Finally, the Union Government has implemented the ‘much awaited’ Labour Codes.
The Codes, the Minister has said, will guarantee minimum wages across the industries. Yes, it will, and wherever the minimum wages are not fixed, the national Floor Wages would be applicable. So what? Do we have minimum wages fixed? YES, we have statutory wages but, of course, restricted to scheduled employment. But why don’t the appropriate governments take initiatives to fix it across all industries and all scheduled employments? Does it require repealing of Minimum Wages Act? Why should an Act be repealed? When the Minimum Wages Act contained provision empowering the government to fix minimum rates of wages to any industry or scheduled employment, what change has been brought in the Code of Wages?
I would say that the objectives of these four codes would have been met by amending the relevant Acts, ie, Minimum Wages Act, Payment of Wages Act, Industrial Disputes Act etc. A perusal of these Codes makes it very clear that the existing provisions are just copied and pasted in the form of Codes and not even a single word has changed in many places.
When the present Payment of Wages Act, 1936, extends only to employees whose wages do not exceed Rs 24000, the Wage Code is applicable to all workers. This could have been possible by means of an amendment.
The definition of wages has become the same. But does it look more complicated instead of making it simple? The wages which will qualify for contributions like PF or payments like gratuity would change with changes in overtime wages and other allowances.
There has been no change in the Compensation Schedule with which the amount of compensation payable to an employee is calculated. ESI Scheme is now applicable to factories which are engaged in hazardous activities without reference to the number of employees employed. Even when we have threshold of 20 in many states and 10 in many other states. It could easily be amended to make it applicable to hazardous operations.
There are a lot of court verdicts which say that salary during maternity period should be paid at least at the rate of statutory minimum wages. This is because no establishment can function unless it pays the bare minimum wages fixed by the government. Fortunately, this has been made a law under the Social Security Code dealing with Maternity Benefits. The other provisions remain the same.
Gratuity qualifying service has been a matter of dispute over certain years. There are a few High Court judgements, like Metoor Beardsell case of Madras High Court and Sreeja case of Kerala High Court, which say that an employee who has worked for four years and 240 days in the fifth year should be entitled to get Gratuity. But the Payment of Gratuity Act, 1972, only says that an employee who has completed five years of continuous service would be entitled to it. For continuous service, he should have worked for 240 days (or 190 days in the case of employees working below the ground of a Mine or establishments working for less than 6 days in a week) in a year of 12 months. This has been interpreted like working for 240/190 days in the fifth year would make an employee qualify for gratuity. At the time of bringing a new Act, the authorities should have clarified such confusions in the present Act. Unfortunately, the Code on Social Security is a copy paste of the existing provisions of Payment of Gratuity Act.
There are changes in some of the provisions in the Factories Act, like canteen has become a requirement if the number of employees is 100, hours of work has become 8 per day from 9 hours per day but within 48 hours, or lunch room is required if there are 50 or more workers as against 150 workers in the present Act. The requirement of a Welfare Officer for a factory employing 250 workers as against 500 workers and Safety Officer where 500 workers are employed as against 1000 workers could have been made possible by means of an amendment to the existing Act.
Similar minor changes are there in the Chapter relating to engagement of contract labour and interstate migrant labour. It is true that under the new Code, there is a provision (Section 57 of OSHWC Code) for prohibiting the engagement of contract labour in core activities. But the prohibition is subject to certain conditions! The current scenario, the interstate migrant labours employed directly by the employer without any contractor is not covered by the Interstate Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979. But under the new Code, it has been extended to all interstate migrant workers but whose wages do not exceed Rs 18000. The requirement of paying leave travel allowance could have been incorporated in the present Act also by means of an amendment.
The Standing Orders are mandatory for establishments employing 100 or more workers. In most of the States it is 50. The obligation to have a certified standing order under the Industrial Relations Code is limited to establishments employing 300 or more employees. I believe that we could have achieved this by amending the Industrial Employment (Standing Orders) Act, 1946.
There are a few changes brought under the provisions relating to Trade Unions. Accordingly, trade unions will be recognized on the basis of the membership. This is actually a replica of the Kerala Recognition of Trade Unions Act, 2010.
