Why New Wage Code May Result in Lower Take Home Salary for Employees Next Year
4 years, 3 months ago

Why New Wage Code May Result in Lower Take Home Salary for Employees Next Year

News 18  

Employers may have to revise offer letters if the new Code on Wages becomes effective from April 1, 2021, which may result in a lower take-home salary for a majority of employees. “Given that the 50 percent of the wages has to be basic pay and the allowances cannot be above that threshold, it will definitely have an impact on the net take home wages of employees,” Lohit Bhatia, President, Workforce Management, Quess Corp, said. “The good part is that the rule writing is still underway so the implementation of the Code is likely to happen around the new financial year when employers and organizations in any case give appraisals. On one hand employers will be right by law and would give compensation letters with new breakups and also take care of appraisals of employees as organizations have not given appraisals for the current financial year due to the prevailing COVID-19 situation,” Bhatia remarked Gaurav Kumar, Founder and Chief Technology Officer, Valyu.

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History of this topic

New wage code 2022: Why your take home salary will be lower
2 years, 9 months ago

New wage code 2022: Why your take home salary will be lower

Live Mint  

New wage code 2022: After a delay of more than one year, the much awaited four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions are in news again. The new wage code is hitting headline as Union Labour Minister Bhupender Yadav has exuded confidence saying the four codes may soon become a reality …

Less take home salary, likely 4-day work week: India’s new labour laws may be implemented next fiscal year
3 years, 3 months ago

Less take home salary, likely 4-day work week: India’s new labour laws may be implemented next fiscal year

Live Mint  

The four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions are likely to be implemented by the next financial year, news agency PTI reported citing a senior government official. The four codes, if implemented, will drastically alter the way industrial houses treat their employees and also impact the working hours, take home salary …

New labour codes on the cards: PF liability of companies to rise, workers to see reduction in take-home pay
3 years, 9 months ago

New labour codes on the cards: PF liability of companies to rise, workers to see reduction in take-home pay

Firstpost  

Under the new wages code, allowances are capped at 50 percent. Employers have been splitting wages into numerous allowances to keep basic wages low to reduce provident fund and income tax outgo. New Delhi: The four labour codes are likely to see the light of day in a couple of months as the Centre is now keen to go ahead …

Your Take-Home Salary To Not Change From April 1; Govt Puts New Wage Code On Hold
4 years ago

Your Take-Home Salary To Not Change From April 1; Govt Puts New Wage Code On Hold

ABP News  

In a breather to lakhs of employees and thousands of employers, the new wage code, which was expected to modify most workers' current compensation systems, has been delayed and won't be implemented from April 1, as planned. According to salary expert Aon, most employers are still waiting for clarification on several new wage code points, including the components to be …

Deriving The Meaning Of 'Wage': A Comparative Analysis Of The Payment Of Wages Act, 1936 And The Code On Wages, 2019
4 years, 3 months ago

Deriving The Meaning Of 'Wage': A Comparative Analysis Of The Payment Of Wages Act, 1936 And The Code On Wages, 2019

Live Law  

A long-standing industry demand was the rationalisation and codification of labour laws. It amalgamates and subsumes four imperative labour laws - the Payment of Wages Act, 1936; the Minimum Wages Act, 1948; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. Unlike the definition under the Payment of Wages Act of 1936, the definition under the Code …

This is Why Your In-hand Salary Will Reduce from April 2021
4 years, 3 months ago

This is Why Your In-hand Salary Will Reduce from April 2021

News 18  

Recently, companies implemented pay-cuts during the coronavirus lockdown period, reducing the in-hand salary of employees. Now, the take-home salaries of employees are going to come down from April 2021 in view of the new wage rules, which require companies to restructure pay packages of their staff. What usually happens is, employers keep the non-allowance part of the salary below 50 …

A wage code that is a hasty composition
4 years, 6 months ago

A wage code that is a hasty composition

The Hindu  

In the brief monsoon session of Parliament, three new labour codes were bulldozed into passing and now await the President’s assent. Prime Minister Narendra Modi, on his part, has said the Code on Wages, 2019 would expand the coverage of workers in all industries in the unorganised sector as the old Minimum Wages Act covered only 30% of the total …

A Critique Of The Draft Code On Wages (Central) Rules, 2020
4 years, 7 months ago

