In an astounding relaxation for the salaried employees, the new wage code that would have affected the take-home salary from April 1 has been delayed for a while by the Centre. The delay in this salary structure 2021 has been a sigh of relief for India Inc. as many companies will now have ample time to rework the salary structure of their employees.

The government has decided to not implement the labour codes from 1st April 2021. Although a source has mentioned that the implementation of labour codes will take place, just not from April as the government hasn’t finalized the rules yet.

A senior ministry official quoted that- “implementation of labour codes looks unlikely from April 1. The government wants at least some industrial states to notify rules across four labour codes along with the Centre to avoid any legal void”.  Along with this, three more codes- industrial relations, social security, and occupational safety have also been deferred until further notice.

Also read – New Labour Code May Include 4-Day Workweek with Longer Shifts

In regards to the salary structure 2021, the report further stated that the labour of ministry has put together the rules on four codes and the same will be notified once a few states have prepared with rules in their territory.

As of yet, only Jammu & Kashmir has notified their rules while other states like Bihar, Madhya Pradesh, Uttarakhand, and Uttar Pradesh have drafted rules for two codes, and Karnataka has drafted one.

A notable thing that is worth mentioning is that back in 2019 the parliament had approved the code on wages and other significant codes such as the social security code, the code on industrial relations. Additionally, the code on occupational safety, health, and working conditions was approved in September 2020.

The government has amalgamated 29 labour codes into 4 major ones, to ease up the way of conducting business and reduce the compliance burden. The new codes also target to simplify recruiting and firing of employees to give the employers more flexibility in terms of working hours.

The apt definition of ‘wages’ under the new salary structure 2021 is an all-inclusive contrast and includes various remuneration, apart from certain ones like overtime allowance, house rent allowance, statutory bonus, employer contribution to pension/provident fund, etc.

In the case of these exclusion exceeding 50% of total wages, the extra amount will be added to the wages.

 

Sources – India.com, Times Now

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