New Wage Code Alert! Earned Leaves for employees likely to be increased, know key updates

Reported By:DNA Web Team| Edited By: DNA Web Team |Source: DNA webdesk |Updated: Apr 22, 2022, 01:15 PM IST

All working-class people in India can expect some good news soon from the Centre as the new wage code is expected to bring a lot of positive changes in the working rights of an employee. The most anticipated and expected change is going to be related to the Earned Leaves.

It is expected that the Ministry of Labour and Employment will issue the new wage code for employees from July 1, 2022. As per media reports, as many as 23 out of a total of 28 states have prepared and sent in their drafts to the Centre.

The most significant change can be implemented in the amount of Earned Leaves. It is expected that the number of leaves for employees will increase as per the new wage code. As of now, government employees get 30 earned leaves in one year.

Meanwhile, defence employees get 60 earned leaves in one year. In totality, 300 leaves can be carried forwards and encashed by the employees. As per the latest update, the Labour Union has demanded an increase in the number of holidays from 300 to 450.

It must be noted that different departments give around 240 to 300 earned leaves to employees. These leaves can only be encashed after the employee has completed 20 years in the organization.

As per reports, a new labour law could be implemented under the New-Wage Code that can cause a change in your salary structure, especially your take-home salary. Currently, the government is making changes to the wage code regarding things like working hours, overtime, and break time. 

The government had prepared four wage codes by combining 29 labour laws – Code on Wedges, Industrial Relations Code, Occupational Safety and Health (OSH) and Social Security Code. In 2019 August, changes were made to three of the labour codes – industrial relations, safety of work, health and working conditions and social security.

READ | Here’s what government said on gratuity

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