Increase in working hours to 12 hrs new labor law from October? Implement a pay rise!

Will the Narendra Modi government implement the new Labor Code from October? That means yes the news is coming. The center appears to be planning to implement four new labor laws from October 1. The center plans to increase the working hours of employees from 9 a.m. to 12 p.m., according to the new labor law. Working hours may increase after the implementation of the new labor law. However, along with these working hours, the wages of the employees are also likely to increase. However, it is likely that some amendments will be made to the new labor laws with effect from October 1.

According to the draft labor law the basic salary of an employee should be 50 per cent or more. Employee allowances are also likely to increase. Overtime rules are also likely to change. Under the new labor law, overtime of more than fifteen minutes is counted as overtime. Companies then have to pay overtime pay. Exceeding 15 minutes is considered 30 minutes overtime. The Union Ministry of Labor is currently in consultation with the concerned parties on the new laws preparing for changes and additions. The consultation is expected to be completed and implemented by October.

The basic wage increase also depends on the PF. If the basic increases then the amount credited to the PF will also increase. Then there will be a cut in take home pay. According to experts, as the amount of gratuity credited to PF increases, so does the amount that the employee receives after retirement. An increase in PF and gratuity means that the cost of companies is also increasing. As the basic salary of employees increases, so does the amount credited to the PF, as well as the employer contribution. This is because the employer must contribute to the PF equal to the employee share. That means the employer PF contribution will increase.

News has been coming in since the beginning of this year that the Center has drafted a new Labor Code, basically a number of elements in the new Labor Code. The first draft includes items such as a free medical checkup and 4 working days a week. The Ministry of Labor said the process of finalizing the provisions of the four Labor Codes would be completed soon. These were recently approved by Parliament. Former Labor and Employment Secretary Apoorva Chandra said that with the proposed Labor Codes, working hours would remain at 48 hours, despite companies having four working days a week. Simultaneous consultations were held with the states regarding the Labor Codes.

According to the new Labor Code draft, working days can be less than five days. It should be given four but three paid holidays. So it should be divided into 4 or 5 or 6 working days in a seven day week ‘said Chandra Nadu. However, the 48-hour weekly work limit will remain the same. In addition to working twelve hours a day, the unions are also considering bringing the issue of paid leave to the attention of the government. Companies typically have a maximum of 48 hours of work per week. It has already been reported that working 8 hours a day can be six working days a week, while some companies offer 12 hours a day working four hours a week and the remaining three days being holidays.

Impact of the new pay code on gratuity Some employees will have their salaries revised after the implementation of the new pay code. Companies must pay at least 50 percent of the salary as a basic salary. If the basic salary is low then the basic pay will have to be amended in accordance with the Industrial Relations Code, Occupational Safety, Health and Working Conditions Code, Social Security Code, Code on Wages. Gratuity will also increase along with PF in the wake of the increase in basic pay.

The increase in wages in the wake of the salary restructuring will lead to an increase in the gratuity pay of employees, however the same is true under the Code of Social Security 2020 to calculate gratuity. Even if you lose your job or retire, you have to apply for gratuity within a month. If the company does not pay the gratuity, the lesser amount can be complained to the Assistant Labor Commissioner.

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