New Labor Code India: Four new labor codes from the Central Government are going to affect crores of workers. Many things related to their salary structure, provident fund contribution, ESI benefits, gratuity etc. will be affected by the new labor law.
Under the new Labor Code, some special provisions have also been made. In which some definitions like minimum wage, gratuity for fixed term employees on one year’s service, beneficial rules for gig workers, salary and night shift rule for women are included. Let us know what changes are going to happen with the new Labor Code…
1. New definition of salary
In the new Labor Code, almost all the salary components received by the employee have been included in the definition of salary. But some things are not included in it. Such as House Rent Allowance (HRA), Conveyance Allowance, Travel Concession, Bonus received under any law, Commission and amount given to compensate for special expenses related to the job.
According to the new rule, the allowance should not be more than 50 percent of the total salary. There is a rule to transfer the extra portion of allowance back to wages.
2. Social Security for Gig Workers
Under the new labor code, arrangements for social security have been made for gig workers. Companies will have to deposit 1–2 percent of their turnover in the Social Security Corpus. This money will be used to arrange necessary facilities for gig workers.
3. Provident Fund Rules
Under the new Labor Code, the scope of Provident Fund has been expanded. Under this, all those industries or places where 20 or more employees work. They will have to provide PF facility. Earlier this rule was applicable only to the notified sector. This change will benefit many workers who did not get the facility of PF.
4. Gratuity Benefits
Under the new Labor Code, now employees will not have to wait for 5 years to get the benefit of gratuity. Rather, there is a provision to give them gratuity only after 1 year of service. Which will directly benefit the employees. Along with this, they will also get other benefits.
Also read: Are you planning to leave the job? Start this cool business with Rs 5000, you will earn bumper from the very first day
