Employee working hours, salary structure subject to change from April 1; find out how the new wage code will affect you
New Delhi | Jagran Business Office: The new fiscal year is going to start from April 1st and with the start of the new fiscal year, several changes will also take place. Most important among the changes will be the modification of the working hours of the employees and their salary structure. The government plans to increase working hours to 12 p.m. from the current 9 a.m. However, with the increase in working hours, the government is also likely to reduce the number of working days to four days a week.
The changes, which are expected to come into effect from April 1, are also expected to include changing the salary structure of employees with an increase in gratuity and provident fund and a decrease in take-home pay.
This comes as the government passed three wage code bills in parliament in 2020. These three laws can now be implemented from April 1, 2021. If this happens, the net salary of employees will be reduced. Moreover, its effect will be felt on all employees and the employer. The balance sheet of private companies will also be impacted by this new rule.
These changes will occur with the new wage code
– According to the new definition of salaries, allowances will amount to a maximum of 50 per cent of the total salary.
– The central government says the new law will benefit both employers and workers.
– According to the new rules, the basic salary must now represent 50% or more of the total salary. In this case, the salary structure of employees will change.
– As the provident fund is based on the base salary, the PF will increase with the increase in the base salary, which means that there will be a decrease in the net salary or the salary in hand.
– The increase in the bonus for employees and the contribution to the PF will increase the amount received after retirement.
– The new bill proposes to work for a maximum of 12 hours.
– According to the rules, more than 5 hours of continuous work is prohibited for any employee.
– Employees were instructed to rest 30 minutes every 5 hours.