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4-Day Work Week, Less Salary, More PF: What India’s New Labour Codes May Bring In 2022

According to the latest PTI report, the 4 labour codes on social security, wages, occupation safety, industrial relations, health and working conditions will be implemented by the next financial year. A senior government official cited this information to PTI. Under these new codes, there might be a few changes in the take-home salary of employees, working hours and number of weekdays.

The labour codes were supposed to be implemented from April 2021 but as it is a concurrent subject, both the Centre and states have to notify rules under these 4 codes and then make the laws. Many states are in the final stage to draft the rules.

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“The Centre has completed the process of finalising the draft rules on these codes in February 2021. But since labour is a concurrent subject, the Centre wants the states to implement these as well in one go.”

If the new labour codes are implemented then the employees may enjoy a 4-day workweek from next year instead of a 5-day workweek. However, it will drastically affect the working hours if we take a look at industries treating their employees. It may also affect the take-home salary and other rights of employees.

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Less in-hand salary, more money in PF

In this new 4 day workweek, employees will see a reduction in their take-home salary and higher provident fund liability. According to reports, the employees will get more money in PF and less in-hand salary. So, employees will see a major change in the way their salary is calculated. Half of it would be basic wages and allowances, as per reports.

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4-day workweek

Under this new system, employees can enjoy 3 days holiday but they will have to work 12 hours a day to complete the 48 hours/week requirement, said the Labour Ministry.

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13 states have pre-published draft rules

Around 13 states have pre-published draft rules on these laws, the senior government official said. Union labour minister Bhupender Yadav too stated in Rajya Sabha that Occupational Safety, Health and Working Conditions Code is the only code that is pre-published the draft rules in at least 13 states.

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