Friends, PFA 3 Labour Codes introduced in Lok Sabha today: 1. Occupational Safety, Health & Working Conditions Code 2020 2. Industrial Relations Code 2020 3. Code on Social Security 2020 Thanks
From India, Malappuram
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1446From India, Malappuram
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I think the Codes notified are yet to become the effective law though have been notified in the gazette at the introduction stage. Am I correct sir.?
From India, Bangalore
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From India, Bangalore
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Dear All, PFA is the latest on Labour Codes by Press Information Bureau.
From India, Mumbai
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From India, Mumbai
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Dear All, The bills introduced and passed in Lok Sabha are attached herewith for your information, reading and discussing it on this forum.
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From India, Mumbai
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All three Codes have been passed by Parliament. Lok Sabha passed these Codes yesterday, whereas Rajya Sabha has passed the same today. Now they will be sent to the President for assent and then notified in the Gazette.
From India, Malappuram
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Formation of Rules may take more time as Rules on Code on Wages are still not published and implementation is delayed.
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From India, Pune
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Dear All,
The three bills, i.e., Occupational Safety, Health and Working Conditions Code 2020, Industrial Relations Code 2020, and Social Security Code 2020, were passed in the Upper House today by voice vote amid a boycott by the opposition over the suspension of eight members. They will now go to the President for his assent.
This is for your information, please.
Thank you.
From India, Mumbai
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The three bills, i.e., Occupational Safety, Health and Working Conditions Code 2020, Industrial Relations Code 2020, and Social Security Code 2020, were passed in the Upper House today by voice vote amid a boycott by the opposition over the suspension of eight members. They will now go to the President for his assent.
This is for your information, please.
Thank you.
From India, Mumbai
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Dear All, Lok Sabha passes 3 Historic and path-breaking Labour Codes. Forwarding the same for your reference. Suresh
From India, Thane
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From India, Thane
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Friends, PFA summary of 3 Bills as passed by Parliament. Thanks
From India, Malappuram
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From India, Malappuram
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Hello Knowledge, Can anyone throw some light on definition of wages ? Particularly about retaining allowances. Does special allowances is included in wages ?
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The definition of wages under the Labour Codes includes special allowances. Special allowances are considered part of wages as per the Codes. (1 Acknowledge point)
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Dear Rohan ji,
Now we have to concern with the definition of Wages as defined in Code on Wages, 2019 even though the Code on Wages, 2019 is not enforced yet.
According to Section 2 (y) of the Code on Wages, 2019 the definition of Wages is given verbatim below for your ready reference and reading:
"wages" means all remuneration whether by way of salaries, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes,—
(i) basic pay;
(ii) dearness allowance; and
(iii) retaining allowance, if any,
but does not include––
(a) any bonus payable under any law for the time being in force, which does not form part of the remuneration payable under the terms of employment;
(b) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the appropriate Government;
(c) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
(d) any conveyance allowance or the value of any travelling concession;
(e) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment;
(f) house rent allowance;
(g) remuneration payable under any award or settlement between the parties or order of a court or Tribunal;
(h) any overtime allowance;
(i) any commission payable to the employee;
(j) any gratuity payable on the termination of employment;
(k) any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment made to him on the termination of employment:
Provided that, for calculating the wages under this clause, if payments made by the employer to the employee under clauses (a) to (i) exceeds one-half, or such other per cent. as may be notified by the Central Government, of the all remuneration calculated under this clause, the amount which exceeds such one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in wages under this clause:
Provided further that for the purpose of equal wages to all genders and for the purpose of payment of wages, the emoluments specified in clauses (d), (f), (g) and (h) shall be taken for computation of wage.
Explanation.––Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages of such employee.
Answer to your questions:
Retaining allowance is very much included in Wages.
Special allowances are not included in Wages.
Please don't mix up the term special allowance, what is considered presently in Maharashtra as Dearness Allowance with the definition of Wages under the new Law.
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Now we have to concern with the definition of Wages as defined in Code on Wages, 2019 even though the Code on Wages, 2019 is not enforced yet.
According to Section 2 (y) of the Code on Wages, 2019 the definition of Wages is given verbatim below for your ready reference and reading:
"wages" means all remuneration whether by way of salaries, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes,—
(i) basic pay;
(ii) dearness allowance; and
(iii) retaining allowance, if any,
but does not include––
(a) any bonus payable under any law for the time being in force, which does not form part of the remuneration payable under the terms of employment;
(b) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the appropriate Government;
(c) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
(d) any conveyance allowance or the value of any travelling concession;
(e) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment;
(f) house rent allowance;
(g) remuneration payable under any award or settlement between the parties or order of a court or Tribunal;
(h) any overtime allowance;
(i) any commission payable to the employee;
(j) any gratuity payable on the termination of employment;
(k) any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment made to him on the termination of employment:
Provided that, for calculating the wages under this clause, if payments made by the employer to the employee under clauses (a) to (i) exceeds one-half, or such other per cent. as may be notified by the Central Government, of the all remuneration calculated under this clause, the amount which exceeds such one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in wages under this clause:
Provided further that for the purpose of equal wages to all genders and for the purpose of payment of wages, the emoluments specified in clauses (d), (f), (g) and (h) shall be taken for computation of wage.
Explanation.––Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages of such employee.
Answer to your questions:
Retaining allowance is very much included in Wages.
Special allowances are not included in Wages.
Please don't mix up the term special allowance, what is considered presently in Maharashtra as Dearness Allowance with the definition of Wages under the new Law.
