Wage code-Employee Provident Fund (EPF) contribution is rs 1800 or different?

Hi all,

As per wage code will PF threshold will be rs1800 p.m? if changing what would be the new amount?

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Employees’ minimum basic pay will have to be 50% of their CTC after the new Wage Code is implemented. With increased proportion of basic salary in the overall remuneration package, the employer contribution to various retirement schemes like EPF/NPS (National Pension Scheme) will go up in monetary term.

This can be taken as an example:

Before Wage Code An employee receiving a monthly salary of Rs 20,000 with minimum pay of Rs 8000. The employee’s PF contribution in this situation will be 12% of basic salary, or Rs 960.
After Wage Code Bill An employee receiving a monthly salary of Rs 20,000 with minimum pay of Rs 10,000. The employee’s PF contribution in this situation will be 12% of basic salary, or Rs 1,200.

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