New Delhi: Those working in corporate offices & organized sectors are set to see change in the way they work and draw salary from next month. The take-home salary, contribution to Employees’ Provident Fund (EPF) and working hours, all are set to change as the government plans to roll out new labour laws from July 1.
According to the new wage codes, the in-hand salary of employees may take a beating as PF contributions will make for a bigger share of salary. The daily working hours of employees is likely to be raised to 12 hours per day, couple with 3 day week off.
About 23 states and UTs have released the draft rules under new wage code, however, there has been no official announcement about the roll-out of scheme from July 1 yet.
Work for 4 days a week
Those willing to stretch for longer hours and in return getting a longer week off, could have a reason to cheer here. Under the new wage code, the employees will get an option to work for 4 days in spite of 5 days in a week. It may look dreamy & rosy but the flip side is that they will have to put in longer hours extending upto 12 hours a day.
With number of working days getting reduced, the working hours are likely to get a steep hike. The new wage code mandates a 48-hour work week.
Currently, the employees who are putting in 8-9 hours of shift will have to be increased to 12 hour shift, if they opt for four-day week work culture. Once applicable, the new wage code will be applicable for all the sectors.
PF contribution higher, retirement amount to rise
Under the new labour laws, the Employees PF contribution will rise. The new law mandates that basic salary of an employee should be at least 50% of their gross monthly salary, thus pushing their contribution to the Provident Fund (EPF). This will also lead to increase in their retirement corpus as well as gratuity amount.
Take home salary
The employees take home salary is likely to take a beating as the PF contribution in pay package gets increased.