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New Labor Act to be implemented in the country from 2022-23 financial year !; Changes in working days and salaries
New Delhi: The new Labor Act is likely to come into force in the country from 2022-23. The new labor law will have four days off work and three days off per week. But employees will have to work 12 hours a day. Because the limit of 48 hours work per week has been kept the same. Informing PTI, a senior government official said that the new labor law will come into force in India in the next financial year. The new law will change the system of employment and functioning. It will all depend on the salary of the employees, working hours and number of days of the week.
Many things will be affected if the new labor law is implemented. Take home pay will be reduced. So companies will have to increase their provident funds. According to experts evaluating the proposed labor law, the law will lead to a major shift in the calculation of basic pay and provident fund (PF). The contribution to the employee's PF account will increase every month as per the new rules. But the monthly salary will go down. The law stipulates that the share of basic salary in the total salary of an employee should not be less than 50%. At present most of the companies keep the share of basic salary in the total salary low and keep the allowances high. This puts less burden on the company. But that can no longer be done.
The contribution to the provident fund will depend on the basic salary, the percentage of dearness allowance. If an employee's salary is Rs. 50,000 per month, his basic salary will be Rs. 25,000 and the remaining 25,000 will go to other allowances. However, if the basic salary increases, more PF will be deducted, thus reducing the hand salary and increasing the contribution of the company.
The central government has already finalized the draft law. Now the states need to draft in their favor. Because labor is a contemporary subject. In this regard, 13 states have drafted rules. This was stated by Union Labor Minister Bhupendra Yadav in his reply to the Rajya Sabha.
Employees of many companies are currently working from home in view of the Corona crisis. IT companies have been alarmed by the new Omicron variant. The new law will reduce the stress on offices and public transport services. Also, with three vacations, the tourism system will get a boost. Also, increasing working hours per day will increase productivity.
New Delhi: The new Labor Act is likely to come into force in the country from 2022-23. The new labor law will have four days off work and three days off per week. But employees will have to work 12 hours a day. Because the limit of 48 hours work per week has been kept the same. Informing PTI, a senior government official said that the new labor law will come into force in India in the next financial year. The new law will change the system of employment and functioning. It will all depend on the salary of the employees, working hours and number of days of the week.
Many things will be affected if the new labor law is implemented. Take home pay will be reduced. So companies will have to increase their provident funds. According to experts evaluating the proposed labor law, the law will lead to a major shift in the calculation of basic pay and provident fund (PF). The contribution to the employee's PF account will increase every month as per the new rules. But the monthly salary will go down. The law stipulates that the share of basic salary in the total salary of an employee should not be less than 50%. At present most of the companies keep the share of basic salary in the total salary low and keep the allowances high. This puts less burden on the company. But that can no longer be done.
The contribution to the provident fund will depend on the basic salary, the percentage of dearness allowance. If an employee's salary is Rs. 50,000 per month, his basic salary will be Rs. 25,000 and the remaining 25,000 will go to other allowances. However, if the basic salary increases, more PF will be deducted, thus reducing the hand salary and increasing the contribution of the company.
The central government has already finalized the draft law. Now the states need to draft in their favor. Because labor is a contemporary subject. In this regard, 13 states have drafted rules. This was stated by Union Labor Minister Bhupendra Yadav in his reply to the Rajya Sabha.
Employees of many companies are currently working from home in view of the Corona crisis. IT companies have been alarmed by the new Omicron variant. The new law will reduce the stress on offices and public transport services. Also, with three vacations, the tourism system will get a boost. Also, increasing working hours per day will increase productivity.
Many things will be affected if the new labor law is implemented. Take home pay will be reduced. So companies will have to increase their provident funds. According to experts evaluating the proposed labor law, the law will lead to a major shift in the calculation of basic pay and provident fund (PF). The contribution to the employee's PF account will increase every month as per the new rules. But the monthly salary will go down. The law stipulates that the share of basic salary in the total salary of an employee should not be less than 50%. At present most of the companies keep the share of basic salary in the total salary low and keep the allowances high. This puts less burden on the company. But that can no longer be done.
The contribution to the provident fund will depend on the basic salary, the percentage of dearness allowance. If an employee's salary is Rs. 50,000 per month, his basic salary will be Rs. 25,000 and the remaining 25,000 will go to other allowances. However, if the basic salary increases, more PF will be deducted, thus reducing the hand salary and increasing the contribution of the company.
The central government has already finalized the draft law. Now the states need to draft in their favor. Because labor is a contemporary subject. In this regard, 13 states have drafted rules. This was stated by Union Labor Minister Bhupendra Yadav in his reply to the Rajya Sabha.
Employees of many companies are currently working from home in view of the Corona crisis. IT companies have been alarmed by the new Omicron variant. The new law will reduce the stress on offices and public transport services. Also, with three vacations, the tourism system will get a boost. Also, increasing working hours per day will increase productivity.
