The Four Labour Codes: Impact on your balance sheet
How the shift in 'Wage' definition will change your liability for PF and Gratuity.
The 50% Rule
The new codes mandate that 'Wages' for statutory purposes must be at least 50% of the total remuneration. For many companies, this means a significant hike in PF and Gratuity liabilities.
Full and Final settlement timelines
Settlements must now be completed within 2 working days of termination. This requires an extremely agile payroll and exit workflow.
Social security for gig workers
For the first time, gig and platform workers are brought under the social security net. If you use contract labour, your costs will likely increase by 1-2%.
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