Labor Code Rules: The Modi government wants to implement labor law reforms from this year itself. Despite the delay in implementing labor reforms, the Union Ministry of Labor and Employment is looking to implement four labor codes in 2022. If this happens, government employees can get 12-hour jobs. They have to work for 12 hours. The salary in hand may be less but the corpus on retirement may increase.
Government’s intention to implement soon
Union Minister of State for Labor and Employment Rameshwar Teli told Moneycontrol.com that the ministry is trying to take every state along before implementing the labor code. Rameshwar Teli said that we are constantly talking to all the states. Mostly everyone is on board and they are making new draft rules. Some states are considering this with us. He said that whenever any big scheme or program comes, he will take everyone along. He said that it is difficult to give any deadline, but it is expected that all the four labor codes will be implemented by the year 2022.
Law is divided into 4 codes
29 Central Labor Laws in India are divided into 4 codes. The rules of the code include 4 labor codes like wages, social security, industrial relations and occupation safety and health and working conditions etc. So far 13 states have prepared these draft laws. These four codes have been passed by the Parliament, but apart from the center, the state governments are also required to notify these codes, rules. Only after that these rules will be applicable in the states. These rules were to come into force from April 1, 2021 last year, but were postponed due to non-completion of the preparations of the states.
Salary will decrease and PF will increase
According to the new draft rule, the basic salary should be 50% or more of the total salary. This will change the salary structure of most of the employees, due to increase in basic salary, PF and gratuity money will be deducted more than before. PF is based on basic salary. With the increase in PF, the take-home or salary in hand will decrease.
Money received on retirement will increase
With the increase in gratuity and PF contribution, the money received after retirement will increase. The amount will increase. This will make it easier for the employees to lead a better life after retirement. With the increase in PF and gratuity, the cost of companies will also increase as they will also have to contribute more to the PF for the employees. This will have a direct impact on their balance sheet.
New rules will be implemented soon
Under the new definition of wages, allowances will be maximum 50 percent of the total salary. Significantly, for the first time in the country’s 73-year history, such changes are being made in labor laws. The government claims that it will prove beneficial for both the employer and the worker.
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