New Delhi: The four work codes on wages, social security, industrial relations and occupation safety, health and working conditions are probably going to be executed by the following financial year, a senior authority has told news office PTI. When carried out, the new pay code will affect working hours, pay rebuilding and PF commitment among the noticeable ones.
The authority added that somewhere around 13 states have pre-distributed draft rules on these laws, while the Center has finished the method involved with settling the draft rules on these codes in February 2021.
The central government has advised four work codes, in particular, the Code on Wages, 2019, on August 8, 2019, and the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 on September 29, 2020.
Since labour is a concurrent subject, the Centre wants the states to implement these as well in one go, added the official.
The government’s notification on Code on Wages 2019 may reduce the take-home pay of employees next financial year ie, April 2021 while components like PF and Gratuity might rise.
This is based on the grounds that the new wage code mentions provision entailing that the employee’s basic salary will be at least 50 percent of his/her net monthly CTC. Hence, if this provision comes into effect, it will mean that employees will not be able to get more than 50 percent of his/her net monthly salary in form of allowance.
This likewise implies that there will be a resulting ascend in tip and PF commitment of the worker. Subsequently, while the salary of the workers might be diminished, the Gratuity and PF part might rise.
Specialists likewise accept that the new draft will affect the functioning long periods of representatives for certain media reports saying that representatives might be permitted a four-day week’s worth of work from the following year, however they should labor for 12 hours on those four days.
The work service has evidently clarified that 48-hour week by week work necessity is an unquestionable requirement.
