The central government is reportedly making some changes to labor law that could be implemented as early as next month. These new laws could be a relief for a large number of employees in India. There have been reports of the implementation of a 4 day work week in India. In addition to this, the value of the Provident Fund in the salary of employees could also increase.
Employees in India may soon be enjoying three-day weekends
Reports say new labor laws in India could take effect on July 1, 2022, although no official announcement has yet been released. Depending on the changes, the net salary of employees will also change. There will also be changes in the working hours of the offices. Now, most companies give their employees a week or two of vacation. With the implementation of the 4-day work week, employees can enjoy three weeks of vacation.
The basic salary will be 50% of the gross amount
Although the labor law has reduced the number of days, it should be noted that the working hours do not change. Thus, in the four working days, the working hours might vary from 10 to 12 hours. Coming to the salary part, the new laws state that the basic salary will be 50% of the gross amount. The PF contribution from the gross salary will thus increase. The gratuity fund value will also see a hike.