India prepares to set a salary structure for WFH workers

The Indian government is reportedly in talks with businesses on setting a salary structure for workers who work from home. 

The Labour Ministry is in discussion with industry representatives on a legal framework that will suit the new work model, an official told BloombergQuint. 

Some of the suggestions ranged from a reduction in house rent allowance and new reimbursements like electricity and Wi-Fi. However, the percentage of reduction in house rent allowance has yet to be finalised, said the official.

The draft framework will then be proposed to the Finance Ministry, with any subsequent changes requiring amendment to the tax laws. 

“Union Minister Bhupender Yadav chaired the meeting where discussion on a range of issues, including enhancing employability and future skillset of the workforce, increasing productivity, and new policy on work from home were discussed,” Rajeet Goswami, an industry representative who was part of the virtual meeting told the publication. 

“Industry heads were in unison with the central government’s plans,” Goswami added.

READ: India likely to continue WFH policy into 2022

In January 2021, the government formalised work-from-home for the services sector, allowing employers and workers to mutually decide on a working arrangement best suited to their situations.