![[India] Labour law changes for working hours, salary and leaves](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Indian-Woman-Starting-New-Garm-453990413_1200x.jpg?v=1656069020)
In India, the Central Government's new labour laws are set to be implemented from July 1. With them will come significant changes across all industries and sectors and to the way people work, DNA reports.
From regulations related to the working hours of employees and the provident fund, to salary structures, all will reportedly undergo drastic changes.
The new labour laws will have implications on wages, social security (pension, gratuity), labour welfare, health, safety and working conditions (including those of women).
Reports suggest, that 23 states including Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and UT of Jammu and Kashmir have so far framed rules under new labour laws.
These states have framed state labour codes and rules based on the new Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020 and the Occupational Safety, Health and Working Conditions Code 2020, all of which have been passed by Parliament.
Working hours
The working hours for employees in all sectors will undergo a drastic change. Presently, the working hours are based on the Factories Act, 1948 at the national level for workers in factories and other such workplaces. While it is governed by the Shops and Establishment Acts of each state for office workers and other employees.
As per the new labour laws, the daily working hours have been capped at 12 hours while the weekly working hours have been fixed at 48 hours. This means that the companies/factories can make a four-day work week. Overtime has been increased from 50 hours to 125 hours in a quarter across industries.
Salary structure of employees
The new labour laws state that the basic salary of an employee will have to be at least 50 per cent of the gross salary. As an effect, the employees will be making more contributions to their EPF accounts and gratuity deductions will also increase which will decrease the take-home salaries of most employees.
Number of leaves
The quantum of leaves in a year will remain the same but employees will now earn a leave for every 20 days of work instead of 45, which is good news. Moreover, the new employees will be eligible to earn leaves after 180 days of employment instead of 240 days of work as is applicable now.
Another big change that is going to come under the new labour law is the take-home salary ratio and employees’ and employers' contributions to the Provident Fund. The basic salary of the employee will need to be 50 per cent of the gross salary. The PF contributions of the employee and employer will increase and take-home salary will decrease, especially for those working in the private sector.
Source: DNA
(Link via original reporting)
In India, the Central Government's new labour laws are set to be implemented from July 1. With them will come significant changes across all industries and sectors and to the way people work, DNA reports.
From regulations related to the working hours of employees and the provident fund, to salary structures, all will reportedly undergo drastic changes.
The new labour laws will have implications on wages, social security (pension, gratuity), labour welfare, health, safety and working conditions (including those of women).
Reports suggest, that 23 states including Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and UT of Jammu and Kashmir have so far framed rules under new labour laws.
These states have framed state labour codes and rules based on the new Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020 and the Occupational Safety, Health and Working Conditions Code 2020, all of which have been passed by Parliament.
Working hours
The working hours for employees in all sectors will undergo a drastic change. Presently, the working hours are based on the Factories Act, 1948 at the national level for workers in factories and other such workplaces. While it is governed by the Shops and Establishment Acts of each state for office workers and other employees.
As per the new labour laws, the daily working hours have been capped at 12 hours while the weekly working hours have been fixed at 48 hours. This means that the companies/factories can make a four-day work week. Overtime has been increased from 50 hours to 125 hours in a quarter across industries.
Salary structure of employees
The new labour laws state that the basic salary of an employee will have to be at least 50 per cent of the gross salary. As an effect, the employees will be making more contributions to their EPF accounts and gratuity deductions will also increase which will decrease the take-home salaries of most employees.
Number of leaves
The quantum of leaves in a year will remain the same but employees will now earn a leave for every 20 days of work instead of 45, which is good news. Moreover, the new employees will be eligible to earn leaves after 180 days of employment instead of 240 days of work as is applicable now.
Another big change that is going to come under the new labour law is the take-home salary ratio and employees’ and employers' contributions to the Provident Fund. The basic salary of the employee will need to be 50 per cent of the gross salary. The PF contributions of the employee and employer will increase and take-home salary will decrease, especially for those working in the private sector.
Source: DNA
(Link via original reporting)