India’s labor ministry discuss WFH salary changes
India’s Labor Ministry is in talks with private and public companies on a proposal seeking to change the salary structure of remote employees.
In an interview with BloombergQuint, a ministry official said that the discussions are prioritizing the legal framework best suited for the new work model.
Some of the changes being raised include reduction in house rent allowance and introduction of reimbursements such as electricity and WiFi.
Industry representative Rajeet Goswami said that “industry heads were in unison with the central government’s plans.”
In a letter addressed to the Prime Minister, the Confederation of All India Traders wrote that the remote work model “needs concrete and structured rules and policies in order to run smoothly.”
Further, consultancy firm Deloitte India’s pre-Budget expectation 2022 report recommends an additional Rs 50,000 (US$670) allowance for WFH employees as they are likely to incur additional expenditures.
The draft framework will be proposed to the Finance Ministry. Any changes will require amendments to the tax laws.
