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Labour codes : Companies’ PF liability to go up, workers’ take-home pay to shrink

The labour ministry had envisaged implementing the four codes on industrial relations, wages, social security and occupational health safety & working conditions from April 1, 2021. These four labour codes will rationalise 44 central labour laws.

The ministry had even finalised the rules under the four codes. But these could not be implemented because many states were not in a position to notify rules under these codes in their jurisdiction.

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States begin easing COVID lockdowns as case numbers decline

The national capital territory of Delhi, the seat of India’s federal government, was among those relaxing restrictions and will allow shops to open on alternate days. Shops with even numbers will open on one day while those with odd numbers will open the next day. Private offices will also now be allowed to operate at 50% of normal staffing levels.

In the industrialised western state of Maharashtra, the local government will from June 7 allow malls, movie theatres, restaurants and offices to open regularly in districts where the positivity rate has fallen below 5%.

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Economy hit by COVID-19 second wave to start recovering from July, says Chief Economic Advisor

Commenting on the stock market situation in the country, he said that the stock market is at a record high as investors believe that the Indian economy will do well.

The CEA said that the prediction of good economic growth and investment by developed nations in the Indian stock market has led the market to a record high. 

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China’s new three-child policy draws scepticism, cost questions

James Liang, a professor at Peking University’s School of Economics and founder of online travel giant Trip.com Group, last month urged China to give parents of each newborn 1 million yuan to lift a fertility rate of just 1.3 children per woman in 2020. That rate is in line with countries such as Japan and Italy and far short of the 2.1 replacement rate.

He said this week that China would need to spend about 5% of GDP, compared with “practically 0% now”, in cash, tax breaks, housing subsidies, daycare, and other incentives to get the fertility rate up to about 1.6, and expects the government soon to step up building day-care centers and kindergartens. Developed counties typically spend 1% to 4% of GDP on such support, he said.

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Covid-19 claims cost life reinsurers billions

The biggest costs for life reinsurers came from the US and to a lesser extent the UK and Canada but claims from other countries including South Africa and in Latin America added to the costs. Life reinsurers only have limited exposure to India.
BI estimates Swiss Re accounted for around 35% of claims followed by Reinsurance Group of America on 27% but the decline in deaths should mean much lower claims for the second half of the year.

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