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PM Modi likely to announce big changes in working hours, PF, the salary of Government Employees

From April 1, 2021, there may be major changes in official working hours, provident fund and gratuity.

With three pay code bills coming into effect from April 1 this year, gratuity and PF are likely to increase, with some wage cuts.

According to the new definition of salary, allowances are a maximum of 50% of the total salary. 

That means the basic salary (basic salary and beloved allowance in government jobs) should be 50 percent or more of the total salary coming from April. 

It is noteworthy that for the first time in the country‚Äôs 73-year history labor laws have been changed. 

The government claims that this will benefit employers and workers.

Salary decreases but PF increases?

Under the new draft rule, the basic salary should be 50% or more of the total salary. 

This changes the salary structure of many employees because the non-allowance portion of the salary is usually less than 50 percent of the total salary. 

The share of allowances in the total salary will increase further. Increasing the basic salary will also increase your PF. 

PF is based on Basic Pay. An increase in basic wages increases PF, which means a pay cut on a take-home or hands-on basis.

The amount increases upon retirement

The increase in gratuity and PF contribution will eventually increase the amount received after retirement. 

It makes it easier for people to live a pleasant life after retirement. 

The salary structure of high-paid officers is highly variable and largely unaffected. 

An increase in PF and gratuity will also increase the cost to companies. Because even for the employees they should provide more contribution to the PF. 

These factors also have an impact on the balance sheet of companies.

Proposed new rules for 12-hour work

The new draft law proposes to increase the maximum working hours to 12. 

The draft rules of the OSCH code also provide for the inclusion of additional work between 15 minutes and 30 minutes. 

Under the current rule, overtime of fewer than 30 minutes is not considered eligible.

Employees should not work more than five hours

Draft rules prohibit any employee from working more than 5 hours in a row.

The draft regulations include instructions to give employees a half-hour break every five hours.


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