Delay likely in new labour wage code; meeting on Oct 1: Sources

The new labour wage code is expected to get delayed. According to sources, there is a possible delay in implementation of new labour wage code. The Labour Ministry will hold an important meeting on Friday, 1 October, as per sources. 

It is likely that the inputs received from the states will be discussed in the meeting. The government is in a process of finalising the rules, confirmed sources. 

The government is planning to implement the Wage Code in the current financial year itself. 

What will change with the new wage code? 

Under the new code, the limit of allowances will be 50 per cent. The basic salary will be half of the total salary. The calculation of Employees Provident Fund (EPF) contribution will be done from the basic salary. The provident fund (PF) contribution will increase due to the increase in the basic salary.  

The new labour wage code proposes to increase working hours to a maximum of 12 hours. Over 15-30 minutes of extra work will be considered as overtime. The new wage code suggests overtime of not less than 30 minutes.

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It has also suggested a half an hour break after every 5 hours to the employee, and three days off in a week on duty for 12 hours.