India’s New Labour Code Draft: 4-Day Work Week, 12-Hour Shift, High PF | Know What Can Change In FY 2022-23

At least 13 states have drafted rules on the new codes, and 24 states and UTs have drafted rules on at least one code, the new labour codes might be implemented in the upcoming fiscal year 2022.

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New Delhi: The central and the state governments are likely to implement the new labour laws in the fiscal year 2022. According to a PTI report, Union Labour Minister Bhupendra Yadav told in Rajya Sabha during the winter session of parliament that at least 13 states have pre-published the draft rules for the new labour codes. 

The new labour codes notified by the central government – the code of wages, industrial relations code, the code on social security, and the occupational safety and health and working conditions code – were supposed to be implemented in April 2021. However, since labour is a concurrent subject, the states were given time to draft their own rules.

Now, as at least 13 states have drafted rules on the new codes, and 24 states and UTs have drafted rules on at least one code, the new labour codes might be implemented in the upcoming fiscal year 2022.

What Changes In The Current Code?

As per the new code, the workweek may be reduced to four days, however, the working hours in a week would remain the same. As per the experts, this would mean a 12-hour working day that would translate into the current 48-hour working week. 

The other change that is proposed in the new code is that the basic wages and the allowances would be restricted at 50 per cent of the CTC (cost-to-company) which would mean that the in-hand salary of the employees would be reduced. However, the Provident fund taken by the employees will increase, hiking the employer’s contribution to it. 

Which Other Countries Have Less Than a 45-Hour Work Week?

According to a 24/7 Wall Street Report, as many as 30 countries have a less than 45 hours work week. The latest to be added to the list of countries with reduced working hours is UAE.  

From January 1, 2022, The United Arab Emirates will be implementing the 4.5 day work week. In the upcoming year, the working hours for employees in UAE will be 7:30 AM to 3:30 PM from Monday to Thursday, and 7:30 AM to 12 Noon on Friday.