Centre govt implementing new labour rules: increase duty hour and pay structure from October 1

Prime Minister Narendra Modi-led government at the Centre is expected to implement some changes in the labour laws of the country from October 1. According to reports, the new rule will increase the work time of employees from 9 to 12 hours and salary will also see a change after the new rule is implemented.

As per the new draft of the Labour Law, the basic pay of an employee is to increase by 50 per cent of the total salary while the non-perks side of the salary will be less than 50 per cent of the total salary.

Similarly, other changes will take place in an employees’ CTC accordingly. The good news is that the Provident Fund (PF) of an employee will increase due to the increase in the basic salary though it will lead to less pay in hand it will be better for the future.

The gratuity amount of an employee will also increase. The OSH Code considers extra work provided between 15 and 30 minutes to be counted as overtime for 30 minutes. The current rule states that less than 30 minutes are not considered eligible overtime.

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The draft also prohibits employees to work continuously for five hours without a break and include instructions to give employees a break of half-an-hour after every five hours.

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