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Saturday, 19 June 2021

Good news for employees: work 4 days a week instead of 5, 3 days off, government is bringing new rules

 Good news for employees: work 4 days a week instead of 5, 3 days off, government is bringing new rules




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Source VTV

There is good news for employees.  Now they are going to get relief in working hours and days.  The government is soon considering giving four days job instead of five days a week and 3 days leave instead of two days.  This will be possible in the coming days under the new labor laws made in the country.  On the other hand, the Central Government has increased the Travel Allowance (TA) from 60 days to 180 days.  It will be implemented from 15 June 2021.  In March 2018, the central government reduced the time limit for TM claims on retirement from 1 year to 60 days.  The decision has been taken after several government departments were asking to increase the limit.


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 Will have to work 4 days instead of five


 In the new Labor Code, this option will also be included in the rules, on the basis of which the company and employees can make a decision by mutual consent.  Under the new rules, the government has increased working hours to 12.  The maximum working hours limit is 48 hours per week, in which case the number of working days can be reduced.






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 The new draft law proposes to increase the maximum working hours to 12.  In the draft rules of the code, there is a provision to include additional work between 15 and 30 minutes in overtime by calculating 30 minutes.  Under the current rule, less than 30 minutes is not considered eligible for overtime.  The draft rules prohibit any employee from working continuously for more than 5 hours.  Employees have to rest for half an hour every five hours

 Salary will decrease and PF will increase



 According to the new draft rule, the basic salary should be 50% or more of the total salary.  This will change the pay structure of most employees.  Home pay can be reduced and the amount of PF can be increased.  After the implementation of the new pay code, employers will have to pay the employee 50 per cent of the CTC as basic pay.  This will increase the contribution of employees towards other components like PF and gratuity.  Bonuses, pensions, convention allowances, house rent allowances, housing benefits, overtime, etc. will be deducted when the new pay code comes into force.  Companies have to ensure that some of the other components included in the CTC other than the basic salary should not exceed 50 per cent and the remaining half should be the basic salary.


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