New wage code 2022: The wait for the new wage code may end soon. After the Rajya Sabha elections, the government can implement it. Preparations are going on for its draft for some time now.
Most of the states have also sent drafts on their behalf to the Center. A new update has also surfaced. According to information received from sources by Zee Business Digital, preparations are being made to implement the New Wage Code soon. The government does not want to delay it any longer. The Central Government is preparing to implement it for the last one year. It is ready to bring 4 labor codes together in the new wage code. The news is that some changes have been made in the new labor laws (New Wage Code 2022).
Earned leave may change
The New Labor Code was passed by the Parliament in 2019 itself. But, since then it was not implemented due to delay on the part of the states. Now it is set to be implemented from July-August 2022. However, just before this a big update has come to the fore. The government is going to make a big change to the employees regarding their earned leave. At present, 30 holidays are available in a year in government departments. At the same time, 60 holidays are available in a year in defense. There may be a provision to give cash in lieu of these holidays.
How many holidays are cash?
As per the current rules, cash is available against 300 holidays for carrying forward your holidays. But in the New Wage Code 2022, there has been a demand to increase the number of these holidays from 300 to 450. This demand has been made by the Labor Union. At present 240 to 300 holidays are cash in different departments.
450 will get cash in lieu of holidays
If sources are to be believed, in the New Wage Code 2022, the government can increase the limit of Earned Leave from 300 to 450. Meaning employees will be able to take cash in lieu of their 450 holidays. However, employees can take these holidays in cash only after 20 years of service.
There will be a big change in the salary structure
If sources are to be believed, there were some disagreements regarding the salary structure in the New Wage Code 2022, but after discussions between the Labor Ministry and the Labor Union, new drafts have been prepared. In the current guideline, there was talk of keeping 50% of the total CTC in basic salary and 50% in allowance. But, now there may be a slight change in the structure. According to sources, as soon as the new wage code is implemented, the part of allowance will not be kept at 50% directly. Rather it will be increased gradually.
Which allowances will be included?
According to Virjesh Upadhyay, general secretary of the Bharatiya Mazdoor Sangh, the industry had opposed the introduction of 50% allowance in the new salary structure. So it is likely to change. The new labor code will also include Basic Pay, Dearness Allowances (DA) and Retaining Allowances.
Which allowances will not be included?
House Rent Allowance (HRA) and Overtime Allowance will not be included in the New Wage Code 2022. With the inclusion of the allowance, the employee and the employer will have to contribute more to the provident fund. The amount of gratuity will also increase.
