The Center has suspended the implementation of the Labor Code from 1 April; Home pay, PF liability unchanged

A government source told PTI, “A state source told PTI,” Since the states have not finalized the rules under the four codes, the law has been suspended for the time being. ”

New Delhi: These four labor codes will not take effect from April 1 because the states have not yet finalized the relevant rules, meaning there will be no change in the wages of workers ‘families and the companies’ provident fund liabilities from now on.

Once the pay code comes into force, there will be significant changes in the way employees calculate their basic pay and future funds.

The Ministry of Labor planned to implement four codes on industrial relations, wages, social security and occupational health protection and working conditions from 1 April 2021.

The Ministry has finalized the rules under four codes.

“The implementation of these laws has been suspended for the time being as the states have not finalized the rules under the four codes,” a source was quoted as saying. PTI.

According to sources, several states have implemented the draft rules. These states include Uttar Pradesh, Bihar, Madhya Pradesh, Haryana and Uttarakhand.

As labor is subject to the Constitution of India, both the Center and the States need to be informed of the provisions of the Code for application in their respective jurisdictions.

The allowance under the new pay code is 50 per cent cash. This would mean half the base salary of an employee.

Provident fund contributions are calculated as a percentage of basic pay, which includes basic pay and allowances.

Employers are splitting wages too much to reduce provident funds and income tax income.

The new pay code provides for a provident fund contribution of 50 per cent of the total salary.

After the new code goes into effect on April 1, in many cases the liability for employees ‘domestic salaries and future employers’ financing will increase.

Now employers have more time to restructure the salaries of their employees under the new pay code.

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