No Change in Salary Structure Govt Defers New Wage Code take home Salary will remain the same
New Delhi: The New Wage Code, which came into force on April 1, 2021, has not yet been implemented. This has brought great relief to the employees as well as the companies. According to Labor Ministry officials, the new wage code has been delayed for some time. This will not change the salary structure of the employees from April 1, 2021. Therefore, there will be no reduction in Take-Home Salary.
EPFO board member Virjesh Upadhyay said the new decision will not be implemented until a new notification is issued by the government. It is difficult to implement the new pay regulations from April 1. The wage code has been under discussion for the past few days. The new code was to take effect on April 1. According to experts, there are difficulties in enforcing this wage code as it contains some ATs.
What is New Wage Code
According to the Wage Code Act, 2019, companies are required to pay 50 per cent of the cost to the company (CTC) as basic and 50 per cent allowance. The new rules will have no effect on employees whose 50 per cent of their total salary is already basic. For those whose basic salary is 30 to 40 per cent of the total amount, the salary will be deducted.
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Salary structure will change
After the implementation of the Wage Code Act, 2019, the salary structure of the employees will be completely changed. Take Home Salary will be reduced. Because with the increase in Basic Pay, their PF will be cut more. So it’s going to be good for the future. Also, along with PF, monthly gratuity will also increase.
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