New Labor Rule: The new labor code introduced by the central government offers considerable support to employees with children. The government is currently developing a plan to establish crèche facilities for the children of employees. However, the new labor code stipulates that employees without access to crèche facilities will receive a monthly compensation of Rs 500.
In fact, many families have both parents working, which makes it challenging to care for their children. To tackle this issue, the government is planning to implement crèche facilities.
Every employee in various companies and institutions will have the chance to benefit from this new regulation. The aim of the Crèche Allowance is to ensure adequate child care. Under this new rule, a minimum of ₹500 will be allocated each month for every child. The primary beneficiaries of this initiative are expected to be widowed women or single parents.
What does the crèche allowance rule entail?
As per Rule 37(Viii)(b) of the new Labor Code, if a female employee is a widow or a single parent with children under the age of 6, the company will provide crèche facilities for their children. The government has explicitly stated that each child will receive a monthly allowance of Rs 500. Reports suggest that the central government may adjust this amount in the future.
It is important to note that if an employee or laborer has two children, they will still qualify for this allowance. If a woman gives birth to twins on her second occasion, and the total number of children exceeds two, she will still be eligible for the benefits of this new rule.
For which companies will this rule apply?
These rules have been implemented under the Occupational Safety, Health and Working Conditions (OSHWC) Central Rules 2026. These are applicable in sectors like railways, oil sector, air transport services, telecom sector, mines, banks and insurance companies. According to experts, this rule has been made for both central and state government employees. This rule will provide significant relief to parent employees.
48 hours of work per week
There has been a special rule change for employees who do not get paid on a daily basis. They will now have to work a maximum of 12 hours in a day and 48 hours in a week. This means that work will be only for 4 days a week. The remaining 3 days will be holidays.
Basic salary rule
The basic salary will be at least 50% of the total CTC. This will increase PF and gratuity. Due to this change, the in-hand salary of many employees may decrease.
New gratuity rule
Fixed-term employees will also receive gratuity. However, they will now be given gratuity only after completing one year of service. Regular employees will receive gratuity only after 5 years.
