Update | New office working hours 2022 | Latest Breaking News | PF GPF ? Take Home Salary, Work Hours: What Will Change Under Indian Govt's New Labour Laws?

Update | New office working hours 2022 | Latest Breaking News | PF GPF ? Take Home Salary, Work Hours: What Will Change Under Govt's New Labour Laws?

These new laws will allow companies to change the office working hours, but they have to compensate employees by giving an additional weekly off.

There will likely be a significant change in office working hours, an employee's provident fund (EPF) contributions and in-hand salary from July 1. Office hours and PF contributions are likely to increase, while in-hand salary will likely decrease. The government is working to implement a set of four new labour codes as soon as possible.

 However, as some states have not yet framed the rules, this change is expected to effect from July 1, reported MoneyControl. The government says the new labour laws will boost investments in the country and increase employment opportunities. These new laws will allow companies to change the office working hours significantly. They can increase the office working hours from 8-9 hours to 12 hours. But they will have to compensate their employees by giving them three weekly offs. The idea is not to alter the total working hours in a week. 

Another significant change is likely to be in the take-home salary component and employers' contribution to the provident fund. The new codes may peg the employee's basic salary at 50 per cent of the gross salary. You Can Partially Or Fully Withdraw Provident Fund Money Under These Conditions Before Retirement You Can Partially Or Fully Withdraw Provident Fund Money Under These Conditions Before Retirement Income Tax Refund: How To Know The Refund Status On The New Income Tax Portal Income Tax Refund: How To Know The Refund Status On The New Income Tax Portal EPFO Issues New Guidelines: Check How PF Contributions Above Rs 2.50 Lakh Will Be Taxed EPFO Issues New Guidelines: Check How PF Contributions Above ₹ 2.50 Lakh Will Be Taxed While this helps an employee, it will increase the PF contributions of the employee and the employer. 

The take-home salary will decrease for some employees, especially those in the private sector. The money received after retirement and the gratuity amount will also increase. This will enable employees to lead a better life after retirement. So far, 23 states have reportedly framed labour code rules. The other seven have not yet. An essential part of the Constitution, 29 central labour laws in India have been divided into four codes: wages, social security, industrial relations, occupational safety and health and working conditions. 1 Comments The parliament has passed these codes. But labour is a concurrent list subject, so the Centre wants the states to implement these rules in one go.

The Union ministry of labour and employment may implement the new labour codes July 1 this year, according to a report. The central government has been working on designing the four new labour codes, under which there will be significant changes in terms of an employee’s salary, his or her PF contributions and work hours. 

As per reports, the central government under Prime Minister Narendra Modi is trying to implement the labour codes as soon as possible. However, it will need at least three months to come into effect as all states have not prepared the rules yet. The central government is likely to implement the four new labour codes on wages, social security, industrial relations and occupation safety, health and working conditions, within three months from now. 

What is Going to Change? Under the new labour laws, one major thing that is likely to be implemented is the change in workdays. Once the new rule comes into effect, companies will be able to make employees work for four days instead of five, and there will be three week offs. However, there is a catch to it. Employees will need to work for 12 hours a day instead of eight, since work hours will not get reduced. PF and Allowance in Salary to Increase under New Labour Code? What We Know So Far Govt Defers New Wage Codes Implementation; Employees' Take Home Pay, PF, Salary Structure Remain Same For Now Another major change that this is going to bring in is that the ratio of the take home salary and the employees and employer’s contribution in provident fund. As per the provision of the new codes, the basic salary of the employee will have to be 50 per cent of the gross salary. While this will mean that PF contributions of the employee and employer will increase, the take home salary will decrease for some employees, especially those working in private firms. The money received after retirement as well as the gratuity amount will also increase under the provisions of the new draft rules. “The four labour codes are likely to be implemented in the next financial year of 2022-23 as a large number of states have finalised draft rules on these.

 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," PTI had quoted a senior government official as saying last year. The central government has notified four labour codes, namely, the Code on Wages, 2019, on August 8, 2019, and the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 on September 29, 2020. As many as 13 states have already  pre-published draft rules on The Occupational Safety, Health and Working Conditions Code. These are Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and UT of Jammu and Kashmir.