[India] Employees can take 3 days off in a week under new labour codes

In positive news for India’s workforce, under new labour codes workers are now entitled to relief in working hours as well as days, Krishi Jagran reports.

There are four new labour codes affecting wages, Social Security, Industrial Relations and Occupation Safety and Health and Working Conditions. These are expected to be implemented by the next fiscal year 2022-2023 (FY23). One senior official providing information on the codes said that at least thirteen states have prepared draft rules.  

Next steps

The Center has finalised rules for these codes and now states will have to determine their own rules. Officials announced that the four labour codes are likely to be implemented in the next financial year.

“Four labour codes are likely to be implemented in the next financial year 2022-23 as large numbers of the states have finalised the draft rules. Center had completed the process of finalising draft rules of these codes in February 2021, but, since the labour is a concurrent subject, Center wants the states to implement this simultaneously.”

States prepared draft rules

Union Labor Minister, Bhupendra Yadav told Rajya Sabha that at least thirteen states have prepared the draft rules of the Labor Code on occupational safety, health and working conditions. In addition, 24 states and Union Territories have prepared draft rules of the Labor Code on wages and twenty states have prepared the draft rules of the Industrial Relations Code. 18 states prepared draft rules of the Society Security Code.  

Three days off in a Week

The new draft law contains a proposal to increase the maximum daily working hours to twelve. However, working hours will be reduced to only 48 hours a week. If a person works for 8 hours a day then they will have a six-day working week, whereas, if a person works for 12 hours a day, then they will have to work 4 days a week. Essentially, after the implementation of the law employees can get three days' leave instead of the usual 1-2 days by increasing their daily working hours.

Take-home wages will decrease under new labour law

After the implementation of the new labour law, the take-home pay of employees will decrease and companies will have to bear the burden of higher PF liability. As per the draft rules, the basic salary should account for 50 per cent or more of the total salary. 

This will change the pay structure of many employees. The increase in basic salary means the amount deducted for PF and gratuity will increase. The money paid into it is fixed in proportion to basic salary, meaning take-home salary could potentially decrease. However, the amount of PF and gratuity money received on retirement will increase.  

Source: Krishi Jagran

(Quote via original reporting)

In positive news for India’s workforce, under new labour codes workers are now entitled to relief in working hours as well as days, Krishi Jagran reports.

There are four new labour codes affecting wages, Social Security, Industrial Relations and Occupation Safety and Health and Working Conditions. These are expected to be implemented by the next fiscal year 2022-2023 (FY23). One senior official providing information on the codes said that at least thirteen states have prepared draft rules.  

Next steps

The Center has finalised rules for these codes and now states will have to determine their own rules. Officials announced that the four labour codes are likely to be implemented in the next financial year.

“Four labour codes are likely to be implemented in the next financial year 2022-23 as large numbers of the states have finalised the draft rules. Center had completed the process of finalising draft rules of these codes in February 2021, but, since the labour is a concurrent subject, Center wants the states to implement this simultaneously.”

States prepared draft rules

Union Labor Minister, Bhupendra Yadav told Rajya Sabha that at least thirteen states have prepared the draft rules of the Labor Code on occupational safety, health and working conditions. In addition, 24 states and Union Territories have prepared draft rules of the Labor Code on wages and twenty states have prepared the draft rules of the Industrial Relations Code. 18 states prepared draft rules of the Society Security Code.  

Three days off in a Week

The new draft law contains a proposal to increase the maximum daily working hours to twelve. However, working hours will be reduced to only 48 hours a week. If a person works for 8 hours a day then they will have a six-day working week, whereas, if a person works for 12 hours a day, then they will have to work 4 days a week. Essentially, after the implementation of the law employees can get three days' leave instead of the usual 1-2 days by increasing their daily working hours.

Take-home wages will decrease under new labour law

After the implementation of the new labour law, the take-home pay of employees will decrease and companies will have to bear the burden of higher PF liability. As per the draft rules, the basic salary should account for 50 per cent or more of the total salary. 

This will change the pay structure of many employees. The increase in basic salary means the amount deducted for PF and gratuity will increase. The money paid into it is fixed in proportion to basic salary, meaning take-home salary could potentially decrease. However, the amount of PF and gratuity money received on retirement will increase.  

Source: Krishi Jagran

(Quote via original reporting)