Change in monthly pay from October 1: New Labor Act
The federal government is due to enact an important new labor law on October 1 that should be taken into account by all employees who receive a monthly salary. The implementation of the new law will increase the working hours of the employees, as well as the possibility of several major changes in the salary. It is also likely to reduce the amount of salary received by some employees in particular.
Working hours
Under the new labor law, a company can increase the working hours of their employees from the current 9 hours to 12 hours at their discretion. This is not mandatory for all companies, as well as this change, will be made on a voluntary basis. Salary will also be increased in return for working hours. This important change will take effect on October 1. With this change, companies in India can officially use the framework of working only 4 days a week.
50 percent basic salary
The new labor law changes the requirement that at least 50 percent of the total salary of employees be the basic salary.
Payment amount
At the same time, it is mandated to be less than 50 percent of the total salary in another category such as non-salary allowance. As a result, the salaries of most employees are likely to vary from October 1.
Provident fund money
The new change will increase the amount of Provident Fund money deducted from employees’ salaries. 12 + 12 = 24% of the basic salary will be paid into the provident fund account. Thus the security of the employees is increased by the PF money even though the amount of salary received by the employees is reduced.
Graduation Favorite
In the same calculation, gratuity money is also increased, which also affects the monthly salary. Employees will reap huge profits in the long run, even if they have a huge salary cut on hand each month by making more money in the Graduation and BP segment.
Gratuity will increase
Generally, companies pay gratuity as the equivalent of 15 days of the last basic pay for each year of service. So as the basic salary increases so do the gratuity. This will increase the amount that companies prefer.
Overtime calculation
Similarly, 30 minutes of overtime will be considered if employees work an extra 15 to 30 minutes. This will greatly benefit every factory worker who works overtime.
Work 5 hours
At the same time, the new labor law stipulates that employees must not work more than 5 hours without a break for the benefit of the workers. The law stipulates that employees must take a 30-minute break every 5 hours. This will benefit everyone working in the manufacturing industry.
