Srinagar: There’s some good news for employees who have to work overtime because of excessive work or crucial deadlines on a daily basis and get nothing as their reward. As per reports, a new labour law could be implemented under the New-Wage Code that can cause a change in your salary structure, especially your take-home salary.
Currently, the government is making changes to the wage code regarding things like working hours, overtime, break time.
What is New Wage Code?
The government had prepared four wage codes by combining 29 labour laws – Code on Wedges, Industrial Relations Code, Occupational Safety and Health (OSH) and Social Security Code.
In 2019 August, changes were made to three of the labour codes – industrial relations, safety of work, health and working conditions and social security.
As per the Wage Code Act, 2019, the basic salary of an employee cannot be less than 50 per cent of the cost of the company (CTC). At present, many companies reduce the basic salary and give more allowances from above so that the burden on the company is reduced.
As per the new implementation of the New-Wage Code, there will likely be a provision where if an employee works extra between 15 – 30 minutes in overtime by counting 30 minutes will get extra pay. Under the current rule, less than 30 minutes is not considered eligible for overtime.
Once the Wage Code Act, 2019, is implemented, the salary structure of employees will change completely. The ‘Take Home Salary’ will decrease since the Basic Pay and the PF of employees will increase. Along with the PF, their contribution to the gratuity will also increase.
The new wage code is also applicable for unorganized sector employees. The rules related to salary and bonus will change and there will be equality in the salary of employees working in every industry and sector.
According to EPFO board member and Bharatiya Mazdoor Sangh and General Secretary Virjesh Upadhyay, there is a change in the rules on important issues like working hours, annual holidays, pension, PF, take-home salary, the retirement of employees.
Earlier, the new wage code was supposed to be implemented from April 1, 2021, it was postponed to July 2021. However, it might get implemented in April 2022. (DNA)
