The central government may implement the four labour laws in a couple of months, which will reduce the take-salary of employees and higher provident fund liabilities of companies.
After the implementation of the new wage code, the method for the calculation of the basic salary and provident fund will significantly be changed.
The four codes were envisaged by the labour ministry for implementation on industrial relations, wages, social security, and occupational health safety & working conditions from April 1, 2021. These four labour codes will rationalize the 44 labor laws.
”Many major states have not finalised the rules under four codes. Some states are in the process of finalising rules for the implementation of these laws. The central government cannot wait forever for states to firm up rules under these codes. Therefore it is planning to implement these codes in a couple of months as some time would have to be given to establishments or firms to align with new laws,” a source was quoted as telling PTI.