As per the new labor code, companies can increase the working hours but would have to give an additional weekly off.
Since the Center intends to apply new labour rules starting on July 1, the in-hand salary, contribution to the Employees’ Provident Fund, and working hours may alter dramatically. The newly established wage codes specify a number of changes that will cause employees’ work hours, PF payments, and take-home pay to increase. The new labour laws will go into effect on July 1 and are currently being implemented by the government. How will the new labour law affect your take-home pay and PF contributions as of July 1? The Center proposes to apply new labour rules starting on July 1. The in-hand salary, contribution to the Employees’ Provident Fund, and working hours may alter dramatically.
The newly established wage codes specify a number of changes that will cause employees’ work hours, PF payments, and take-home pay to increase.The new labour laws will go into effect on July 1 and are currently being implemented by the government.
A few states have yet to establish the regulations for all four labour codes, nevertheless. In a written response to the Lok Sabha, Rameshwar Teli, the minister of state for labour and employment, stated in a written response that only 23 states and Union Territories (UTs) had issued the draught rules under the Code on Wages.
The new legislation allows businesses to raise working hours from 8 to 9 hours per day to 12 hours. However, they will need to give the workers three paid days off each week. Therefore, there will be four working days instead of five, but the number of hours worked during the week as a whole won’t change. The new wage rule requires 48 total hours of work each week.
The take-home pay of the employees will also change dramatically since, under the new wage code, the basic compensation must be at least 50% of the gross monthly payment. Additionally, this will result in higher PF contributions from both employers and employees. For workers in the private sector, this will have a greater impact on take-home pay. The retirement corpus and gratuity amount will rise in accordance with the new labour legislation.
The 29 central labour laws were combined to form the four labour codes, which include pay, social security, labour relations, occupational safety, health, and working conditions.
The codes have been approved by parliament, but because labour is a topic covered by the Concurrent List of the Constitution, the states must notify the public of the new codes’ regulations.