Indias New Labour Laws: 4-day work-week, change in salary; expected from FY 2022-23

Indias New Labour laws are expected to be implemented by the central and state governments in the financial year 2022. At least 13 states have pre-published proposed guidelines for the new labour codes, according to Union Labour Minister Bhupendra Yadav, who said in the Rajya Sabha during the winter session of parliament. The new labour laws – the wage code, the industrial relations code, the social security code, and the occupational safety, health, and working conditions code – were intended to take into effect in April 2022, according to the central government’s notification. The states were granted time to establish their own guidelines because labour is a concurrent concern.

What Changes Have Been Made To The Current Code?

The workweek may be reduced to four days under the new rule, but the weekly working hours will remain the same. According to analysts, this would mean a 12-hour workday, which would be equivalent to the existing 48-hour workweek.

Another alteration proposed in the new code is that basic wages and allowances would be limited to 50% of the CTC (cost-to-company), lowering employees’ in-hand salaries. Employee contributions to the Provident Fund, on the other hand, will rise, as will the employer’s contribution. 

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