Four-day work week, new pay structure: How India’s work culture might change next year

four day work week: In India, four days’ work may soon become a reality. According to a report, the central government may implement four new labor codes on n wages, social security, industrial relations and occupational safety, health and working conditions. This will be done by the fiscal year beginning 2022, the report suggested, quoting a senior government official. Under the new rules, employees across India are likely to take three days off and four days off work every week. The Center has already finalized the rules under these codes and now states are required to frame their own rules as labor is a concurrent subject, the report said.

If the new rules are to be implemented, the work culture in the country in general will change. In addition to the number of workdays, an employee’s take-home pay may also see a change in the hours worked. Unlike the current five-day working week, employees can enjoy a four-day work week with three days off from the next fiscal, news agency PTI reports.

“The four labor codes are likely to come into force in the next financial year 2022-23 as a large number of states have finalized the draft rules on these. The Center has completed the process of finalizing the draft rules on these codes in February 2021. But since labor is a concurrent subject, the Center wants the states to implement it in one go.

Union Labor Minister Bhupendra Yadav, in a reply in the Rajya Sabha last week, said the Occupational Safety, Health and Working Conditions Code is the only code on which at least 13 states have already published draft rules.

The report said that 13 states have pre-published draft rules on codes of occupational safety, health and working conditions. These are Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Arunachal Pradesh, Haryana, Jharkhand, Punjab, Manipur, Bihar, Himachal Pradesh and the Union Territory of Jammu and Kashmir.

According to a report in Hindustan Times, the take home salary of employees is also going to come down, citing experts who have assessed the new labor code. This is because these laws are about to change the way provident fund is calculated. It will reportedly stipulate that allowances cannot exceed 50 per cent of the total pay, which means that the basic pay must be 50 per cent or more of the total pay. Generally, employers keep the non-allowance portion of the salary below 50 per cent, resulting in higher wages for the employees. However, once the changes are introduced, employers are required to increase the basic pay of employees. This will result in reduction in take-home pay due to increase in gratuity payment and contribution of employees to the provident fund.

The central government has notified four labor codes, namely the Wages Code, 2019 on August 8, 2019, and the Industrial Relations Code, 2020, the Social Security Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 on September 29. , on 2020. However, the Center as well as the states are required to notify the rules under the four codes for making these laws applicable in the respective jurisdictions. The power to make rules under the Codes is delegated to the Central Government, the State Government and the appropriate Government and requires the publication of the Rules in their Official Gazette for a period of 30 or 45 days for public consultation.

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