July 1: What a change in life and pockets from today

‘Khush Hai Zamana Aaj Paheli Tarikh Hai …’ This song was heard on ‘Radio Ceylon’ on the first date of every month.

New labor law

The first date of each month is special. It is special because the new month starts, the salary is received, there is a desire to spend, some new things come and some desires are fulfilled.

But this time July 1 is important because a lot of things are changing. Which will probably affect your life and pocket. It would be good if you knew about it and were prepared for it.

The biggest change could come in the lives of employed people if the new labor law is implemented. There is a strong possibility that the new law could take effect on July 1. But if that happens then the biggest impact could be on job seekers.

The new Labor Law has so far been met with skepticism and complaints from the private sector that the country is not ready for it. It is up to the state governments to enforce the labor law. More than half of the states have approved it.

If this law is implemented, there will be a big change in the way people pay and work hours. Especially people who do private jobs.

The new labor law will allow companies to increase working hours to 12 hours but not more than 48 hours a week.

That means those who work 12 hours a day will get three days off a week.

Not only that, the Factory Act has so far provided no more than 50 hours of overtime from workers in three months. However, the new labor law proposes to increase it to 125 hours.

The biggest change will be in the case of wages. Under the new law, it will be mandatory for any employee to have a basic salary or half of the gross salary. This means that PF will also be deducted more and more will be deposited.

It may also have the effect that people working in private offices will get less money after tax, PF deductions but more money will be deposited in their provident fund. Which will only work for them later. Not only this, the amount of gratuity received after retirement will also increase.

Holidays that are full of complexity are neither fun nor comfortable. Until now, ‘leave’ was given only after working 240 days, but according to the new labor law, this leave can be given after 180 days.

No change has been made in the calculation of holidays. As before, one day off will be credited after working every 21 days.

Changes in taxes

Apart from labor laws, some major changes will also be seen in taxes. The fee for linking PAN and Aadhaar was Rs 500 till June 30. Who will now have to pay Rs 1,000 to get the work done from July 1.

If you have not yet KYCed your demat or trading account, you will not be able to trade or make a new investment from July 1 and will not be able to sell any shares in your account. This rule will also apply to mutual fund accounts.

A 30 per cent tax on cryptocurrency revenue was announced in the budget, but from July 1, the government will impose a one per cent TDS on every transaction in cryptocurrency or virtual digital assets.

The advantages and disadvantages will not be taken into account. Anyone who buys cryptocurrency will have to pay one per cent of the amount paid to the government.

A major change in income tax rules will be for doctors and social media influencers. These people will be charged 10 per cent TDS if they earn more than Rs 20,000 a year as a sales promotion like companies.

At a time when interest rates are rising, the government had hoped to raise interest rates on PPFs and small savings schemes, but a disappointing statement has come. The government has decided not to change small savings and PPF interest rates for the ninth consecutive time.