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    Tanima Roy
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    The new labour codes were postponed and will reduce take-home pay for employees. They will increase PF contributions and extend the work day to 12 hours while reducing overtime pay. The codes aim to increase social security benefits but will likely decrease salaries to account for higher gratuity and pension costs. Implementation is now up to individual states.

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    NEW LABOUR CODES 2022

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    The new labour codes were postponed and will reduce take-home pay for employees. They will increase PF contributions and extend the work day to 12 hours while reducing overtime pay. The codes aim to increase social security benefits but will likely decrease salaries to account for higher gratuity and pension costs. Implementation is now up to individual states.

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    321 views2 pages

    New Labour Codes 2022

    Uploaded by

    Tanima Roy
    The new labour codes were postponed and will reduce take-home pay for employees. They will increase PF contributions and extend the work day to 12 hours while reducing overtime pay. The codes aim to increase social security benefits but will likely decrease salaries to account for higher gratuity and pension costs. Implementation is now up to individual states.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    SUMARRY ON NEW LABOUR CODES 2022

    The new labour laws which were to be implemented on 1st July 2022 for all the
    corporates and organizations under the registration of the ministry of corporate
    affairs have been postponed as of now due to multiple states not agreeing on the
    terms. The new labour law will shrink working hours, and PF as well as the in-
    hand salary of employees in the process.

    The latest labour laws would be reducing the take-home salary of the employees
    by increasing the HRA as well as the PF categories of the salary structure. Apart
    from that, new labour laws 2022 will also extend working hours to 12 hours a
    day as per the reports.

    One of the biggest impacts of the new labour law will be on the take-home
    salaries, which is expected to reduce, owing to the fact that the government is
    eyeing increasing contributions towards provident fund (PF) and other post-
    retirement schemes. The new laws are expected to come into play soon, which
    will force employers to modify their employee compensations.

    The Centre has finalised the four codes related to wages, social security,
    industrial relations and occupational safety. Now it is up to the states to
    implement them.

    1. The new wages code makes it compulsory for organisations to make sure
    that 50 per cent of employees’ CTC is basic pay, while the remaining 50
    per cent comprises other employee allowances, including house rent,
    overtime, etc. If the company pays any additional exemptions or
    allowances that exceed 50 per cent of the CTC, the same will be treated
    as remuneration to be added to the wages.

    2. Under the new wages code, the gratuity amount will be calculated on a
    larger salary base, which will include basic pay plus allowances such as a
    special allowance on wages. This is expected to increase the gratuity
    cost of companies. While increasing the social security (pension)
    components of wages, the new laws are likely to decrease the take-home
    salary of employees.

    3. There is also a rule incoming for any 15 minutes or more overtime will be
    attracting overtime payment to the employees

    The government has also made it clear that 48 hours is the maximum
    limit for a one-week work capacity and the employers are flexible to
    choose this work time and make it available in 4 days, 5 days, or 6-day
    week structure.

    4. The employees will be permitted to take three week offs.

    5. The professionals who are leaving the country have to be sorted with the
    final settlement completed within a time limit of 2 days of leaving the
    company.

    6. Female employees will benefit from an increase in maternity leave to 26


    weeks. Companies have to take permission from the female workers for
    the night shift.
    7. Proper facilities and security need to be assured to the female forces in an
    organisation.
    8. After the execution of the codes, the labour forces will get leave every
    180 days instead of the 240 days that used to happen earlier. But in India,
    the full and final payment is credited after 45 days of exiting a company.

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