The long-awaited four Labour Codes may not come up before June-end
The long-awaited introduction of four Labour Codes, originally scheduled to happen at the beginning of the current fiscal year, may take at least three more months because all states have not framed rules on them.
Officials said the introduction could drag at least until the end of June.
Their implementation is expected to create investment owing to improving ease of doing business as well as initiating pro-worker measures.
“Labour is on the Concurrent List of the Constitution. As many as 23 states have framed rules on the codes. Seven states are left,”
Among the 4, the most controversial is the one on wages. One of its provisions says if all payments other than wages (basic and dearness allowances) exceed 50% of the total, then the excess will be included in wages. This means wages will need to be at least 50% of the remuneration of the employee. As a general industry-wise practice, wages do not constitute 50% of the wages of the remuneration. They are in the range of 30 to 35% because remuneration is increasingly based on performance incentives, bonuses, and other allowances.
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