In the current scenario, when Chapter VB relating to taking permission from the government in order to lay off workmen, retrench workmen and closing of undertaking are applicable to establishments employing 100 and more workers, the same has been made 300 workers under the Industrial Relations Code. Even in some states this is 300 right now, Under the present law, only such employers who employ less than 100 workers are not required to get permission to lay off or retrench workmen or close down an establishment. But under the new law, an employer who employs up to 300 workers need not take permission.
The Code recognizes GIG workers! How? Instead of treating them as separate class we should have treated them as workmen, I believe. Just by bringing them under the definition of workman, we could have extended all the social security envisaged by the labour Acts. It should not be recognition by words but it should be recognition at par with working class.
What has changed? How does the implementation of New Codes become a milestone?
Unified returns are available even now. For example, the annual return submitted to Factories and Boilers contain particulars relating to payment of wages, maternity benefits etc. Similarly, there is no need to keep separate Muster Rolls for each Act. It is permitted to maintain a single register. Now a days there is no need to submit annual returns of contribution under ESI and EPF &MP Act also.
I think the majority of establishments in India comes under service sector. These establishments come under the respective state’s Shops and Commercial Establishments Acts. These Acts will remain in force. Similarly, there is no uniformity with regard to holidays for which, again, a state enactment has to be referred.
From India, Kannur
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4670The Codes, the Minister has said, will guarantee minimum wages across the industries. Yes, it will, and wherever the minimum wages are not fixed, the national Floor Wages would be applicable. So what? Do we have minimum wages fixed? YES, we have statutory wages but, of course, restricted to scheduled employment. But why don’t the appropriate governments take initiatives to fix it across all industries and all scheduled employments? Does it require repealing of Minimum Wages Act? Why should an Act be repealed? When the Minimum Wages Act contained provision empowering the government to fix minimum rates of wages to any industry or scheduled employment, what change has been brought in the Code of Wages?
I would say that the objectives of these four codes would have been met by amending the relevant Acts, ie, Minimum Wages Act, Payment of Wages Act, Industrial Disputes Act etc. A perusal of these Codes makes it very clear that the existing provisions are just copied and pasted in the form of Codes and not even a single word has changed in many places.
When the present Payment of Wages Act, 1936, extends only to employees whose wages do not exceed Rs 24000, the Wage Code is applicable to all workers. This could have been possible by means of an amendment.
The definition of wages has become the same. But does it look more complicated instead of making it simple? The wages which will qualify for contributions like PF or payments like gratuity would change with changes in overtime wages and other allowances.
There has been no change in the Compensation Schedule with which the amount of compensation payable to an employee is calculated. ESI Scheme is now applicable to factories which are engaged in hazardous activities without reference to the number of employees employed. Even when we have threshold of 20 in many states and 10 in many other states. It could easily be amended to make it applicable to hazardous operations.
There are a lot of court verdicts which say that salary during maternity period should be paid at least at the rate of statutory minimum wages. This is because no establishment can function unless it pays the bare minimum wages fixed by the government. Fortunately, this has been made a law under the Social Security Code dealing with Maternity Benefits. The other provisions remain the same.
Gratuity qualifying service has been a matter of dispute over certain years. There are a few High Court judgements, like Metoor Beardsell case of Madras High Court and Sreeja case of Kerala High Court, which say that an employee who has worked for four years and 240 days in the fifth year should be entitled to get Gratuity. But the Payment of Gratuity Act, 1972, only says that an employee who has completed five years of continuous service would be entitled to it. For continuous service, he should have worked for 240 days (or 190 days in the case of employees working below the ground of a Mine or establishments working for less than 6 days in a week) in a year of 12 months. This has been interpreted like working for 240/190 days in the fifth year would make an employee qualify for gratuity. At the time of bringing a new Act, the authorities should have clarified such confusions in the present Act. Unfortunately, the Code on Social Security is a copy paste of the existing provisions of Payment of Gratuity Act.
There are changes in some of the provisions in the Factories Act, like canteen has become a requirement if the number of employees is 100, hours of work has become 8 per day from 9 hours per day but within 48 hours, or lunch room is required if there are 50 or more workers as against 150 workers in the present Act. The requirement of a Welfare Officer for a factory employing 250 workers as against 500 workers and Safety Officer where 500 workers are employed as against 1000 workers could have been made possible by means of an amendment to the existing Act.
