From April 1: Change in Working Hours and Retirement Regulations - Viral Bake

Modi government is going to make a change in working hours and retirement regulations. In this law, provident fund and gratuity items of employees will increase and take home salary will decrease. Meanwhile, the balance sheet of the organisation will be affected. The reason behind this is the three Wage Code Bill introduced last year. It will come into effect from April 1, 2021.

Under this bill, it is expected that the allowances of the employee will increase by 50% of the total salary. It means that the basic salary and other allowances should be 50% or more of the total salary from April 01. Modi government says that the change in labour law will be beneficial for workers as well as employers.

Source: Zee Business

Also Read: Twitter Says That It Will Allow Employees To Work From Home ‘Forever’

Proposal to Work For 12 Hours With Half an Hour Break Every Five Hours

The newest draft and change in working hours and retirement regulations propose to increase the working hours of an employee to a maximum of 12 hours. Also, the draft of the OSH Code suggests providing 30 minutes for the addition of between 15 to 30 minutes. As per the current rule, less than 30 minutes do not fall under overtime. This draft also prohibits employees working continuously working for more than 5 hours. In this draft rules, it is included that employees should get half an hour break after every 5 hours.

Salary Decreases and PF Increases

As per the new rule, the basic salary of an employee should be 50% or more of the total salary. This proposal will change the pay structure of employees because the non-allowance salary proportion is generally less than 50% of the total salary. Meanwhile, the allowances in the total salary will increase. An increase in basic salary will directly increase employee’s PF. If basic pay is increased then the in-take-home will automatically decrease.

Also Read: EPFO: Your Take-Home Salary May Increase In The Coming Months

Retirement Amount Will Increase

As we have discussed, a decrease in in-home salary will provide a chance to increase gratuity and PF amount. It will help people to live a lovely and enjoyable life after retirement. It is expected that the high-paid officer’s salary structure will have the biggest effect.


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Vivek Singh

With over 5 years of writing obituaries for a different organisation, I have a uniquely wry voice that shines through in my newest collection of articles.