New Wage Code Update - Rightsofemployees.com https://www.rightsofemployees.com Know Your Rights Tue, 05 Jul 2022 04:38:02 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://www.rightsofemployees.com/wp-content/uploads/2018/01/cropped-emp1-32x32.png New Wage Code Update - Rightsofemployees.com https://www.rightsofemployees.com 32 32 New Wage Code Update: Your salary structure will change after the implementation of New Wage Code, see details here https://www.rightsofemployees.com/new-wage-code-update-your-salary-structure-will-change-after-the-implementation-of-new-wage-code-see-details-here/ Tue, 05 Jul 2022 05:25:06 +0000 https://www.rightsofemployees.com/?p=973 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 […]

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]]> 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 

Due to the increase in Basic Pay, the PF of the employees will be deducted more, then their take-home salary will decrease. But, their future will be more secure. This will give more benefit on their retirement, as their contribution to Provident Fund (PF) and Monthly Gratuity will increase.

It will be difficult for companies 

Let us tell you that the CTC of the employees depends on many factors. Like Basic Salary, House Rent (HRA), PF, Gratuity, LTC and Entertainment Allowance etc. With the implementation of the new wage code rule, companies will have to decide that the other factors to be included in the CTC except basic salary should not exceed 50 percent. This can increase the headache of companies. 

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