Labour Codes: 12 hours of working from Oct 1, hike in basic salary

Any extra work that takes 15 to 30 minutes to complete will be regarded as overtime of 30 minutes and have to be compensated accordingly

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Time for the workforce to brace for the new labour law. While the working hours have been increased from 9 to 12, the good news is that any extra work that takes the employees 15 to 30 minutes will be considered as overtime of 30 minutes. The basic salary will comprise at least 50 per cent of the total salary, but the non-perks portion of the salary will be less than 50 per cent of the total salary.

Another benefit that comes with the increase in basic is that the Provident Fund (PF) of workers will be more, leading to lesser pay in hand. That means, workers will have more in their kitty post retirement. The gratuity of employees will also go up. Increased PF and gratuity amounts will mean increased cost to company. Employers will need to contribute more towards the PF of employees. Those with high salaries will witness the most changes in pay structure and face maximum impact.

Currently, 30 minutes or less of extra work is not considered as overtime. However, henceforth, any extra work that takes between 15 to 30 minutes will have to be compensated for as overtime of half an hour. Also, no employees should be made to work for five hours at a stretch, without a break. It is mandated that employees be given a 30-minute break after every five hours.

The implementation of the new labour codes was delayed because of the uncertainties brought about by the pandemic, and because many states failed to finalise their rules under the Code of Wages 2019. This gave employers time to realign the compensation structure of the employees.

14 COMMENTS

  1. What about the people working in private organisation for endless years on contract with renewal every year without any break in service deprived of both graturity and provident fund..I’m talking of a big hospital and the employee is a Doctor..Any rules and regulations for such institutions.12and half years on contract with no PF and graturity…is it ok according to labor laws.

    • really painful,
      in india, most respectful professions like Doctors and Engineers also working as contract employees and deprived of all benefits eligible as per law.
      The managements are taking the advantage of need of employment. in Hyderabad. The qualified engineers are working in HYd for Rs. 8000/- per month without any benefits which is lower than the minimum wages notified by the Governments for unskilled workers.

  2. What about the contract employees working without any break fr more than 12 years in an institution and deprived of PF and graturity.

  3. This Laws only for benefit of Govt and Companies Owner. Now Govt have no money , they are destroy all property and mony of old Govt and now try to collect from workers. If PF amount is increased then govt could collect more money from PF department to use and Companies Owner will more benefit to get extra work from a workers. This law is only for Govt. And Companies Owner benefit. Nothing benefit for any workers. Worker will be bound for extra duty.

  4. Till payment s re being made through contractors the contract employees will not be benefitted. Therefore the rules be amended in such a way that employees should get their wages directly through department

  5. What about people who don’t have anyone in their life and are all alone with no nominee or dependant.
    Now govt is like …think of future and let you present be destroyed with less in hand Salary…
    My god atleast be practical in some cases .. we are humans and only if we have a good salary in hand then we can survive and then only we can save for future…
    What’s the use of PF and gratuity for the person who is died because he/ she was not able to live because of lack of money or something that is unexpected…

  6. Surprised there is no mention of those who work 12 hours a day work, can avail 3 days off and 9 hours a day work will continue to have 2 days off..

  7. 9 hours to 12 hours is Hight for worker. It is law for industrialist by Government. Now Government showing his original color. Government only favour industrialist.

  8. If they increase to 12 hours will also provide 2 days off? Working 72 hours a week it’s insane, will be more than the Japanese ( and they have 2 days off) I don’t see the reason or solutions to make the best country to live in the world, maybe will need to wait and see how really it’s the draft of this new law.

    Give people 2 days off and you will boost your economy, more people will be willing to come to Dubai.
    Create working laws like Japan.

  9. Private Employers actually intentionally depriving their employees by keeping low basic salary. Ad per this bill basic will increase and at the time of retirement Employees will be benefited for their rest of life. Hence this bill should be implemented asap. But we think the present .Central Givt always support Industrial lobby / Employer only not Employees.

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