IT employees must get salary by 7th of every month
What's the story
In a significant step to boost financial stability and reduce workplace stress, the Indian government has implemented new labor codes. The regulations affect the IT and ITES sectors, requiring companies to pay employees by the seventh of each month. These measures are designed to ensure timely salary payments and foster greater trust between employers and workers.
Code details
New labor codes promote equal pay and women's participation
The new labor codes also emphasize 'equal pay for equal work' in the IT sector, while promoting women's participation in the workforce. Companies are now required to provide facilities for women employees to work night shifts, giving them more opportunities to earn higher wages. The codes also call for timely resolution of harassment, discrimination, and wage-related disputes in workplaces.
Employee benefits
New codes ensure social security benefits for fixed-term employees
The new labor codes also guarantee social security benefits for fixed-term employees and mandatory appointment letters. This is a major step toward ensuring that all workers get their due entitlements, including PF, ESIC, insurance, and other social security benefits. The changes are part of India's efforts to modernize its labor laws and bring them in line with global standards.
Compliance simplification
Simplifying compliance and promote ease of doing business
The new labor codes also aim to simplify compliance and promote 'Ease of Doing Business.' Prime Minister Narendra Modi called the move one of the most comprehensive and progressive labor-oriented reforms since Independence. He said it greatly empowers workers while significantly simplifying compliance. The four new codes are: Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety Health & Working Conditions Code, 2020.