The Central Government is planning to bring in the New-Wage Code, which will most likely be implemented in October of this year. Many changes have been made under this bill regarding holidays, salary and working hours of the employees.
Employees' work hours will be increased by 9 to 12 hours under the New-Wage Code. The norm of 48 hours of labour per week will apply, according to the Ministry of Labor and Employment. The norm of 12 hours of work and three days off has been questioned by several unions. Later, the government announced that under the 48-hour workweek regulation, if an employee works for 8 hours, they will be given one week off, and if an employee works 12 hours a day, they will be required to offer leave for the remaining three days.
Employees' wage structures will be altered, and their take-home pay will be decreased. According to the Wage Code Act of 2019, an employee's base wage cannot be less than 50% of the company's cost (CTC). Many firms are currently reducing basic salaries and providing greater allowances than previously. The good news is that employees will be able to take more leaves under the new wage code. The leaves will be increased to 300 from 240.