In a major relaxation for salaried employees, the Centre on Wednesday announced that the new wage code affecting take-home salary, which was expected to reduce from April 1, will remain the same until a further decision is taken in the matter. The government has deferred the decision due to pending changes in the labour codes of some states.
Senior government officials attributed the decision to the ongoing elections in the four states, as well as states not coming out with their own rules on the codes.
Should states delay, the Centre may notify its own rules by June. Labour is a concurrent subject and in case of clash between the central laws and state laws, it is the former which prevails, clarified the official.
The draft rules on wage code talk about keeping the basic pay at 50 per cent or more of an employee’s total pay. A worker’s take-home salary may be reduced as the safety net contribution towards an employee’s provident fund will increase.
Source: Business Standard
