All You Need To Know About India’s New Labour Codes: 4-Day Work Week, Reduction In Take-Home Salary, And More

I’m going to say it; I’m one of the lucky few who have works five days a week. Yes, I have my weekend off and I have never been more grateful for anything else. I mean, who doesn’t like getting two full days to yourself? But then there are days, especially on Fridays when the lethargicness sets in and I wish I could have Fridays off as well. Greedy, I know. But I guess my wish might just come true. How? Well, India is very much likely to implement new labour codes on wages from the next fiscal year beginning in 2022. Under the new codes, a lot of things are said to change, like having a four-day workweek rather than 5-days and there will be a significant reduction in the take-home salary of employees. Not sure if the new labour codes are a good thing.

India’s new labour codes will bring along a lot of changes with regards to employment, work culture, take-home salary, working hours, and the number of workdays. If the new codes are implemented from the fiscal year beginning in 2022 then it is very much likely that employees will be able to enjoy a four-day workweek instead of the current five-day workweek.

Also Read: TikTok Video Shows Woman In Labour Texting Boss From Hospital Bed. This Hustle Work Culture Is So Toxic!

Having said that, the downside of the new labour code will mean that the employees will have to work for 12 hours on those four days since the labour ministry has made it clear that if this code is passed, even then the 48-hour weekly work requirement will have to be met.

Another downside to India’s new labour code is that once the new codes are implemented then the take-home salary of the employees will reduce significantly and organisations will have to bear a higher provident fund liability. That means a major change is going to happen in the way employees calculate their basic pay and the provident fund (PF). As of the current regulations, the employer’s percentage-based contribution to the PF balance is dependent on the employee’s basic pay and dearness allowance (DA) but all of that will change when the new labour codes are implemented.

Also Read: Supreme Court To Observe The Calculation Of Notional Income Of Homemakers Based On Their ‘Work, Labour And Sacrifices’

As per reports, the central government of India has finalised the rules that come under the four labour codes and has asked states to frame regulations accordingly on their part. Speaking about the new labour codes, a senior government official said, “The four labour codes are likely to be implemented in the next financial year of 2022-23 as a large number of states have finalised draft rules on these… The Centre has completed the process of finalising the draft rules on these codes in February 2021. But since labour is a concurrent subject, the Centre wants the states to implement these as well in one go.” The official further added that 13 states already have pre-published draft rules based on the new codes. 

I really don’t understand how the new labour codes are going to help with the hustle culture and my major concern is that this is going to have a negative impact on the mental health of employees. I know I wanted a 4-day workweek but not by working for 12hrs!

Spanx CEO Sara Blakely Gives Each Of Her Employee ₹7.5 Lakh And Two First-Class Flight Tickets!