NEW DELHI: As part of its welfare measures, the Central government’s new labour laws are going to be implemented from July 1, 2022.
The new labour laws will have implications on wages, social security (pension, gratuity), labour welfare, health, safety and working conditions (including that of women).
Reports suggest, so far 23 states including Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and UT of Jammu and Kashmir have framed rules under new labour laws.
As per the new labour laws, the daily working hours have been capped at 12 hours while the weekly working hours have been fixed at 48 hours. This means that the companies/factories can make it a four-day-work week. Overtime has been increased from 50 hours to 125 hours in a quarter across industries.
The new labour laws suggest that the basic salary of an employee will have to be at least 50% of the gross salary. As an effect, the employees will be making more contributions to their EPF accounts and gratuity deductions will also increase which will decrease take-home salaries of most employees.
The quantum of leaves in a year will remain the same but employees will now earn a leave for every 20 days of work instead of 45, which is a good news. Moreover, the new employees will be eligible to earn leaves after 180 days of employment instead of 240 days of work as is applicable now.
Another big change that is going to come under new labour law is the ratio of the take home salary and the employees and employer’s contribution in Provident Fund. The basic salary of the employee will have to be 50% of the gross salary. The PF contributions of the employee and employer will increase, the take home salary will decrease, especially those working in private sectors.