More number of states have come up with draft laws for the new wage code, which is delayed from the government's original plan of July 1 implementation of the new labour laws.
While the government has passed these new laws through the parliament, many states are yet to ratify the new codes; the implementation was delayed as labour is a subject on the concurrent list of the Constitution, and the states must ratify them.
According to the government, until now, 31 states and Union Territories have published the draft rules under the Code on Wages, 2019.
The soon-to-be-implemented new labour code will impact employees' working hours, take-home salary and leave conditions. The wage code mandates that the full and final settlement of the wages and dues should be completed within two days from the employee's last working day.
Similarly, the companies can increase employees' working hours if needed. In such cases, they have to offer extra leave.
The in-hand salary of the employees is also going to be impacted as the new wage code stipulates that the basic salary should be at least 50 per cent of the gross salary.
This will increase the contribution towards the provident fund by both the employee and the employer.
This labour code, passed by the Parliament in 2019, replaces 29 Central labour laws.
The four new codes on pay, social security, labour relations, occupational safety, health, and working conditions, were to be implemented from July 1.
Read how the new labour code will...
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