New Delhi: As millions of salaried individuals are eagerly waiting for Finance Minister Nirmala Sitharaman’s Union Budget 2021 announcement, 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. A couple of months ago, the government notified draft rules under Code on Wages 2019, following which take-home pay of employees may be reduced from next financial year ie, April 2021 because the draft rule required companies to restructure their salary break up. The draft rules mention that employees’ allowance component cannot exceed 50 percent of the total pay package, resulting which, companies or employers will have to allocate 50 percent of the salary to basic salary component. This also means that there will be a consequent rise in gratuity and PF contribution of the employee. Hence, while the take home pay of the employees may be reduced, the Gratuity and PF component may rise. In a related news, the Union Ministry of Labour and Employment had on November 13 notified the draft rules under the Code on Social Security, 2020 inviting suggestions from the stakeholders within a period of 45 days… Read full this story
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7th Pay Commission latest update: Here's why your take-home pay may reduce from April 2021 but Gratuity, PF component may rise have 299 words, post on zeenews.india.com at January 31, 2021. This is cached page on Travel Breaking News. If you want remove this page, please contact us.