Salary Structure Of Employees likely to change from April, Know All Details Here How New Wage Code Will Affect You
INDIA (KN): With the new financial year starting from April 1, Employees can expect a major change in their salary structures if the government notifies the new wage code. The rules are likely to kick in from April 1.
The government is planning to increase the working hours to 12 hours from the current 9 hours. However, with the increase in working hours, the government is also likely to reduce the number of working days to four days a week.
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- Under the new definition of Wages, the allowances will be a maximum of 50 per cent of the total salary.
- A break of 30 minutes would be mandatory after every five hours of work.
- The central government claims that the new law will benefit both employers and workers.
- According to the new rules, now the basic salary should be 50 per cent or more of the total salary. In this case, the structure of the salary of the employees will change.
- Over five hours of continuous work is prohibited.
- Over 15 minutes of work would qualify as overtime. Currently, less than 30 minutes of work after the working hours is not considered overtime.
- Increase in the gratuity of employees and contribution to PF will increase the amount received after retirement.
Parliament had passed four codes on four broad codes on wages, industrial relations, social security and occupational safety health & working conditions (OSH) which would ultimately rationalise 44 central labour laws.
If These laws will be implemented from April 1, 2021. Then, the take-home salary of the employees will be reduced. Also, its effect will be on all the employees and the employer. The balance sheet of private companies will also be affected by this new rule. KN..