New wage code latest news: There may be some delay in implementing the new wage code i.e. the new labor law. At present, its final process is going on. It is to be implemented in this financial year. Earlier it was discussed that it could be launched in October. But, according to the information received from the sources, the input received from the state is still being considered. Therefore, the deadline of October 1 will also go out. There is also a discussion between the Labor Ministry and the Labor Union regarding some changes in the new labor law. According to sources, its draft line may be released soon. Only then will it be notified.
Decision may be taken on EPF, Salary, Pension
According to EPFO board member and General Secretary of Bharatiya Mazdoor Sangh, Virjesh Upadhyay, some important changes are to be made in the new labor laws. Due to the delay on the part of the states, there is a delay in its implementation. Social Security is an important issue for the employees. Let us tell you, the rules are to be applied on important issues like working hours of employees, annual holidays, pension, PF, take home salary, retirement. The consent of the states is also necessary to implement the new rules. So it will be delayed now. The draftline and notification of the new wage code will be issued before the implementation.
Demand to increase holiday limit
An official of the Labor Reform Cell of the Labor Ministry said on the condition of anonymity that a demand has been placed by the labor union regarding PF and annual holidays. Several meetings have already been held regarding this issue. The union wants that the limit of earned leave should be increased from 240 days to 300 days. Separate rules can also be made for the building and construction sector, beedi workers, journalists and people associated with the field of cinema.
EPF rules will change
According to Virjesh Upadhyay, a demand has been made from the government that the eligibility of Employees’ Provident Fund Scheme (EPF) should be increased from Rs 15,000 monthly salary to Rs 25,000 or at least Rs 21,000 like the Employees’ State Insurance Scheme. The final round of discussions on the laws is going on. Efforts are being made to resolve all the issues and only then the rules will be notified.
What is the new wage code?
The central government has created 4 new codes by combining 29 central labor laws. These include the Industrial Relations Code, Code on Occupational Safety, Health and Working Conditions Code (OSH), Social Security Code and Code on Wages. Some new concepts have been introduced in labor codes. But, the biggest change is the expansion of the definition of ‘wage’. The new labor code is aimed at consolidation. 50% of the salary will be directly included in the wages.
What’s in the new wage code?
According to the Wage Code Act, 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.
Take home salary will decrease, retirement will improve
According to experts, if the PF of employees will be deducted more due to increase in Basic Pay, then their take-home salary may be less, but their future will be more secure. This will give more benefit on their retirement, as their contribution to Provident Fund (PF) and Monthly Gratuity will increase.
