mazdoor Sangh General Secretary Virjesh Upadhyay, there is a change in the rules on important issues like working hours, annual holidays, pension, PF, take home salary, retirement of employees. According to an official of the Labor Reform Cell of the Ministry of Labor, the labor union has made a demand regarding PF and annual holidays, the union is demanding that the Earned Leave should be increased from 240 to 300.
Let us tell you that earlier it was to be implemented from 1st April 2021, then the discussion of implementing it in July gained momentum, after that it was to be implemented from 1st October. However, now it is being told that it can be implemented by April.
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