New Labour Laws in July: PF to increase, in-hand salary to decrease, employees to get 12 off days

New Delhi: The Central government is likely to implement the new labour code from July 1. According to reports, the government will make sweeping changes to the salary structure, work conditions and week-offs. The new labour code will make a provision for a 4-day work week. No employee would be made to work more than 48 hours a week, which means those who work for 12 hours per day will be entitled to three week-offs. This means they would work for only 16 days every month. Four new labour codes have been prepared after merging 44 sections of the Central Labour Act. 

Under this labour code, the government will make provisions to bring the workers of the unorganised sectors of the economy under the ambit of health insurance schemes. These employees are likely to get ESIC cover. The salary structure of all employees will be changed. The basic salary will become 50 percent of the total salary. This would increase the employee's provident fund contribution and decrease the take home salary.

After it is implemented, the labour force will be entitled to leaves after 180 days of work. Earlier the time period was 240 days. Those who work 10 hours per day will be entitled to two week-offs. Those who work 8 hours a day will be entitled to one week-off. No worker can be made to work more than 48 hours per week. 

The new labour code will make it easier for the companies to lay off workers. The companies with less than 300 employees won't have to seek government's permission before asking employees to leave. 

There would also be a provision for a pan-India minimum wage for employees.