There is a lot of discussion about PF Calculator New Wage Code: Cost to Company (CTC). According to the media report, a new Wage Code will come from 1 April 2021. Labor Ministry has prepared it.
There is a lot of discussion about PF Calculator New Wage Code: Cost to Company (CTC). According to the media report, a new Wage Code will come from 1 April 2021. Labor Ministry has prepared it. If this happens, it will completely change the take home salary, PF and Gratuity of private workers. The biggest feature of this code is that the cash in hand salary of private jobbers will decrease, but old age will become more secure. According to experts, if the monthly salary decreases, then the PF will be cut more. This will give a big fund after retirement. Gratuity will also increase with this.
Understand here Salary Calculation
New Wage code PF Benefits: If monthly salary is 50 thousand rupees and basic pay will be 15 thousand rupees. Then the amount of PF on retirement will be Rs 7,14,53,72.
Salary (CTC) calculation: Earning Rs 40,000 or Rs 30,000 as DA+Basic? You may get this extra amount
At the same time, the basic salary in the new Wage Code will be 25 thousand rupees a month. Then on retirement the amount of PF will be Rs 1,19,08,953. Here annual increments have been taken at 5 percent, which will further increase the PF fund.
What is Cost to Company
New Wage code benefits: The cost incurred by a company on its employees is CTC. This is the complete salary package of the employee. CTC includes monthly basic pay, allowances, reimbursements. On the annual basis, gratuity, annual variable pay, annual bonus etc. are included. The amount of CTC is never equal to the employee’s take home salary. CTC has many components so it is different. CTC = gross salary + PF + gratuity
Basic salary
PF Calculator New Wage Code: Basic salary is the base income of an employee. This fix is based on the level of all employees. It is according to the position of the employee and the industry in which he is working.
Gross salary
PF Calculator New Wage Code: Gross salary is the salary that is added to basic salary and allowances without cutting taxes. This includes bonuses, overtime pay, holiday pay and other item allowances.
Gross Salary = Basic Salary + HRA + Other Allowances
Comfortable with your liquidity situation? Opt for higher EPF contribution
Net salary
Net salary is also known as take home salary. The salary that is generated after tax is deducted is called net income.
Net Salary = Basic Salary + HRA + Allowances – Income Tax – EPF – Professional Tax
Allowances
PF Calculator online: The company makes allowances to the employee in lieu of job. This can vary from company to company.
HRA: House rent allowance is given in lieu of house on rent.
LTA: LTA is the expenses incurred on domestic travel to the employee. This does not include food, hotel rent.
Conveyance Allowance: Convenience allowance is given to an employee in lieu of expenses incurred on going home from office.
Dearness allowance: DA is a living allowance. It is given in lieu of inflation. Its eligible government employees and pensioners are there.
Other allowances include special allowance, medical allowance and incentives or incentives.
Reimbursement
PF Calculator New Wage Code: According to experts, in many companies there is a provision to reimburse the employee for treatment, phone expenses, news bills. This amount is different from salary. But only on paying the bill. Under the Income Tax Act, every reimbursement is exempt to a limit.
