New Wage Code Update: In the new draft law, there is a provision to include extra work between 15 to 30 minutes in overtime by counting 30 minutes. Under the current rule, less than 30 minutes is not considered eligible for overtime.
New Delhi: New Wage Code Update: The government is going to implement new labor laws across the country from October 1. The government is trying to fine-tune its rules more before implementation, so that after implementation, there is no problem. Let us tell you that earlier it was to be implemented from 1st April, then the discussion of implementing it in July gained momentum, now it is set to be implemented from 1st October.Also Read: Aadhar Card Link With LIC Policy know benefits of lic and aadhar linking check here all details
Salary structure change from 1st October
That is, from October 1, a big change can be seen in the salary structure of the salaried 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?Also Read: Why Axis Bank Charge 167 rupees from saving account Check here all charges details
What is New Wage Code?
The government has prepared 4 new wage codes by combining 29 labor laws. Parliament on 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 2020Also Read: Good News for BSNL user now get 425 days validity in Rs 2399 annual plan
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.Also Read: Gold Silver Price Today on 23 August 2021 Gold prices today stay weak for 4th day in a row
Overtime if you 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.Also Read: SBI Alert: Customers getting these message related to pan card be aware, know all details here
Salary structure will change completely
After the implementation of the Wage Code Act, 2019, the salary structure of the employees will change completely. The employees’ (Take Home Salary) 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 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.Also Read: What is loan NOC and why is it important to collect it from your Lender and bank
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 of employees, annual holidays, pension, PF, take home salary, retirement. 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.
