New Labour laws from July 1: All you need to know on in-hand salary, increased work hours

As the Centre plans to implement labour laws from July 1, the in-hand salary, contribution to Employees' Provident Fund, and working hours could change significantly. The employees will witness a series of modifications including increased work hours, PF contributions, and decreased in-hand salary with the newly prescribed wage codes. 

The government is planning to implement the new labour codes from July 1.

States on new labour law

So far, only 23 states and Union Territories (UTs) have published the draft rules under the Code on Wages while a few states are yet to frame the rules under all four labour codes, Minister of State for Labour and Employment Rameshwar Teli had said in a written reply to Lok Sabha.

As per the new laws, the companies are allowed to increase the working hours from 8-9 hours a day to 12 hours but have to offer three weekly offs.

So, total working hours in a week will not be affected as the working days in a week will be reduced to four days. The new wage code mandates total working hours of 48 per week.

With the basic salary being at least 50 per cent of the gross monthly salary under the new wage code, the employees' take-home salary will also change significantly. This will further increase the PF contributions made by employees and employers.

The in-hand salary is going to be affected more for the employees in the private sector. It is learned that the retirement corpus and gratuity amount will increase under the new labour laws. 

By subsuming 29 Central labour laws, the four labour codes, wages, social security, industrial relations, occupational safety, health, and working conditions were created.

The parliament has passed the codes, but as labour is a subject in the Concurrent List of the Constitution, the states need to notify the rules under the new codes.

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