The central government is planning to implement new labour laws from July 1, which may impact the in-hand salary, contribution to the Employees’ Provident Fund and working hours significantly.

The newly prescribed wage codes lay down a series of modifications, resulting in increased PF contributions, work hours and lesser in-hand salary for employees.

The government is in the process of implementing the new labour laws from July 1.

While companies can increase the working hours from 8-9 hours to 12 hours a day, they will have to provide three weekly offs in place of two.

This way, the total number of working days will be reduced to four without any changes in working hours. An employee has to work 48 hours a week according to the new labour laws.

The in-hand salary of employees will also be affected as the basic salary will be at least 50 per cent of the gross monthly salary under the new wage code. The PF contributions of every employee will also be increased under the new wage code.

The in-hand salary of private sector employees will be affected more as compared to government employees. The gratuity amount and retirement corpus will also increase under the new labour laws.

Although the new wage codes have been passed in the parliament, labour is a subject in the concurrent list of the Constitution, which means that the states will have to notify the rules under new codes.

Only 23 states and Union Territories (UTs) have published the draft rules under the Code on Wages so far, Minister of State for Labour and Employment Rameshwar Teli had said in a written reply to Lok Sabha.

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