New Delhi: 7th Pay Commission: After the implementation of the new wage code bill (new wage code) from April 1, 2021, the salary of government and private sector employees may increase. Monthly Provident Fund (PF) and gratuity contributions will also change from 1 April. Because the government has provided that the basic salary of the employee should be 50% of his monthly CTC.
This is how your salary structure will change
This means that the new Pay Code Bill will come into force from April 1, 2021, then your basic salary will be 50 percent or more of your total salary, that is, your allowance will not be more than 50 percent of your salary. Its clear effect will be on your monthly salary which comes in your hand, ie your Take Home Salary will be reduced. But the contribution of PF and gratuity will increase due to which you will have more money in the long term.
On 8 February, Labor and Employment Secretary Apoorva Chandra told that the ministry will implement the four codes very soon. He said that all the concerned parties were talked to while making these rules.
Ministry of Labor will implement these four codes
1. Code on Wages
2. Industrial Relations
3. Occupational Safety
4. Health and Working Conditions and Social Security Codes
Let us tell you that the government has not yet announced the date for implementing the new wedge code, but it is believed that it will be implemented from April 1, 2021.
DA hike to be announced soon
It is expected that the Central Government may soon announce an increase in Dearness Allowance (DA) for its employees. The Finance Ministry has already said that DA will be announced keeping in view the pension or basic salary of central employees. DA and DR (Dearness Relief) currently cost Rs 12,510 crore annually, but after the increase it is expected to reach Rs 14,595 crore annually.
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On the other hand, in his budget speech, Finance Minister Nirmala Sitharaman had said that LTC has been kept under the purview of tax exemption in view of the Corona crisis. The government feels that this will bring more money in the hands of government employees. Economy will also benefit from this.
