India prepares to set wage structure for WFH workers
A draft framework will be proposed to the Ministry of Finance, any subsequent changes requiring an amendment to the tax laws.
The Indian government is said to be in talks with companies on setting up a wage structure for workers who work from home.
The Department of Labor is in discussions with industry representatives on a legal framework that will suit the new work model, an official told BloombergQuint.
Some of the suggestions ranged from a reduction in rent allowance to new reimbursements like electricity and Wi-Fi. However, the percentage reduction in housing allowance has not yet been finalized, said the manager.
The draft framework will then be proposed to the Ministry of Finance, with any subsequent changes requiring a change in tax laws.
“Union Minister Bhupender Yadav chaired the meeting during which discussions on a range of issues including improving the employability and future skills of the workforce, increasing the productivity and a new work from home policy were discussed,” Rajeet Goswami, an industry representative who was part of the virtual meeting told the publication.
“Business leaders were in unison with the central government’s plans,” Goswami added.
READ: India likely to continue telecommuting policy until 2022
In January 2021, the government formalized working from home for the service sector, allowing employers and workers to mutually decide on a mode of work best suited to their situation.