Your office routine is set to change very soon. The government has listed several changes in the new law related to your salary. This law also has provisions that will ease your work conditions and give you relief from continuous working hours. Well, it is all about the New Wage Code Bill that the government is set to implement from April 1, 2021. This law will see several work-related change, allowing you to work with more concentration and dedication.
As per the New Labour Code, a break of 30 minutes would be mandatory after every five hours of work, giving employees enough time to freshen up before resuming work again. It actually prohibits over five hours of continuous work.
Also, in another benefit, over 15 minutes of work would now qualify as overtime as per the New Wage Code. Currently, less than 30 minutes of work after the working hours are over is not considered overtime.
Though it seems all okay so far, but there is a catch. This law may also cut down your take-home pay.
As per the provisions made in the New Labour Code, the minimum wages must account for half of an employee’s CTC. Employee benefits such as leave travel, house rent, overtime, and transportation would have to be reduced to the remaining 50% of CTC. According to the new regulations, the allowance portion of the total salary or compensation cannot exceed 50% of the total salary or compensation, which means that the basic salary must be 50%. So, the take-home salary of an employees is likely to come down as the contribution to provident fund (PF) and gratuity are to increase.