On the above subject matter, is it a confirmed news that this wage rule will be effective from 1st April 2021. Any thoughts on what the India Inc will be doing since this will increase the costs. Appreciate any input.
Yes you are right our take home salary will reduce due to code of wages. Restructuring the salary will increase the impact on social securities which is good.
PF , Gratuity and Statutory Bonus will have huge impact on it.
Waiting for others to share their ideas on it.
I was wondering if there is any clarity on the PF basic being restricted to Rs. 15000/-.
Once the new wage rules come in place will the employer still be able to restrict PF basic to Rs. 15000/-?
Under new wage rule, would the Employer’s minimum PF contribution of 12% of Rs. 15,000 be still applicable or there is any change in the rule?
Hi Shefali and Vallari,
There are many points which are not clear under The new code of wages. About your queries will soon reply .
As of now there are no changes in these. Except the major rule saying Basic should be 50% for sure.
So as @Arpana said we may have to wait and see.
But it’s better to start your work on restructuring employees salary components and keep it ready.
I don’t think so they will make changes in this at this moment @VallariD.
But not sure, suddenly it might trigger too. But for now I suggest let’s create a rough salary structure and keep it ready as per the new rule, rather than last minute huddle.
I am also looking for inputs on this subject along with reference documents / links.
We are also looking for the updates on new wage code from 1st Apr 21.
We will definitely give you an update shortly in the form of Expert Series Sessions as well as bring in an expert to answer all your queries.