As of now, all the recently passed four Labor Codes are yet to be notified for enforcement; the Rules under each Code are also yet to be framed by the State Governments. Unless the Rules are framed and notified, the Codes cannot be enforced. Therefore, in so far as the subject-matter of wages to employees is concerned, the existing laws are in force even now.
However, your presumption about the likely change in the wage/ salary structure is correct in so far as the definition of the term ' wages' u/s 2(y) of the Code on Wages, 2019 which adopts a holistic meaning covering all remuneration payable to the employee under the contract of employment but dividing it into two major segregations viz., INCLUSIVE and EXCLUDED components to be forming part of wages with certain definite proportion between the two, There is also a concurrent statutory caveat that whenever the proportion gets disturbed by a higher sum total of the excluded components, other than gratuity and retrenchment compensation, the excess shall be added to the sum total of the inclusive components viz., Basic, dearness allowance and retaining allowance, if any for the purpose of the Code.
I request you kindly to make a critical analysis of the definition on your own to understand its wider import.
About your query on the EPF subscription, as of now, the definition of the term ' wages ' under the EPF Act,1952 still holds good. The definition of the term 'wages' u/s 2(88) of the new Code on Social Security, 2020 is the same or similar to the definition of the term in the CoW,2019. Therefore, existing confusion about the calculation of the EPF subscription would be put to an end when the new Codes get enforced across the country.
From India, Salem
aaron-d-and-39-cruzThank you so much sir for your thought on this.
From India, Bengaluru
nanu1953Four Labour codes along with Central and State Rules are yet to be implemented. Definition of wages as per wage code and all other codes are same and similar. As per the new definition, the wages ( Basic & DA ) will change for all the organizations across the country. Due to to change of Basic and DA, the contribution to PF will also be change . Moreover, in the social security Code under PF clause it has been mentioned that the PF contribution will be 10 percent instead 12 percent as on date.
S K Bandyopadhyay ( WB,Howrah)
CEO-USD HR Solutions
From India, New Delhi
aaron-d-and-39-cruzThank you MR Bandyopadhyay for your thoughts.
From India, Bengaluru
consultmeAll these apprehensions are in the context of New Code on Wages. If the Covid 19 third wave is not that imminent, GOI may push for a faster implementation of this code, I guess.
Also recommend to have a look at this post that discusses the same topic. https://www.citehr.com/628918-centre...ml#post2465438
From India, Bangalore
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