Govt wants India Inc to overhaul salaries, proposes higher basic income

While some trade union leaders have welcomed the move, industry has opposed it, fearing an increase in its wage bill

The Centre is planning to reform labour laws to ensure employers do not keep basic income low in order to reduce contributions towards social security schemes.

The proposal to make basic income a major component of salary could lead to a decline in the take-home pay of workers as contributions towards provident fund, insurance and gratuity may rise alongside a higher tax outgo.

The government has proposed that salaries should be structured in such a way that allowances for house rent, leave travel and overtime, among others, are capped at 50 per cent of the basic pay. Whatever employers offer