The four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions are likely to be implemented by the next financial year. Under these new labours codes four day’s work in week from next year for all employee.
A number of aspects related to employment and work culture, in general, might change including the take-home salary of employees, working hours, and the number of weekdays. The labour codes were to be implemented from April 2021 this year, however, as labour is a concurrent subject, both the Centre and states have to notify rules under these four codes to make them the laws of the land.
Many states are in the process of finalising draft rules in this regard. “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,” media reported. “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.” If the new labour codes are implemented, it is likely that employees in India may be able to enjoy a four-day workweek from next year, as opposed to the current five-day workweek. It will also drastically alter the way industrial houses treat their employees and also impact the working hours, take home salary and other rights of employees.
For instance, once the wages code comes into force, there will be significant changes in the way basic pay and provident fund of employees are calculated. An important change that will be introduced in the wake of the 4-day workweek, would be a reduction in the take-home pay of employees. According to reports, employees and firms will have to bear a higher provident fund liability, hence there will be more money in PFs and less in-hand salary.
For this, major changes will be introduced in the way an employee’s basic pay and PF are calculated. Half of the salary would be basic wages and allowances would be restricted to 50 per cent, as per reports. Contribution to provident fund is calculated as a percentage of basic wage that involves the basic pay and dearness allowance (DA).
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The new labour codes may usher in a four-day workweek, as opposed to the current five-day workweek from 2022-23. With this, an employee will be able to enjoy a 3-day holiday/week, however, they will have to work for 12 hours on those four days to keep the weekly work hours in check. The Labour Ministry has asserted that even if the proposal comes through, the 48-hour weekly work requirement has to be met.
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