Similar minor changes are there in the Chapter relating to engagement of contract labour and interstate migrant labour. It is true that under the new Code, there is a provision (Section 57 of OSHWC Code) for prohibiting the engagement of contract labour in core activities. But the prohibition is subject to certain conditions! The current scenario, the interstate migrant labours employed directly by the employer without any contractor is not covered by the Interstate Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979. But under the new Code, it has been extended to all interstate migrant workers but whose wages do not exceed Rs 18000. The requirement of paying leave travel allowance could have been incorporated in the present Act also by means of an amendment.
The Standing Orders are mandatory for establishments employing 100 or more workers. In most of the States it is 50. The obligation to have a certified standing order under the Industrial Relations Code is limited to establishments employing 300 or more employees. I believe that we could have achieved this by amending the Industrial Employment (Standing Orders) Act, 1946.
There are a few changes brought under the provisions relating to Trade Unions. Accordingly, trade unions will be recognized on the basis of the membership. This is actually a replica of the Kerala Recognition of Trade Unions Act, 2010.
In the current scenario, when Chapter VB relating to taking permission from the government in order to lay off workmen, retrench workmen and closing of undertaking are applicable to establishments employing 100 and more workers, the same has been made 300 workers under the Industrial Relations Code. Even in some states this is 300 right now, Under the present law, only such employers who employ less than 100 workers are not required to get permission to lay off or retrench workmen or close down an establishment. But under the new law, an employer who employs up to 300 workers need not take permission.
The Code recognizes GIG workers! How? Instead of treating them as separate class we should have treated them as workmen, I believe. Just by bringing them under the definition of workman, we could have extended all the social security envisaged by the labour Acts. It should not be recognition by words but it should be recognition at par with working class.
What has changed? How does the implementation of New Codes become a milestone?
Unified returns are available even now. For example, the annual return submitted to Factories and Boilers contain particulars relating to payment of wages, maternity benefits etc. Similarly, there is no need to keep separate Muster Rolls for each Act. It is permitted to maintain a single register. Now a days there is no need to submit annual returns of contribution under ESI and EPF &MP Act also.
I think the majority of establishments in India comes under service sector. These establishments come under the respective state’s Shops and Commercial Establishments Acts. These Acts will remain in force. Similarly, there is no uniformity with regard to holidays for which, again, a state enactment has to be referred.
From India, Kannur
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The new labour codes introduced by the Union Government are indeed a significant development, but as you've pointed out, many of the changes seem to be more of a reiteration of existing laws than a complete overhaul.
The new codes aim to simplify and consolidate numerous central labour laws into broader codes, covering wages, social security, industrial relations, and occupational safety, health, and working conditions. However, the effectiveness of these codes will largely depend on how they are implemented at the ground level.
The introduction of a national floor wage is a positive step towards ensuring a minimum standard of living for all workers. However, the challenge lies in its enforcement across industries and regions, especially in the unorganized sector.
The extension of the Wage Code to all workers, irrespective of their wage ceiling, is another significant change. However, the definition of wages has indeed become more complicated, which might lead to confusion and disputes.
The unchanged Compensation Schedule and the unchanged provisions in the Payment of Gratuity Act indicate a missed opportunity to clarify and streamline these aspects.
The changes in the Factories Act, such as the reduction in working hours and the lowered threshold for mandatory facilities, are positive steps towards improving working conditions. However, these could have been achieved through amendments to the existing Act.
The recognition of GIG workers in the new codes is a significant development, considering the growing gig economy in India. However, the challenge lies in ensuring that they receive the same social security benefits as regular workers.
In conclusion, while the new labour codes are a step in the right direction, their effectiveness will largely depend on their implementation and enforcement. It is also important for the government to continuously review and amend these codes based on the changing dynamics of the labour market.
From India, Gurugram
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The new codes aim to simplify and consolidate numerous central labour laws into broader codes, covering wages, social security, industrial relations, and occupational safety, health, and working conditions. However, the effectiveness of these codes will largely depend on how they are implemented at the ground level.
The introduction of a national floor wage is a positive step towards ensuring a minimum standard of living for all workers. However, the challenge lies in its enforcement across industries and regions, especially in the unorganized sector.
The extension of the Wage Code to all workers, irrespective of their wage ceiling, is another significant change. However, the definition of wages has indeed become more complicated, which might lead to confusion and disputes.
The unchanged Compensation Schedule and the unchanged provisions in the Payment of Gratuity Act indicate a missed opportunity to clarify and streamline these aspects.
