New Labour Laws: How will it change office working hours if implemented from July 1

There is likely to be a significant change in office working hours, an employee’s provident fund (EPF) contributions and in-hand salary from July 1. It is reported that office hours and PF contributions are likely to increase, while in-hand salary is expected to decrease.

News agency MoneyControl reported that the government is working to implement a set of four new labour codes as soon as possible. However, as some states have not yet framed the rules, this change is expected to effect from July 1.

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The government says the new labour laws will boost investments in the country and increase employment opportunities.

These new laws will allow companies to change the office working hours significantly. They can increase the office working hours from 8-9 hours to 12 hours.

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But they will have to compensate their employees by giving them three weekly offs. The idea is not to alter the total working hours in a week.

Another significant change is allegedly to be in the take-home salary component and employers’ contribution to the provident fund. The new codes may peg the employee’s basic salary at 50 per cent of the gross salary.

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While this helps an employee, it will increase the PF contributions of the employee and the employer. The take-home salary will decrease for some employees, especially those in the private sector.

The money received after retirement and the gratuity amount will also increase. This will enable employees to lead a better life after retirement.

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So far, 23 states have reportedly framed labour code rules. The other seven have not yet. An essential part of the Constitution, 29 central labour laws in India have been divided into four codes: wages, social security, industrial relations, occupational safety and health and working conditions.

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The parliament has passed these codes. But labour is a concurrent list subject, so the Centre wants the states to implement these rules in one go.