India is likely to implement four new labour codes on wages, social security, industrial relations, and occupational safety by the next fiscal year beginning 2022, according to a senior government official cited by the PTI news agency.
Under these new codes, a number of aspects related to employment and work culture, in general, might change – including the take-home salary of employees, working hours, and the number of weekdays.
If the new labour codes are implemented, there’s a likelihood that employees in India may be able to enjoy a four-day workweek from next year, as opposed to the current five-day workweek
In that case, however, employees will have to work for 12 hours on those four days since the labour ministry has made it clear that even if the proposal comes through, the 48-hour weekly work requirement has to be met.
The labour codes also attain added significance in light of the fact that once these are implemented, there would be a reduction in the take-home pay of employees and firms will have to bear a higher provident fund liability.
According to experts who are assessing the proposed labour codes, the new laws will bring about a major change in the way employees calculate their basic pay and the provident fund (PF). Under these new codes, the contribution of employees to their PF account every month will increase but the monthly in-hand salary would get reduced, in turn.
