7th Pay Commission latest update –As opposed to previous reports that your take home pay will take a hit from April 1 owing to the implementation of the new wage code, a financial daily has reported that the latter has been now deferred.
A senior official said that the decision to implement the new wage code has been deferred, meaning which, employees salary structure will have a status-quo. It was previously reported in the media that the government’s notification on Code on Wages 2019 may reduce the take-home pay of employees next financial year ie, April 2021 while components like PF and Gratuity might rise.
This is based on the grounds that the new wage code mentions provision entailing that the employee’s basic salary will be at least 50 percent of his/her net monthly CTC. Hence, if this provision comes into effect, it will mean that employees will not be able to get more than 50 percent of his/her net monthly salary in form of allowance.
This ministry was also purportedly in works to bring into force the four Codes, viz., Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions (OSH) and Social Security Codes…Read more>>