Earned leaves of employees could soon increase from 240 to 300, as the Modi government aims to implement the new Labor Code in the next three to five months. The code was earlier expected to come into effect from April 1, 2021. However, the Code was delayed due to the unpreparedness of the state governments. Previously, the Ministry of Labor, industry stakeholders, and other parties have met to discuss the Labor Code regarding working hours, annual holidays, pension, PF, take-home salary, and retirement, among other things.
In January last year, Bharatiya Mazdoor Sangh (BMS) had urged that the government should increase the cap on earned leaves from 240 days to 300 days. Other unions have also requested a similar hike.
Meanwhile, several trade unions have requested the government to make separate rules for building and other construction workers such as beedi workers, journalists, and those associated with the entertainment sector.
New labor laws
The Indian Parliament had passed the new labor reforms in September 2020. The Centre is aiming to bring the laws into effect as soon as possible. One such law makes it mandatory that employees’ basic salary should be 50% of the total salary. Also
If the rules come into effect, it will result in small changes related to PF deductions and you take home salary. Your gratuity will also increase as part of the new law.