Salary Structure, Working Hours, Leaves, PF, Of Employees To Be Changed Under New Laws; Know Details Here
The Central government is planning to establish new labour laws from July 1, 2022. If this gets implemented, then there will be a significant change in office working hours, employee’s provident fund (EPF) contributions and in-hand salary. While the office hours and PF contributions are likely to increase, the in-hand salary will likely decrease.
While reports indicate that the Centre is all set to implement these rules from next month, no official notification, however, has been issued yet. The reforms will tackle areas such as wages, social security (pension, gratuity), labour welfare, health, safety and working conditions (including that of women).
Here are these changes
Working Hours and Days Off
Under this new labour laws, one major thing that is likely to be implemented is the change in workdays. Once the new rule implemented, Employees will need to work for 12 hours a day instead of eight, since work hours will not get reduced. However, companies will be able to make employees work for four days instead of five, and there will be three week offs.
PF Contributions and Take Home Salary
Another major change is that the ratio of the home salary and the employees and employer’s contribution in provident fund. As per the provision of the new codes, the basic salary of the employee will have to be 50 per cent of the gross salary.
While this will mean that PF contributions of the employee and employer will increase, the take home salary will decrease for some employees, especially those working in private firms.
Leaves
Another change is the new labour codes have increased the eligibility requirement for leaves from 240 days of work to 180 days of work in one year. This means that in order to be eligible for getting a leave, an employee has to work for 240 days after joining a new job.
(With inputs from Agencies)