What is New Labor Code: Soon the central government is going to give a big gift to all the employees by implementing new labor codes. Most of the states of the country are ready to implement these labor codes. The government can implement these four new labor codes in a phased manner. Let us know the complete details of these labor codes as well as when will the new labor codes be implemented.
What is New Labor Code?
The government has created 4 new labor codes by combining 29 central labor laws. These include the Industrial Relations Code, Code on Occupational Safety, Health and Working Conditions Code (OSH), Social Security Code, and Code on Wages.
The biggest change in the New Labor Codes is the definition of ‘Wage’. It has been expanded. The new labor code is aimed at consolidation. 50% of the salary will be directly included in the wages. These new laws have been passed, they just have to be implemented.
Types of new labor codes
In order to improve the labor laws, the Labor Ministry has incorporated the old labor laws into four major codes. The implementation of these labor codes will greatly benefit the employees. Following are the four labor codes being implemented by the government.
- Wage Code,
- Code on Industrial Relations,
- job security,
- Code on Health and Work Conditions (OSH) and Social and Occupational Safety
New Labor Codes Implementation Date:
According to the information received from the sources, New Labor Codes can be implemented by the Ministry of Labor from October 1. Even if by then all the states do not get drafts on the four codes, even then there is a preparation to implement it.
New Labor Codes will be implemented in a phased manner. There is a plan to issue the notification before October 1, 2022. Meaning they will be considered applicable from 1 October 2022. According to the information received, the states can implement them at their level, but for this, they will have to give a final deadline.
Benefits of New Labor Codes
According to EPFO board member and Bharatiya Mazdoor Sangh general secretary Virjesh Upadhyay, social security is very important for employees. Therefore the new Labor Codes will have the following benefits.
- working days in a week will decrease
- will get overtime
- The basic salary will increase
- will increase part-time jobs
- There will also be changes in EPF, Gratuity
Working days:
- The working days of the employees will be reduced in the week.
- The working days of employees may be reduced from five to four a week.
- Employees will get three days off a week.
- The daily working hours of the employees will increase.
- Have to work 48 hours a week.
- One working day has to work for 12 hours.
Overtime:
- An employee must work 48 hours a week.
- According to four working days in a week, 12 hours of work will have to be done in a day.
- If an employee is made to work more than 12 hours in a week, then he will be given overtime.
- Employees cannot work more than 125 hours of overtime in 3 months. No employee can be made to work
- continuously for more than 5 hours. After working for 5 consecutive hours, the employee will have to give half an hour break.
EPF:
- Contribution to gratuity will also increase along with Provident Fund.
- Take-home salary will definitely decrease but the employee will get more amount on retirement.
- The New Wage Code 2022 will also be applicable to the employees of the unorganized sector.
- There will be equality in the salary of the employees working in every industry and sector.
Basic salary:
Currently, companies keep only 25-30 percent of the CTC in the basic salary. In such a situation, all types of allowances range from 70 to 75 percent. Due to these allowances, more salary comes on account of the employees, as all kinds of deductions are made on the basic salary.
- The basic salary of the employee will increase.
- All allowances cannot exceed 50% of the total salary.
- An increase in the basic salary will reduce the employee’s in-hand salary or take-home salary.
- Gratuity, pension, and the contribution of both the employee and the company to the PF will increase.
- Employee savings will increase.
PM Modi on New Labor Codes
PM Modi had said in a recent program that the government is in favor of providing a better working environment to the employees. Work from the home ecosystem, and flexible workplaces, and flexible working hours are the needs of the future.
PM Narendra Modi said, “You are also seeing the way the nature of jobs is changing with the changing times. The world is changing rapidly and to take advantage of it, we also have to be ready at the same pace.”
When will the wait end?
Employees have been waiting for the implementation of 4 labor codes in the country for a long time. All employees want these reforms to be implemented as soon as possible. The Union Ministry of Labor and Employment finalized the rules under these labor codes last year.
Earlier it was said by the government that these labor codes would be implemented from the financial year 2022-23 i.e. from April 1, but it did not happen. After this, it was said that these labor codes can be implemented from July 1. But due to the non-preparation of drafts by many states, these could not be implemented.
FAQ: What is New Labor Code
Q: When will the new labor law come into force?
Ans: According to the sources of the Ministry of Labor, the new labor law can be implemented from October 1.
Q: What is the new labor code 2022 in India?
Ans: To ensure the future of the employees of the country, the government has made 4 new codes by combining 29 central labor laws.
Q: How many labor laws are there in the country today?
Ans: At present 128 labor and industrial legislations are in force in India.