Occupational Safety, Health and dealing Conditions (OSHW&C) Code, 2020, has provisions for safety, health and dealing conditions of workers which include daily and weekly working hours, leave etc. The OSHW&C Code, 2020 has been published on 29th September, 2020 and can inherit force on the date as notified by the Central Government. The OSHW&C Code, 2020 and draft Rules framed thereunder provide that no worker shall be required or allowed to figure , in any establishment or class of establishments for quite eight hours during each day or forty eight hours during every week .From April 1, 2021, there may be a significant change in the gratuity, provident fund (PF) and working hours. Even the balance sheets of companies are going to be affected. The reason behind these changes is that the three Wages Code Bill passed in Parliament last year. These Bills are likely to return into force from April 1 this year. Under the new definition of wage, allowances are going to be a maximum of fifty percent of the entire salary. This means that the essential salary (basic pay and dearness allowance in government jobs) should be 50 percent or quite the entire salary. Most employees’ pay structure will change, because the non-allowance portion of the salary is typically but 50 percent of the entire salary. At an equivalent time, the share of allowances within the total wage becomes even more. Increasing your basic salary will also increase your PF which is based on basic salary. Increasing the essential pay will increase the PF, which suggests there’ll be a cut in take-home salary.
An increase in contribution to gratuity and PF will increase the quantity received after retirement. The salary structure of high-paid employees will change and can be the foremost affected. Increasing PF and gratuity also will increase the worth of companies. Because they too need to contribute more to the PF for the workers . An official said, “The Labor Ministry has suggested to the Parliamentary Committee something which, if accepted, can increase the take home take-home the employed people but may cause loss to the pensioners. The Ministry of Labor has suggested reducing both employee and employer contribution to Employee Provident Fund (EPF) from 12% to 10%.” The new law will increase the utmost working hours to 12 hours. According to the new law, the work done quite 15-30 minutes are going to be counted overtime. Less than half-hour isn’t considered overtime-eligible within the current rule. It prohibits an employee from working continuously for quite 5 hours. Instructions to offer employees a remainder of half an hour after every five hours also are included within the rules.
