Only 4 days job from 1st April
The new financial year is starting from April 1 and the key rules and laws may change in the new financial year. The biggest change may come in employees’ working hours. According to a report, working hours can be up to 12 hours from the new financial year. At the same time, the gratuity of the employees and the provident fund may also increase. However, it is important to clarify that employees will have to work only 4 days a week, even if the working hours are 12 hours.
This change will come from the new Wage Act
- According to the new definition of wage, allowances will now be a maximum of 50 per cent of the total salary.
- For the first time in the 73-year history of independent India, major changes have been made in labor laws.
- The central government claims that the new law will benefit both employers and workers.
- According to the new rule, the basic salary should now be 50 per cent or more of the total salary. If this happens then the salary structure of the employees will change.
- Since the provident fund is based on the basic salary, the increase in the basic salary will increase the PF, which means that there will be a cut in the salary at the take-home or at hand.
- Increasing the gratuity or PF of the employees will increase the amount received after retirement.
- The new draft law proposes to work for a maximum of 12 hours.
- The rules prohibit any employee from working more than 5 hours continuously.
- Employees are instructed to rest for 30 minutes every 5 hours.
The new law could take effect on April 1
Notably, 3 Wage Code Bills were passed in Parliament last year. All three laws could take effect on April 1. If this happens then the money in the hands of the employees will be reduced.
At the same time, it will affect employees and employers. The new rules will also affect the balance sheets of private companies.