New labour rules & change in work hours likely to be introduced from 1 Oct

Aug 24: The Union Government is expected to implement some changes in the labour laws of the country from October 1. This new rule states that the employees working hours are going to be increased from 9 hours to 12 hours in the new labour law. Along with this, the in-hand salary will also likely to see a change after the new rule is implemented.

As per the new draft of the Labour Law, the basic pay of an employee is to increase by 50 per cent of the total salary while the non-perks side of the salary will be less than 50 per cent of the total salary. Similarly, other changes will take place in an employees’ CTC accordingly. The increase in basic salary will further increase the PF which is based on basic pay. An increase in the basic pay will increase the PF, which means that there will be a cut in the take-home or hand-to-hand pay.

In the new draft law, a proposal has been proposed to increase the maximum working hours to 12. The draft rules of the OSCH Code provide for extra work between 15 and 30 minutes to be counted as overtime for 30 minutes. Under the current rule, less than 30 minutes are not considered eligible overtime.

The draft rules have prohibited any employee to work continuously for more than 5 hours and it also included instructions to give half-an-hour rest to the employees after every five hours.