Lawstreet Journal

Home-Pay, PF Outgo, Salary Structure Remain Same for Now as the New Wage Code gets deferred

Lawstreet Journal 1 Apr 2021 11:40pm

Image courtesy: Lawstreet Journal Executive Home-Pay, PF Outgo, Salary Structure Remain Same for Now as the New Wage Code gets deferred

The new salary rules in India were supposed to come into effect by April 1, 2021, however, they have been deferred. It is alleged that the New Wage Code will bring major changes to the existing salary structures for both Private as well as Government jobs. 

HR Professionals and staffing companies have also claimed the same. As per the current scenario, the basic pay component is significantly lower than 50% for an overwhelming number of employees. 

Along with this three other codes were supposed to be implemented from April 1, namely, the code on occupational safety, health and working conditions, the social security code and the code on industrial relations. 

This has been seen as a breather by the industry experts on law, recruitment and compensation. A lot of efforts have been made by these experts in order to bring 50% of the gross pay under the basic pay umbrella apart from other changes under the New Wage Code.

The delay in the implementation helps these experts with extra time to rework these employee compensation structures. Clarity has been awaited on a few points in the New Wage Code, such as on the components pertaining to inclusion or exclusion from the basic pay as per the Compensation Expert Aon. 

The Coming Restructuring

A lot of changes will be brought in the India Inc after the government notifies the implementation of this New Wage Code. 

These rules were passed by the Parliament last year. Changes in the provident fund, take-home salary and pay slips will be observed after… Continue Reading...

Tagged: Salary  
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