New Wage Code: Final date has arrived! States got a big discount, know the latest updates on this law related to your salary – taxgst.com

New wage code 2022 latest news: If sources are to be believed, then the central government is ready to notify the new wage code. The central government does not want to issue notifications without the consent of the states.

When will the new labor code be implemented? This question is booming in the mind of most of the employed. This code, which came into force from 1 April 2021, is being carried forward continuously. There are many speculations. But, the government has not given any formal deadline yet. However, according to sources in the Ministry of Labor, planning is underway to implement it from October 1, 2022. With the coming of the new wage code, there will be many changes. Let us know what is the update for you…

New Wage Code will be implemented in phases

If sources are to be believed, the New Wage Code can be implemented from October. But, it will not be implemented directly. It will be implemented in a sequential manner. Meaning the notification will be issued for this before October 1, 2022. It will be deemed to be applicable from 1 October 2022. But, the states have been relaxed in this. States can also implement a slight delay at their level. However, the final deadline will be worked out.

New wage code may be implemented from October

If sources are to be believed, the central government is ready to notify the New Wage Code. The central government does not want to issue notifications without the consent of the states. Therefore, the states will have the freedom to implement it in different phases. The draft rules are almost ready. New Wage Code can be implemented from October 2022.

What is the New Wager Code?

The government has made 4 new codes by combining 29 central labor laws. These include the Industrial Relations Code, Code on Occupational Safety, Health and Working Conditions Code (OSH), Social Security Code and Code on Wages. But, the biggest change is in the definition of ‘wage’. It has been expanded. The new labor code is aimed at consolidation. 50% of the salary will be directly included in the wages. Let us tell you, new laws related to labor reforms have been passed by the Parliament. Now to implement them.

How will the salary structure change?

According to the New Wage Code Act 2019, the basic salary of an employee cannot be less than 50% of the cost of the company (CTC). At present, many companies reduce the basic salary and give more allowances from above so that the burden on the company is reduced. With the implementation of the New Wage Code, the salary structure of the employees will change completely. The ‘Take Home Salary’ of the employees will decrease, because by increasing the Basic Pay, the PF of the employees will be deducted more, that is, their future will be more secure.

Rules of holidays, pension and working hours will change

According to EPFO ​​board member and Bharatiya Mazdoor Sangh general secretary Virjesh Upadhyay, social security is very important for employees. There are many important aspects to this. There is to be a change in the rules on important issues like working hours of employees, annual holidays, pension, PF, take home salary, retirement.

There will also be a change in PF, Gratuity

Contribution to gratuity will also increase along with Provident Fund. Take home salary will definitely decrease but the employee will get more amount on retirement. The New Wage Code 2022 will also be applicable for the employees of the unorganized sector. The rules related to salary and bonus will change and there will be equality in the salary of employees working in every industry and sector.

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