From India, Mumbai
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(Fact Checked)-The user's reply is mostly correct based on the definition of wages under the Code on Wages, 2019. Retaining allowance is included in wages, while special allowances are not. The explanation provided aligns with the law. (1 Acknowledge point)
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Pl find attached PPT on 3 Labour Codes as passed. Thanks
From India, Malappuram
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Dear Mr. Akhil Bhartiya,
With reference to the details provided by you, I have a query. In the paragraph titled "Explanation" - 3rd line - Is it 15% that needs to be changed to 50%?
For example, if a salary is structured as Basic+DA 10000 + HRA 5000 + Other Allowances 5000 = Gross. Additionally, we pay overtime (OT) amounting to approximately Rs. 10,000 for a month.
1) Should the OT be paid based on the Gross amount or Basic+DA?
2) According to the code of wages, since HRA/Allowances/OT exceed 50% of Basic+DA; should these then be considered as part of Basic+DA/Wages?
Warm Regards,
Deena Jagasia
From India, Mumbai
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With reference to the details provided by you, I have a query. In the paragraph titled "Explanation" - 3rd line - Is it 15% that needs to be changed to 50%?
For example, if a salary is structured as Basic+DA 10000 + HRA 5000 + Other Allowances 5000 = Gross. Additionally, we pay overtime (OT) amounting to approximately Rs. 10,000 for a month.
1) Should the OT be paid based on the Gross amount or Basic+DA?
2) According to the code of wages, since HRA/Allowances/OT exceed 50% of Basic+DA; should these then be considered as part of Basic+DA/Wages?
Warm Regards,
Deena Jagasia
From India, Mumbai
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Dear Deena Jagasia ji,
Your quote: "Explanation" - 3rd line - Is it 15%? is to be 50%?
My say: It is 15%. This explanation pertains to remuneration in kind. If the remuneration in kind exceeds 15%, it will be deemed as wages.
Your quote: Further eg if a salary is structured as Basic+DA 10000 +HRA 5000 + Other Allowances 5000 = Gross
My say: In this example, the salary is Rs. 10000 (I am not touching here the MW rate). Payment other than salary (as stated in clauses (a) to (i)) is Rs. 10000.
Payment other than salary exceeding one-half, i.e., exceeding 5000, shall be treated as salary.
Your quote: Plus we pay OT for a month approx Rs.10,000.
1) Should the OT be paid at Gross or Basic+DA?
2) As per the code of wages - since HRA/Allowa/OT is more than 50% of Basic+DA; will these then be accounted within Basic+DA/Wages?
My say: OT is included in the item stated in clauses (a) to (i). You cannot exceed (a) to (i) Rs. 5000. There is also a limit on overtime hours under the FA as well in the Shop Act.
Overtime rate is twice the normal rate of wages. Please read the definition of wages.
I wanted to make your quotes bold/italic. But I do not know how to do it on this forum. Can anybody let me know this?
From India, Mumbai
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Your quote: "Explanation" - 3rd line - Is it 15%? is to be 50%?
My say: It is 15%. This explanation pertains to remuneration in kind. If the remuneration in kind exceeds 15%, it will be deemed as wages.
Your quote: Further eg if a salary is structured as Basic+DA 10000 +HRA 5000 + Other Allowances 5000 = Gross
My say: In this example, the salary is Rs. 10000 (I am not touching here the MW rate). Payment other than salary (as stated in clauses (a) to (i)) is Rs. 10000.
Payment other than salary exceeding one-half, i.e., exceeding 5000, shall be treated as salary.
Your quote: Plus we pay OT for a month approx Rs.10,000.
1) Should the OT be paid at Gross or Basic+DA?
2) As per the code of wages - since HRA/Allowa/OT is more than 50% of Basic+DA; will these then be accounted within Basic+DA/Wages?
My say: OT is included in the item stated in clauses (a) to (i). You cannot exceed (a) to (i) Rs. 5000. There is also a limit on overtime hours under the FA as well in the Shop Act.
Overtime rate is twice the normal rate of wages. Please read the definition of wages.
I wanted to make your quotes bold/italic. But I do not know how to do it on this forum. Can anybody let me know this?
From India, Mumbai
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All three codes have been assented to by the President. Please find attached the Gazetted Notifications dated 29.09.2020 for the respective codes for your information.
It is important to note that all four codes, including the Code on Wages, are now the law of our country. However, detailed rules under these codes are yet to be published. Subsequently, these codes will acquire effective power through separate notifications.
From India, Mumbai
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It is important to note that all four codes, including the Code on Wages, are now the law of our country. However, detailed rules under these codes are yet to be published. Subsequently, these codes will acquire effective power through separate notifications.
From India, Mumbai
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(Fact Checked)-[The information provided in the user reply is accurate regarding the assent of the President for the three Labour Codes and the status of becoming the Law of the Country. However, the part about the detailed rules being yet to be published and effective power is slightly unclear.] (1 Acknowledge point)
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What is the current status of the Codes, is it notified by the Central Government??
From India, Pune
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From India, Pune
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(Fact Checked)-The Codes have not been notified by the Central Government yet. They are still in the legislative process. (1 Acknowledge point)
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Draft-Labour-Co de-on-Industria l-Relations-Bil l-2015 (1).pdf
CiteHR.AI
(Fact Checked)-The Codes mentioned have been introduced in Lok Sabha, but they are not yet effective as laws. You are correct in noting they are at the introduction stage. (1 Acknowledge point)