New Wage Code 2022 Implementation: New Wage Code can be implemented soon for the employees. After its implementation, everything from the salary of the employees to the pension is sure to be affected. Many such provisions have been made in this which is important for you to know.
Actually, it is being claimed in many media reports that the new wage code will be applicable from July 1, but till now no such announcement has been made by the government officially. And the biggest thing is whenever a policy is implemented, its notification is issued at least 15 days in advance. Therefore, there is no question of its implementation from 1st July. But it can be implemented soon. Let us know that after its implementation, who will be in profit and who will be in loss?
What is in the new wage code?
According to the Wage Code Act, 2019, the basic salary of an employee cannot be less than 50% of the cost of the company (CTC). At present, many companies reduce the basic salary and give more allowances from above so that the burden on the company is reduced. Let us know about its provisions.
Salary structure will change completely
With the implementation of the Wage Code Act, 2019, the salary structure of the employees will change completely. Employees’ (Take Home Salary) will decrease, because by increasing Basic Pay, employees’ PF will be deducted more, that is, their future will be more secure. Contribution to PF as well as Gratuity will increase. That is, take home salary will definitely decrease but The employee will get more amount on retirement.
Take home salary will decrease, retirement will improve