The highlights look like this :
1) Minimum Floor Wage is being relooked at. Every State
as of now has its own figure but nothing across the country. The MFW was not a
mandate earlier which is why it was left to State and Employer to settle but
under the new law will be prescribed.
2) UNIVERSAL SOCIAL SECURITY
This is a concept India never had but will have starting next fiscal year. It aims to protect the health and welfare of workers / labour especially, who do not have dependable resources now. The proposal as of now talks of charging employer 1% of wages and have this is a corpus to provide Healthcare and aide to the workers under ESIC. This also means number of government run / municipal run hospitals will increase in India in the coming days. We will possibly need 4 times the number of facilities we have now to really have coverage. But that growth will be slow over a decade. It also suggests more need for Gov Doctors, nurses, path labs, insurers, doctors etc
3) 4 Day a week being proposed where the hours at work stay untouched at 48 hours a week but employers can consider 12 HOUR day x 4 days giving 3 paid leaves a week. India aims to provide option to those who need to attend to raising children and other pressing demands of Continuous Education or being Care Giver etc. Very progressive. This is an option. Not a mandate. Companies considering it will need to sign agreement between Employee & Employer
4) Capping allowances at 50% of wages will apply. This may not affect those on smaller salary but will be a difference to higher income groups. Companies today reduce Base Pay giving more allowance to reduce PF, Paid leaves & Gratuity payable but with this new law the earnings of employees will grow. Not sure if all in the higher income bracket see this as much "needed" change especially if they are wiser with investment & wealth creation.
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