Under the new definition of wages, the allowance will be a maximum of 50 percent of the total salary. This means that basic salaries (basic salaries and expensive allowances for government jobs) should be 50 percent or more of the total salary from April.
New Delhi: From April this year, your gratuity, PF (PF ) and working hours may change drastically. Employee Gratuity and Provident Fund (PF) will increase. In addition, the Take Home Salary will be reduced. Even the company’s balance sheet will be affected. This is because of the three wage code bills passed in Parliament last year. The bill is expected to take effect on April 1 this year.
According to the new definition of wages, the allowance will be a maximum of 50 percent of the total salary. This means that basic salaries (basic salaries and expensive allowances for government jobs) should be 50 percent or more of the total salary from April. For the first time in the country’s 73-year history, labor laws are being changed in this way. The government claims that this will prove beneficial for both employers and workers.
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Under the new draft rules, the base salary must be 50 or more of the total salary. This will change the pay structure of most employees, as the non-allowance portion of the salary is usually less than 50 percent of the total salary. At the same time, the share of the allowance in the total salary increases. Increasing the base salary will also increase your PF. PF is based on base salary. Which means it’s about to be the most delusional time of the year, as well.
The increase in gratuity and PF will increase the amount received after retirement. This will make it easier for people to live happily ever after. The pay structure of highly paid officers will be the most changed and most affected. Increasing PF and gratuity will also increase the cost of companies. Because they also have to contribute more to the PF for employees. Companies’ balance sheets will also be affected by this.
Similarly, the new draft law proposes to increase the maximum working time to 12 hours. The draft rules of the OSCH Code also provide for the addition of overtime within 30 to 30 minutes of overtime. Currently, less than 30 minutes are not considered overtime. The draft law prohibits any employee from working continuously for more than five hours. The draft law also includes instructions for employees to rest half an hour every five hours.
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