According to the media report, the four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions are likely to be implemented from July 1, 2022.
The long-awaited introduction of four labour codes, originally scheduled to happen at the beginning of the current fiscal year. The new wage code will impact working hours, 4-day week salary restructuring and PF contribution, encashing of Earned Leaves after implementation.
Central Government has already notified four labour codes and is trying to implement them shortly. However, it will need at least three months to come into effect as all states have not prepared the rules yet.
The central government has worked on designing the four new labour codes. These significant changes will be effective changes to the employee’s salary, their PF contributions and work hours etc.
This will encourage investment in the country. Also, the employment opportunities will increase. Till now, 13 states have prepared drafts for labour code rules. These states include Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and UT of Jammu and Kashmir.
Changes in new labour laws come into effect from July 1, 2022:
Working hours: If this is implemented by the Centre government’s new labour laws from July 1, the offical working hours may increase to 12 hours with a 4-Day Week.
The report suggests that Centre is planning to implement the new rules as soon as possible. The companies may have to give employees work for four days instead of five, and there will be three weeks offs.
Take-Home Salary and PF contribution: As per the new labour laws, the basic salary will be 50% or more of the total salary.
The direct impact on the salary structure of most of the employees. The PF and gratuity money will be deducted more than before.
The increase in the PF contribution will directly affect the take-home salary as it will decrease but it will increase retirement contribution.