According to various reports, the Central government is planning to implement new labour laws from July 1 this year. The Centre is working on designing 4 new labour codes in which there will be drastic changes in employee’s salaries, PF contributions and working hours.
According to media reports, PM Modi is trying to implement the new labour codes as soon as possible. However, it will take months to come into effect in all states of India as only some states have prepared the drafts.
Talking to news agency PTI, a government official said that the 4 labour codes were going to be implemented this financial year (2022-23) as a majority of states have drafted the rules. They also added that the Centre has completed the process of finalising the draft rules on these codes in February 2021.
The states that have already drafted labour code rules are Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and UT of Jammu and Kashmir.
The 4 labour code rules will encourage investment in the country and hence it will increase job opportunities. Here is a list of 4 labour codes that will be modified:
Longer Working Hours, Longer Weekends: The office working hours may increase from 8-9 hours to 12 hours and the employees will get 3 days off instead of 2 days. The Centre is planning to implement the rules as soon as possible.
In-Hand Salary and PF Contribution: According to the new labour laws, the basic salary will be 50% or more of the total salary. With an increase in basic salary, the PF and gratuity money will be deducted more than before. With a higher PF contribution, the In-hand salary will decrease.
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