4 day work week to sweeping changes to PF norms; a new labour code likely from next year

If you are looking to work only four days a week and possibly add more to your savings via a PF account then the new labour code may have all that you wish for. PTI reports that the Centre is looking to implement four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions from the fiscal year starting April 1.

The Centre has finalised the rules under these codes in February 2021. Since labour is a concurrent subject, states are expected to frame regulations on their part after which the changes would be introduced.

According to a senior government official, at least 13 states have pre-published draft rules on these laws.

Here is what you can expect in the new labour code-

4 day work-week: The new regulation will give the flexibility to chose how to complete a 48 hour work-week cycle, so people could opt to work for 12 hours and have 3 days off in the week

PF norms change: Reports indicate that higher payout from employees to PF will lead to lesser in-hand/take-home salary.

Calculation of PF: Half of the salary would be basic wages and allowances would be restricted to 50 per cent to increase PF payout as per reports quoting sources

Also Read | Now you don’t have to transfer your PF; here’s what EPFO Board decision said