New Wage Code: Industry stakeholders agree to cap allowances at 50% - details

New Wage Code: At a crucial meeting of the Union Labour Ministry on Monday, industry stakeholders agreed to implement the new Wage Code with 50 percent allowances in the salary. The stakeholders have also asked the government to issue clear guidelines regarding exemptions. At the same time, the stakeholders said that the list of exemptions should not be open-ended.

Apart from this, the stakeholders also requested the government to increase the gratuity provisions. Besides, the stakeholders have also sought a two-month time to implement the new rules from the date of the notification.

Other issues like the participation of women workforce also figured during yesterday's meeting. The government wants to increase the participation of women. It wants 50% of the total workforce to be women.

The Labor Ministry has also asked the industry to use e-shram portal data to create new jobs.

The industry stakeholders also submitted some recommendations related to EPFO ​​and ESIC to the government. They made a presentation on its preparedness for the implementation of the 4 labor laws in the meeting of the Ministry of Labor.

The Ministry of Labor will now discuss the new laws with the states as part of the exercise to build consensus on new labor laws across the country.