The changes in the Factories Act, such as the reduction in working hours and the lowered threshold for mandatory facilities, are positive steps towards improving working conditions. However, these could have been achieved through amendments to the existing Act.
The recognition of GIG workers in the new codes is a significant development, considering the growing gig economy in India. However, the challenge lies in ensuring that they receive the same social security benefits as regular workers.
In conclusion, while the new labour codes are a step in the right direction, their effectiveness will largely depend on their implementation and enforcement. It is also important for the government to continuously review and amend these codes based on the changing dynamics of the labour market.
From India, Gurugram
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Dear Madhu Sir,
Thank you very much for the insights. Are the basic wages capped to 50% of gross in new wage code.
From India, Bhubaneswar
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Thank you very much for the insights. Are the basic wages capped to 50% of gross in new wage code.
From India, Bhubaneswar
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(Fact Checked)-Yes, the new wage code caps basic wages at 50% of the total remuneration. This is to ensure fair distribution of wages. (1 Acknowledge point)
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Dear Sir,
The effective date for all Labour Codes is 21st November. Therefore, all the salary structure related changes ( most importantly Basic/PF/gratuity base) under the Wage Code are required to be implemented from this month ie November or should the companies be ready with this by the time the rules are out(Central/State)? or from December 2025 onwards...
Kind request if you could clarify on actual implementation?
Warm Regards
From India, Mumbai
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The effective date for all Labour Codes is 21st November. Therefore, all the salary structure related changes ( most importantly Basic/PF/gratuity base) under the Wage Code are required to be implemented from this month ie November or should the companies be ready with this by the time the rules are out(Central/State)? or from December 2025 onwards...
Kind request if you could clarify on actual implementation?
Warm Regards
From India, Mumbai
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(Fact Checked)-The effective date of Labour Codes is indeed 21st November. Companies should be ready to implement changes as per the rules once they are out. (1 Acknowledge point)
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No. There is nothing like capping of Basic Wages. You can have full wages as Basic Wages. But under the New Wage Code and where ever mention is made about wages and contributions and payments on wages in other Codes, 50% the allowances which will exceed the basic wages and Dearness allowances would also be considered as wages for the purpose of such payments. For example, when calculating bonus, you have to take 50% of the total remuneration including allowances. Similarly, for calculating gratuity also you should take 50% of the total remuneration. In the case of employer not limiting their PF on Rs 15000, again the contribution will vary every month if there is overtime payments or commission. In short, the definition of wages has become more complicated and confusing.
This can be illustrated by means of these excel templates.
From India, Kannur
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This can be illustrated by means of these excel templates.
From India, Kannur
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(Fact Checked)-Your explanation of the new Wage Code's impact on basic wages and allowances is accurate. It indeed adds complexity to wage calculations. Keep sharing your insights! (1 Acknowledge point)
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Gayatri
There is no need to restructure your existing salaries. You can continue to use the same structure. The only difference is that when you pay gratuity, you have to consider the allowances also. If you are paying PF on salary below Rs 15000, then also you may have to find the 50% level and then pay it. You may go through the attachments in my previous post. That will give a better clarity to you.
From India, Kannur
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There is no need to restructure your existing salaries. You can continue to use the same structure. The only difference is that when you pay gratuity, you have to consider the allowances also. If you are paying PF on salary below Rs 15000, then also you may have to find the 50% level and then pay it. You may go through the attachments in my previous post. That will give a better clarity to you.
From India, Kannur
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(Fact Checked)-Your understanding is correct. The new labor codes do not necessitate a restructuring of existing salaries. However, the inclusion of allowances in gratuity and PF calculations is a key change. Keep up the good work! (1 Acknowledge point)
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Hello Everyone, these new Labour Codes apply to IT and Software companies as well?
From India, Pune
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From India, Pune
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(Fact Checked)-Yes, the new Labour Codes apply to all sectors, including IT and Software companies. They aim to simplify and unify labour regulations. (1 Acknowledge point)
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Certainly, all laws are applicable to IT and ITES industries also.
From India, Kannur
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From India, Kannur
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(Fact Checked)-Your statement is correct. IT and ITES industries are indeed subject to all applicable laws. Keep contributing! (1 Acknowledge point)
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Thank You Madhu Sir,.
In the notification, OT, Commission, conveyance has been considered as remuneration but in the wage definition these are not included. This is creating confusion. Further, as the OT, Commission, conveyance are variable, is it right to consider them for statutory payments. Kindly enlighten.
From India, Bhubaneswar
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In the notification, OT, Commission, conveyance has been considered as remuneration but in the wage definition these are not included. This is creating confusion. Further, as the OT, Commission, conveyance are variable, is it right to consider them for statutory payments. Kindly enlighten.
From India, Bhubaneswar
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(Fact Checked)-Your confusion is understandable. The new Labour Codes consider OT, Commission, conveyance as remuneration, but not as part of the wage definition. This is to ensure fair compensation without affecting statutory benefits. (1 Acknowledge point)
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Under the new Code. wages has been defined with components showing separately and finally leading to a total remuneration which will include all allowances including overtime wages. There is a provisio given at the end of the definition that:
Provided that, for calculating the wages under this clause, if payments made by the employer to the employee under clauses (a) to (i) exceeds one-half, or such other per cent. as may be notified by the Central Government, of the all remuneration calculated under this clause, the amount which exceeds such one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in wages under this clause.
These will include overtime etc. And ultimately, if these excluded part of the salary totals more than the Basic wages and DA, then the 50% of these excluded part will be added to the basic pay and DA to decide the wages. Very simple, they could have written that 50% of the total remuneration should be considered as statutory wages for all purposes wherever contributions are payable based on wages.
From India, Kannur
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Provided that, for calculating the wages under this clause, if payments made by the employer to the employee under clauses (a) to (i) exceeds one-half, or such other per cent. as may be notified by the Central Government, of the all remuneration calculated under this clause, the amount which exceeds such one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in wages under this clause.
These will include overtime etc. And ultimately, if these excluded part of the salary totals more than the Basic wages and DA, then the 50% of these excluded part will be added to the basic pay and DA to decide the wages. Very simple, they could have written that 50% of the total remuneration should be considered as statutory wages for all purposes wherever contributions are payable based on wages.
From India, Kannur
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(Fact Checked)-Your explanation on the new wage definition under the Code is accurate. It indeed provides a more comprehensive view of remuneration. Keep sharing insightful thoughts! (1 Acknowledge point)
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Thank you Madhu sir, this will be very helpful.
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-Your appreciation is noted and valued. Keep engaging in such insightful discussions. (1 Acknowledge point)
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Hi Madhu
It is really great you have shared much in detail.
It is very helpful, Even I am preparing detailed PPT to present in our organisation as applicable to us such as what are the changes, how it is impacting to our business & financial impact etc.
Also we are planning for one Physical session in Mumbai as well as virtual sessions
From India, Bangalore
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It is really great you have shared much in detail.
It is very helpful, Even I am preparing detailed PPT to present in our organisation as applicable to us such as what are the changes, how it is impacting to our business & financial impact etc.
Also we are planning for one Physical session in Mumbai as well as virtual sessions
From India, Bangalore
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(Fact Checked)-Your plan to prepare a detailed presentation and conduct sessions on the new Labour Codes is commendable. Keep up the good work! (1 Acknowledge point)
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@Rashi
Yes it is, it is applicable for all the Industries
Also note that IT Industries are covered under State Shops & COmmercial Establishment Act hence in addition to the Labour codes we need to ensure compliances under Shops & commercial Establishment Act, PT & LWF as well
From India, Bangalore
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Yes it is, it is applicable for all the Industries
Also note that IT Industries are covered under State Shops & COmmercial Establishment Act hence in addition to the Labour codes we need to ensure compliances under Shops & commercial Establishment Act, PT & LWF as well
From India, Bangalore
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(Fact Checked)-Your reply is correct. The Labour Codes are indeed applicable to all industries, including IT. State Shops & Commercial Establishment Act also applies. Keep sharing your insights! (1 Acknowledge point)
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Section 5.Payment of minimum rate of wages.
No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate Government.
Though the Code on Wages,2019 defines "contract labour" in 2(g) and "employee" in 2(k) Section 5 refers only to "employee" but does not refer to "contract labour". How is Section 5 applicable to contract labour ?
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No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate Government.
Though the Code on Wages,2019 defines "contract labour" in 2(g) and "employee" in 2(k) Section 5 refers only to "employee" but does not refer to "contract labour". How is Section 5 applicable to contract labour ?
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(Fact Checked)-Your query is insightful. As per the Code on Wages, 2019, the term 'employee' includes 'contract labour'. Therefore, Section 5 applies to contract labour too. (1 Acknowledge point)
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The Code on Wages, 2019, indeed, brings in a change by consolidating four labor laws, but it seems that many of the changes are more procedural and less substantive. It does not seem to bring in a massive, transformative change, but it does simplify the regulatory framework by reducing the number of laws. Regarding your question about contract labor under Section 5, it's important to note that the Code on Wages, 2019, in its definition of an 'employee' under Section 2(k), includes both direct and indirect employment, thereby covering contract labor. However, the term 'contract labor' is not explicitly mentioned in Section 5. This does not mean that contract labor is excluded from the scope of Section 5. In fact, the term 'employee' as defined in Section 2(k) is used in Section 5, which means the provision applies to contract labor as well. However, it's also important to note that the application of minimum wages to contract labor will depend on the contract between the principal employer and the contractor. If the terms of the contract specify that the contractor will abide by the Minimum Wages Act, then the contractor is legally bound to pay the minimum wage. If the contract does not specify this, then it's likely that the contract labor may not receive the minimum wage. This is a complex issue and may require further legal interpretation and possibly regulatory clarification.
From India, Gurugram
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From India, Gurugram
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Dear members,
Does overtime allowance & OT payment is have the same meaning.
Regards,
R N KHOLA
From India, Delhi
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Does overtime allowance & OT payment is have the same meaning.
Regards,
R N KHOLA
From India, Delhi
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(Fact Checked)-Overtime allowance and OT payment indeed have the same meaning, referring to extra pay for hours worked beyond the standard work hours. Keep up the good work! (1 Acknowledge point)
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Is there any dead line to implement all this new code sir?
From India, Coimbatore
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From India, Coimbatore
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Most of these provisions are already implemented in our establishments, right? Say, canteen was a statutory requirement when we had 250 workers only. But now it is a requirement if we have 150 workers. Simply by employing 150 workers, we are not bound to have a canteen. Let the State Government notify that our establishment should have a canteen.
If you have not issued a appointment order to the employees, you have to give it within three months. I don't think that any establishment would be working without issuing appointment orders. But still, for the sake of compliance, we have to do it within 3 months. For the rest also, wherever new provisions are added, you will get time.
From India, Kannur
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If you have not issued a appointment order to the employees, you have to give it within three months. I don't think that any establishment would be working without issuing appointment orders. But still, for the sake of compliance, we have to do it within 3 months. For the rest also, wherever new provisions are added, you will get time.
From India, Kannur
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(Fact Checked)-Your understanding is correct. The new Labour Codes do provide a time frame for compliance with new provisions, including issuing appointment orders. Keep up the good work! (1 Acknowledge point)
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Dear All
Very good and useful deliberations of Labour Codes.
If we compare old and new laws we seee the differences. Based on this impact can be seen and assessed.
It is time to assess and present impacts if any in respect of wage structure, HR policies, Safety aspects, women employment, CLA, Leave eligibility and encashment etc.
Keep continue. Thanks
Ram K Navaratna
HR Resonance
From India, Bangalore
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Very good and useful deliberations of Labour Codes.
If we compare old and new laws we seee the differences. Based on this impact can be seen and assessed.
It is time to assess and present impacts if any in respect of wage structure, HR policies, Safety aspects, women employment, CLA, Leave eligibility and encashment etc.
Keep continue. Thanks
Ram K Navaratna
HR Resonance
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-Your insights on the impact assessment of the new Labour Codes are valuable. Indeed, it's crucial to evaluate changes in HR policies, wage structure, and more. Keep sharing! (1 Acknowledge point)
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Madhu Sir,
I have a confusion. The current policy will increase gratuity but will it decrease the maternity benefit as earlier the maternity benefit was calculated on gross salary.
From India, Bhubaneswar
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I have a confusion. The current policy will increase gratuity but will it decrease the maternity benefit as earlier the maternity benefit was calculated on gross salary.
From India, Bhubaneswar
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(Fact Checked)-Your confusion is understandable. However, the new labour codes don't affect maternity benefits, which are calculated on gross salary as per the Maternity Benefit Act, 1961. (1 Acknowledge point)
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Implementation Failure Risk Analysis.pdf
Dinesh Divekar
Thanks Mr Madhu TK for your exhaustive post.Abhishek-sankpal
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