Government employees were waiting for increase in dearness allowance for quite some time now. There is no new update on the matter but government has another big surprise for them. Modi government is planning to implement labour law reforms by April 1, 2022 which will get 300 earned leaves to public sector employees.
Earlier, government employees used to get over 240 earned leaves but under new labour law reforms government has increased the same to 300. The discussions on the current changes are currently going on among the officials of the Ministry of Labour, Labour Union and Industry. The current issues that are talk of conversations are annual holidays, working hours, PF, pension, retirement and take home salary.
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Currently, a total of 29 central labour laws have been divided into 4 codes. The four labour codes are social security, wages, industrial relations and occupation safety and health and working conditions. Till now over 13 states have developed draft laws and centre has passed four codes in the Parliament. But centre also needs that state governments also notify these codes. The rules were to get implemented last year in April but it got postponed because of lack of response from states.
The new laws will lead to increase in working hours from 9 hours to 12 hours and in hand salary will also get affected. Under the wages code, the allowances that can be taken by any employee will be capped at 50% of the salary by which monthly pay will get calculated as basic wage.
Currently, provident fund is calculated on the basis of basic wage which consists of basic pay and dearness allowance. Increase in basic pay of an employee will lead to increase in PF deductions hence the in hand salary will get reduced.
