The central government has notified four labour codes, namely, the Code on Wages, 2019, on August 8, 2019, and the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 on September 29, 2020.
If it is agreed upon that Allowances cannot be more than 50% in salary, then take home salary will be less and investment in Provident Fund (PF) will increase. The industry believes the new wage code is expected to increase the burden in the short term. Therefore, the industry should get 2-3 months to implement the new rules.
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