Wage Code 2022: Take Home Salary To Decrease, PF-Gratuity & Holidays To Increase: Details Inside

New Delhi: As the current month comes to an end, the discussion over the new Wage Code has started gaining momentum. People including the media are speculating that the Modi government may implement four labour codes on wages, social security, industrial relations, and occupation safety, health, and working conditions from July 1.

Now, if the same is implemented, then in that case what will change and what will not? Let's find the answers below.

-- If the said code is implemented then there will be many changes such as retirement benefits like PF and gratuity will increase. Apart from this, the weekly holidays can also increase from two days to three days.

-- Notably, it is also expected that the full and final settlement of the payment of any employee should be completed within two days of dismissal from the job. At present, it takes 30 to 60 days (average of 45 days) for full and final payment. However, this does not include resignation.

-- In the new labor code, In-Hand Salary i.e. Take Home Salary will be reduced and working hours will increase.

-- The new rules will also increase the eligibility requirement for leaves from 240 days of work to 180 days of work in one year which means an employee has to work for 240 days after joining a new job to be eligible for getting a leave.

-- Significantly, the new industrial relation code also allows the companies with up to 300 workers for lay-offs, retrenchment, and closure with government permission.

-- In addition to these, if the new labour code is implemented, then employees will have to work for 12 hours, as the government has proposed that an employee will have to work at least 48 hours a week.

The central government had prepared the final draft of these four codes in February 2021 itself and so far 23 states have adopted pre-published drafts of these laws.

Moreover, the contribution of the employee in PF will increase because half of the basic salary will be deducted as PF which will eventually reduce the take-home salary. However, at the time of retirement, the employee will get a large amount.

Also read: Hackers steal $100 million in crypto from Harmony Blockchain bridge

Also watch: