INSUBCONTINENT EXCLUSIVE:
Implementation of labour codes are deferred as states have not yet finalised rulesThe four labour codes will not come into effect from April
1 as states are yet to finalise the relevant rules, which means that there will be no change in take-home pay of employees and provident
fund liability of companies for now
Once the wages code comes into force, there will be significant changes in the way basic pay and provident fund of employees are calculated
- working conditions from April 1, 2021
The ministry had even finalised the rules under the four codes."Since the states have not finalised the rules under four codes, the
According to the source, few states had circulated the draft rules
Constitution of India, both the Centre and the states would have to notify rules under the codes to bring those into force in their
Under the new wages code, allowances are capped at 50 per cent
This means half of the gross pay of an employee would be basic wages
Provident fund contribution is calculated as a percentage of baisc wage, which includes basic pay and dearness allowance.The employers have
The new wages code provides for provident fund contribution as a prescribed proportion of 50 per cent of gross pay.In case the new codes had
come into effect from April 1, the take home pay of employees and provident fund liability of employers would have increased in many cases
