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Big news! Employees will get 3 days off in a week, take home salary will decrease, PF will increase and will have to work for 12 hours from Jan 1st

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New Labor Codes: The new labor law in the country can be implemented from April 2022 i.e. from the new financial year. The news agency PTI has confirmed this quoting a senior official attached to the Ministry of Finance.


This will change from the salary of the employees to their holidays and working hours. According to this, there will be four days of work and three days off in a week. In this, the working hours will be 12 instead of eight. However, the Ministry of Labor has also made it clear that the rule of 48 hours of work in a week will be applicable.

Earlier these labor laws were to come into force in 2021. Because this subject is within the purview of both the Center and the State. In such a situation, both the state and the center will have to implement it to get it off the ground. At present, there are many such states which are preparing drafts on this.

What’s in the law

It will also have the facility that where eight hours of work will be done, there will be a day off. Giving information, a senior official said that at least 13 states have prepared the draft rules for these laws. Let us tell you that there are many such provisions in the new labor force, which will affect from the salaried employees working in the office to the workers working in mills and factories.

Center gave final shape

Four labor codes on wages, social security, industrial relations and occupational safety and health and working conditions are likely to be implemented by the next financial year. The Center has finalized the rules under these codes and now states have to make their own rules, as labor is a subject in the Concurrent List. The four labor codes are likely to be implemented by the next financial year, the official said.

A large number of states have finalized their draft rules, he said. The Center had completed the process of finalizing the draft rules for these codes in February 2021, but since labor is a concurrent subject, the Center wants states to implement it simultaneously.


Union Labor Minister Bhupendra Yadav, in reply to a question in the Rajya Sabha earlier this week, said that at least 13 states have prepared the draft rules of the Labor Code on occupational safety, health and working conditions. Apart from this, 24 states and union territories have prepared draft rules on labor code on wages. The draft rules of the Industrial Relations Code have been prepared by 20 states and the draft rules of the Social Security Code have been prepared by 18 states.

Salary in hand will get less PF more

Experts say that with the new law, there will be a big change in the way of calculation of Basic Salary (Basic) and Provident Fund (PF) of employees. Due to this, on one hand the contribution of employees in the PF account will increase every month but the salary in hand (take home) will decrease. In the new labor code, the allowances have been capped at 50 per cent. This will make the basic salary 50 percent of the total salary of the employees.

PF is calculated on the basis of percentage of basic pay which includes basic pay and dearness allowance. In such a situation, if an employee’s salary is 50 thousand rupees per month, then his basic salary will be 25 thousand rupees and the remaining 25 thousand rupees will include allowances. Due to increase in basic salary, PF will be deducted more on behalf of the employee and the contribution of the company will also increase.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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