New Wage Code: A new wage code can be implemented by the government from July 1 across the country.
New Wage Code: The government is preparing to implement the new wage code from next month i.e. July 1. The change in the wage code from July 1 will have the biggest impact on the employees of the private sector. If you also do a private job, then this news is of your use.
After the implementation of the new wage code, the in hand salary of the employees will be reduced. But your retirement benefit will increase.
Preparation to be implemented from July 1 With the implementation
New labor code, you will have both advantages and disadvantages. According to the news, the New Wage Code 2019 is set to be implemented from July 1. For example, the CTC of an employee consists of basic salary, HRA, retirement benefits like PF and gratuity and other allowances.
The Basic Salary Will Be 50 Percent Of The CTC
In the existing structure, the basic salary ranges from 30 to 40 percent of the employee's salary. Apart from this, there is pension allowance, HRA, PF etc. On this basis PF is deducted from your salary. But now according to the new structure, the basic salary should be 50 percent of the CTC.
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This will have a direct impact on your PF and Gratuity. Apart from this, it will be mandatory to work 48 hours a week under the new wage code. If you work for 12-12 hours every day, then there is a provision of giving you 3 weeks off by the institute.
Understand The New Rule Like This
For example if your CTC is 50 thousand, then your basic will be 15 thousand rupees now. According to this, your PF becomes Rs 1800 per month (12% of the basic). But according to the new rule, on CTC of 50 thousand, your basic will increase from 15 thousand to 25 thousand rupees.
On this, your PF contribution will increase to Rs 3000 at the rate of 12 percent. That is, you will now get Rs 1200 less per month than before.
The Increase In Basic Salary:
An effect on both your PF and gratuity. Increase in the contribution in both these items will reduce the take home salary. But you will get its benefit at the time of retirement.