Reports indicate that the government may aim to introduce the four labour codes from April 1, to coincide with the new financial year. In our company, the salary structure is primarily based on allowances. If the definition of 'wage' changes, it could lead to alterations in PF and gratuity costs. There are also inquiries about new rules for contractors, registers, and inspections. The major concern is the possibility of having to redesign the pay structure, only for the rules to change again. Another worry is the risk of inaction, which could lead to repercussions in April.
We considered waiting for the final notification, but our leadership team wants a plan to be put in place within this month. What are the secure measures you are currently implementing, even if the dates change? And what payroll modifications are you holding off on until the final rules are released?
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We considered waiting for the final notification, but our leadership team wants a plan to be put in place within this month. What are the secure measures you are currently implementing, even if the dates change? And what payroll modifications are you holding off on until the final rules are released?
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The potential changes in labour codes indeed pose a significant challenge, especially when the salary structure in your company is primarily based on allowances. The redefinition of 'wage' could indeed alter PF and gratuity costs, and the new rules for contractors, registers, and inspections could necessitate significant changes in your current practices.
Legally, it's crucial to stay updated with the changes in the labour codes. The Ministry of Labour & Employment is the primary source for such updates. You can follow their notifications and circulars to stay informed.
The first step in your action plan should be to conduct a thorough review of your current salary structure and identify the areas that would be most affected by the changes. This will give you a clear picture of the potential impact and help you prepare for the changes.
Next, consider seeking legal advice or consulting with an HR expert who is well-versed in labour laws. They can provide guidance on how to navigate the changes and ensure compliance.
While waiting for the final rules, it's advisable to start preparing for potential changes. This could include redesigning the pay structure, updating the payroll system, and training your HR team to handle the new rules. However, any major changes, such as modifying the payroll, should be held off until the final rules are released.
Finally, it's important to communicate with your employees about the potential changes. Transparency can help alleviate concerns and ensure that everyone is on the same page.
In conclusion, while the potential changes in labour codes may seem daunting, with proper planning and preparation, you can ensure a smooth transition. Stay informed, seek expert advice, prepare for changes, and communicate with your team.
From India, Gurugram
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147Legally, it's crucial to stay updated with the changes in the labour codes. The Ministry of Labour & Employment is the primary source for such updates. You can follow their notifications and circulars to stay informed.
The first step in your action plan should be to conduct a thorough review of your current salary structure and identify the areas that would be most affected by the changes. This will give you a clear picture of the potential impact and help you prepare for the changes.
Next, consider seeking legal advice or consulting with an HR expert who is well-versed in labour laws. They can provide guidance on how to navigate the changes and ensure compliance.
While waiting for the final rules, it's advisable to start preparing for potential changes. This could include redesigning the pay structure, updating the payroll system, and training your HR team to handle the new rules. However, any major changes, such as modifying the payroll, should be held off until the final rules are released.
Finally, it's important to communicate with your employees about the potential changes. Transparency can help alleviate concerns and ensure that everyone is on the same page.
In conclusion, while the potential changes in labour codes may seem daunting, with proper planning and preparation, you can ensure a smooth transition. Stay informed, seek expert advice, prepare for changes, and communicate with your team.
From India, Gurugram
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Definition of Wages is same in all labour codes and it has nothing to do with Rules. Wages includes Basic, DA and RA plus the items in exclusion list from a to i and 50 percent of that. Allowances will fall under a to i. Obviously the wages will increase and accordingly PF, Gratuity, Bonus etc. will increase. All organisations may think to restructure their existing remuneration structure with less impact on existing CTC. It needs in depth study and proper implications.
S K Bandyopadhyay ( WB, Howrah)
98310 81531
skb@usdhrs.in
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S K Bandyopadhyay ( WB, Howrah)
98310 81531
skb@usdhrs.in
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Creating a Competitive Salary Structure.doc
SALIENT FEATURES ON ALL LABOUR CODES - TELUGU VERSION.pdf
Salary Structure.zip
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(Fact Checked)-Your understanding of the new labor codes and their impact on wages is accurate. It's indeed crucial to prepare for these changes. Keep up the good work! (1 Acknowledge point)