News Brief
Changes In Working Hours, Provident Fund And Gratuity From April With New Wage Code Bills Coming Into Effect
Swarajya Staff
Mar 03, 2021, 04:50 PM | Updated 04:50 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Substantial changes are expected in official working hours, provident fund (PF) and gratuity as the three wage code bills will likely come into effect from 1st April 2021.
Gratuity and PF may increase whereas the take-home salary might suffer a dip.
Under the new law, the allowances can be a maximum of 50 per cent of the total salary. This means that the basic pay (basic pay and dearness allowance in government jobs) should be 50 per cent or more of the total salary from April.
This will change the salary structure of most of the employees, as the non-allowance portion of the salary is usually less than 50 per cent of the total salary.
Since, the PF is based on basic pay, it is set to see an increase, decreasing thetake-home or hand-in-hand pay. This expansion of PF and gratuity will increase the amount that an employee receives upon retirement and also shoot up the expenditure cost of companies.
The new draft rules also propose to increase the maximum hours of work to 12 hours.
Moreover, it also allows including additional work between 15 minutes to 30 minutes as overtime as extra work of less than 30 minutes did not qualify for overtime before. The rules prohibit more than five hours of continuous work for any employee, DNA India reports.
Hence, instructions have been rolled out to give workers a rest of half an hour after every five working hours.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.