{"id":4098,"date":"2021-03-12T07:09:37","date_gmt":"2021-03-12T07:09:37","guid":{"rendered":"https:\/\/indithinkk.com\/?p=4098"},"modified":"2021-04-03T05:24:19","modified_gmt":"2021-04-03T05:24:19","slug":"new-labour-codes-to-affect-employees-in-hand-salary-companies-wage-bill","status":"publish","type":"post","link":"https:\/\/indithinkk.com\/index.php\/2021\/03\/12\/new-labour-codes-to-affect-employees-in-hand-salary-companies-wage-bill\/","title":{"rendered":"New labour codes to affect employees&#8217; in-hand salary, companies wage bill"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"4098\" class=\"elementor elementor-4098\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1403a5a ops-section elementor-section-boxed elementor-section-height-default elementor-section-height-default jltma-glass-effect-no\" data-id=\"1403a5a\" data-element_type=\"section\" data-e-type=\"section\" 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data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-21d53e5 jltma-glass-effect-no elementor-widget elementor-widget-image\" data-id=\"21d53e5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1024\" height=\"713\" src=\"https:\/\/indithinkk.com\/wp-content\/uploads\/2021\/03\/956276-labour-codes-employees-1024x713.jpg\" class=\"attachment-large size-large wp-image-4099\" alt=\"\" srcset=\"https:\/\/indithinkk.com\/wp-content\/uploads\/2021\/03\/956276-labour-codes-employees-1024x713.jpg 1024w, https:\/\/indithinkk.com\/wp-content\/uploads\/2021\/03\/956276-labour-codes-employees-600x418.jpg 600w, https:\/\/indithinkk.com\/wp-content\/uploads\/2021\/03\/956276-labour-codes-employees-300x209.jpg 300w, https:\/\/indithinkk.com\/wp-content\/uploads\/2021\/03\/956276-labour-codes-employees-768x535.jpg 768w, https:\/\/indithinkk.com\/wp-content\/uploads\/2021\/03\/956276-labour-codes-employees.jpg 1034w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-13ba6cdd elementor-section-boxed elementor-section-height-default elementor-section-height-default jltma-glass-effect-no\" data-id=\"13ba6cdd\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1d5f66f3 jltma-glass-effect-no\" data-id=\"1d5f66f3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5b81ecec jltma-glass-effect-no elementor-widget elementor-widget-text-editor\" data-id=\"5b81ecec\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\n<p>The central government is ready to notify the rules under the new labor code; which will have an impact on the cost of employees of the company (CTC) as well as the salary bills of employers. Employers will have to revise employee compensation after extensive labor reforms are introduced to accommodate the new definition of pay. Expected changes for employees include post-retirement benefits, while declining take-home salary. Employers are likely to see increased salary towards provident fund (PF) and gratuity contributions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Under the Code on Wages, 2019, wages will include three components <\/strong><\/h2>\n\n\n\n<p>basic pay &#8211; dearness allowance (linked to inflation) and retention payments. While it envisages all remuneration provided to employees, it excludes bonus; pension and PF contributions, convention allowance, HRA or housing benefit, overtime, gratuity, commission, retrenchment compensation, etc.<\/p>\n\n\n\n<p>The new pay code states that employees will have 50 percent of the CTC in the base salary. Employees must limit allowances such as vacation travel, house rent, overtime and convention to the remaining 50 percent of the CTC. If any of these exemptions is more than 50 percent of the total then the additional amount will be treated as remuneration and added to the salary.<\/p>\n\n\n\n<p>Meanwhile, gratuity will also have to undergo some changes as per the new pay code. Under the new definition, gratuity will be calculated on a larger basis; including basic salary as well as other allowances of salary such as travel, special allowance, etc. This will add to the companies&#8217; gratuity costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>While the new definition of wages will increase the social security component of compensation packages<\/strong><\/h2>\n\n\n\n<p>It could also mean lesser take-home salary for employees.<\/p>\n\n\n\n<p>The four broad labour codes on wages, industrial relations, social security and occupational safety; health and working conditions (OSH) have already been notified after the President&#8217;s approval, subsuming 44 central labour laws. The Code on Wages was passed by Parliament in 2019 while the three other codes got clearance from both the Houses in 2020. The Ministry of Labour and Employment has now finalised the rules under these codes, paving the way for their implementation.<\/p>\n\n\n\n<p>&#8220;We have finalised the rules under the four codes which are required to implement the four labour codes. We are ready to notify these rules. The states are doing their work to firm up rules under the four codes,&#8221; Labour Secretary Apurva Chandra recently told news agency PTI.<\/p>\n\n\n\n<p>source:- business today<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-11b9ccb elementor-section-boxed elementor-section-height-default elementor-section-height-default jltma-glass-effect-no\" data-id=\"11b9ccb\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-58ae25a jltma-glass-effect-no\" data-id=\"58ae25a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-739089f elementor-section-boxed elementor-section-height-default elementor-section-height-default jltma-glass-effect-no\" data-id=\"739089f\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-31b8068 jltma-glass-effect-no\" data-id=\"31b8068\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-1eb41cb elementor-section-boxed elementor-section-height-default elementor-section-height-default jltma-glass-effect-no\" data-id=\"1eb41cb\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-4a5784c jltma-glass-effect-no\" data-id=\"4a5784c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d9eefd1 jltma-glass-effect-no elementor-widget elementor-widget-retina\" data-id=\"d9eefd1\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;align&quot;:&quot;left&quot;,&quot;width&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:150,&quot;sizes&quot;:[]},&quot;width_tablet&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;width_mobile&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;space&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;space_tablet&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;space_mobile&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;image_border_radius&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;image_border_radius_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;image_border_radius_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true}}\" 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