New Labour Codes: 12 Hours of Work, Changes in PF and Retirement Clauses, To be Implemented From October 1

The BJP ruled Labour Ministry claims that the new law is being made keeping in mind the workers. However, trade unions and the workers themselves have been opposing it from the beginning.

codes
Image: Business Standard

An extremely pertinent development is on its way for employed people of the country. The change will massively modify everything in the lives of the working classes starting from their working hours to their salary. All this is as a result of the new wage code which will be implemented across the country from October 1.

Originally the code was to be launched on April 1, but it got delayed. Now, the new rules are going to come into effect from October. It is expected that the new labour codes will increase the working hours from 8 hours to 9-12 hours. In addition, it is known that there will be a change in the salary structure of the employees.

Salary or take-home salary is likely to be slightly less once the codes are enacted. Not only this, work time, overtime or overtime work, break time will also witness changes.

However, as October 1 nears, various groups have started to pick up the issue and meetings are being held regarding the entire matter. The BJP ruled Labour Ministry claims that the new law is being made keeping in mind the workers. However, trade unions and the workers themselves have been opposing it from the beginning.

According to the Wage Code, 2019, the basic salary of an employee should not be less than 50 percent of the total amount paid by the CTC or the company. Many companies still show very low basic pay and high perks which takes the pressure off the company. But this time the Labour Ministry is going to make some changes in the rules.

According to the new law in the draft, from now on if someone works extra for 15 to 30 minutes, then that time will be considered as half an hour and companies will have to pay overtime.

Under the current rules, overtime payment was not required for less than 30 minutes. But the new law calls for overtime in that case. Not only this, no company can get an employee to work for more than five hours continuously. After working for five hours, he has to take a break of 30 minutes.

It is also being speculated that there will also be a change in the salary structure. Even if the amount of wages paid to the workers is small. Because after the increase in the basic salary, there will be a further cut in the PF of the employees.

Apart from PF, the amount will also increase in the case of gratuity. As a result, the amount of salary received by an employee is expected to be somewhat less.

However, after the retirement of the employees, a large amount will be available. New rules are also being implemented for the employees of the unorganized sector. There will be many changes in the rules related to salary and bonus.

Also read: Labour Unions Burnt Copies of New Labour Codes to Mark Their Protest at Jantar Mantar

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