A Critique Of The Draft Code On Wages (Central) Rules, 2020

Live Law  

The Code on Wages which was notified on 8th August 2019 consolidates the provisions of the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976. In addition to minimum wages, section 9 of the Code provides for the fixation of floor wages by the central government taking …

Labour Ministry notifies draft on minimum wages
4 years, 8 months ago

Labour Ministry notifies draft on minimum wages

The Hindu  

The Union Labour and Employment Ministry on Tuesday published the draft rules framed for the implementation of the Code on Wages Act, 2019, that guarantees minimum wages to all, defines how the wages will be calculated and prescribes a national floorwage for all States. | Cabinet approves Code on Wages Bill The draft rules published this week are similar to …

Code on wages likely to be implemented by Sept, govt circulates draft rule
4 years, 8 months ago

Code on wages likely to be implemented by Sept, govt circulates draft rule

Live Mint  

The Code on Wages, 2019, the first law under labour reforms, is likely to be implemented by September as the Ministry of Labour and Employment has put draft rules of the law in public domain for feedback, a senior official said. "The draft rules on the Code would be open for public feedback for 45 days from July 7, 2019, …

Cabinet approval for wage code bill likely next week in a bid to bring in a fresh wave of labour reforms
5 years, 9 months ago

Cabinet approval for wage code bill likely next week in a bid to bring in a fresh wave of labour reforms

Firstpost  

The bill was introduced in the Lok Sabha on 10 August 2017. New Delhi: Looking to bring in a fresh wave of labour reforms, the Labour Ministry is likely to seek Cabinet approval for the Code on Wages Bill next week as it pushes for its passage in the ongoing Parliament session, a source said. The wage code bill is …

Govt to move ahead on labour reforms with new Bill, extend Minimum Wages Act across sectors
5 years, 9 months ago

Govt to move ahead on labour reforms with new Bill, extend Minimum Wages Act across sectors

India TV News  

In what could be a significant improvement over existing wage rules, the government is likely to extend the applicability of the Minimum Wages Act to all forms of employment and workers in both the organised and the unorganised sectors. For instance, one aspect of the proposed legislation could be that while the state government concerned will fix and revise minimum …

Modi government likely to bring new bill on labour reforms
5 years, 9 months ago

Modi government likely to bring new bill on labour reforms

India TV News  

In what could be a significant improvement over existing wage rules, the government is likely to extend the applicability of the Minimum Wages Act to all forms of employment and workers in both the organised and the unorganised sectors. For instance, one aspect of the proposed legislation could be that while the state government concerned will fix and revise minimum …

Law Ministry Opposes Express Recognition Of Transgenders For Endowment Of Labour Rights
7 years, 6 months ago

Law Ministry Opposes Express Recognition Of Transgenders For Endowment Of Labour Rights

Live Law  

In a judgment that was hailed as being progressive throughout, the Supreme Court had in the case of National Legal Services Authority v. Union of India directed the Transgender community to be formally recognized as the third sex and also to avail the benefits of socially and economically Backward Communities. However, in a proposal that seems to be a step …

Govt introduces wage code bill in Lok Sabha
7 years, 7 months ago

Govt introduces wage code bill in Lok Sabha

Live Mint  

New Delhi: The government on Thursday introduced in the Lok Sabha ‘The Code on Wages’ bill which seeks to empower the Centre to fix a “universal minimum wage” aimed to benefit over 40 crore unorganised sector workers. ‘The Code on Wages’ bill to consolidate and amend the laws relating to wages and bonus was introduced in the House by labour …

Cabinet clears minimum wage code Bill, to benefit over 4 cr employees
7 years, 8 months ago

Cabinet clears minimum wage code Bill, to benefit over 4 cr employees

Firstpost  

The bill seeks to empower the Centre to set a minimum wage across all sectors in the country and states will have to maintain that. New Delhi: The Union Cabinet on Wednesday approved the new wage code bill which will ensure a minimum wage across all sectors by integrating four labour related laws. The Labour Code on Wages Bill will …

Cabinet approves minimum wage code bill by integrating four labour laws
7 years, 8 months ago

Cabinet approves minimum wage code bill by integrating four labour laws

Firstpost  

The Union Cabinet n Wednesday approved the new wage code bill which will ensure a minimum wage across all sectors by integrating four labour related laws. New Delhi: The Union Cabinet on Wednesday approved the new wage code bill which will ensure a minimum wage across all sectors by integrating four labour related laws. The Labour Code on Wages Bill …

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