The Centre is likely to soon implement four new labour codes under the amended labour law, aimed at improving an employee’s well-being at work. Once implemented, the new labour codes are expected to revamp the rules dictating the age old relationship between employees and their employers. The central government has been working on designing the four new labour codes, under which there will be significant changes in terms of an employee’s salary, leave encashment, annual leaves, and final settlement if an employee decides to leave a company.
One of the most important aspects of the labour codes is that they lay down a new definition of wages, under which the take home salary and PF contributions will be impacted. “With the objective of uniformity, a new definition of wages has been introduced. This is a critical change since it would impact several statutory pay-outs such as bonus, gratuity, and contributions towards provident funds and employees’ state insurance," said Vaibhav Bhardwaj, partner at IndusLaw.
As per the provision of the new codes, the basic salary of the employee will have to be 50 per cent of the gross salary. While this will mean that PF contributions of the employee and employer will increase, the take home salary will decrease for some employees, especially those working in private firms. The money received after retirement as well as the gratuity amount will also increase under the provisions of the new...
In 2025, U.K. insurers found fewer bogus claims than in 2024, but the cases they intercepted tended to involve more money. According to The Independent, insurers stopped 1.34 billion (about $1.77 ...