How India’s work culture could change next year
Four-day work week: In India, the four-day working week could soon become a reality. The central government is likely to implement the four new labor codes on wages, social security, industrial relations and safety, health and working conditions, according to a report. This will be done by the fiscal year beginning in 2022, the report suggested quoting a senior government official. Under the new rules, employees across India are likely to have three days off a week and work four days, among other things. The Center has already finalized rules under these codes, and states are now required to develop regulations on their part, as labor is a competing subject, the report said.
If the new rules are to be implemented, the general work culture will change in the country. In addition to the number of weekdays, an employee’s take-home pay and working hours are subject to change. Unlike the current five-day work week, employees could enjoy a four-day work week with three days off starting next fiscal year, according to the report by news agency PTI.
“All four labor codes are expected to be implemented in the upcoming 2022-23 fiscal year as a large number of states have finalized draft rules on them. The Center completed the process of finalizing draft rules on these codes in February 2021. But since the work is a competing topic, the Center wants states to also implement them all at once,” the senior official said. of the government, according to PTI. .
Union Labor Minister Bhupender Yadav in a response to the Rajya Sabha last week said that the Occupational Safety, Health and Working Conditions Code was the only code on which the least of 13 states had pre-published the draft rules.
The report adds that no less than 13 states have prepublished draft rules on the Occupational Safety, Health and Working Conditions Code. These are Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, of Himachal Pradesh and UT of Jammu and Kashmir.
According to a Hindustan Times report citing experts who assess new labor codes, take-home pay for employees will also decline. Indeed, these laws will modify the method of calculating the contingency fund. This would prescribe that allowances cannot exceed 50% of total salary, meaning that base salary must be 50% or more of total salary. Normally, employers keep the share of salary excluding allowances below 50%, which results in high pay in hand for employees. However, once the changes are introduced, employers are required to increase the base salary of employees. This will result in a reduction in net salaries due to increased gratuities and employee contribution to the provident fund.
The central government has notified four labor codes, namely the Wage Code, 2019, on August 8, 2019, and the Industrial Relations Code, 2020, the Social Security Code, 2020 and the Safety, Health and Safety Code. health and working conditions. , 2020 on September 29, 2020. However, the Center as well as the states are required to notify the rules under the four codes to enforce these laws in the respective jurisdictions. Under the codes, the power to make rules has been vested in the central government, the state government and the appropriate government and it is mandatory to publish the rules in their Official Gazette for a period of 30 or 45 days for public consultation.
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