50% limit under Labour Code: India Inc wants cap on allowances relaxed

India Inc has asked the government to relax the cap on the allowance component of wages from the proposed 50% under the Labour Code, saying that it would financially hit companies. The industry associations have also reached out to top industrial states seeking relaxation even from the state governments in the above provisions for establishments under their domain. Industry is keen that the cap be relaxed to 60% from 50% and gratuity norms,