New Wage Code: <\/strong>Delhi: Despite the second wave of the Corona pandemic, many employers have raised employee salaries. If you believe that increasing your salary has resulted in an increase in your take-home pay, there is good news for you. Actually, your happiness isn’t going to last very long. In fact, after the new Wage Code is implemented, your take-home pay may decrease while your tax burden increases.<\/p>\n\n\n\n

Allowances will need to be reduced.<\/strong><\/p>\n\n\n\n

An employee’s cost-to-company (CTC) is made up of three to four components. Basic income, HRA, retirement benefits such as PF, gratuity, and pension, and tax-saving allowances such as LTA and amusement allowance In the new wage legislation, allowances are no longer allowed to exceed 50% of the entire income. If an employee’s monthly income is Rs 50,000, consider the following scenario. So his basic income should be Rs 25,000, with the extra Rs 25,000 going to his allowances.<\/p>\n\n\n\n

That is, organizations that previously kept the basic wage at 25-30% and supplemented it with allowances can no longer retain the basic income below 50%. In such a case, businesses will be forced to reduce various allowances in order to comply with the new pay code’s standards.<\/p>\n\n\n\n

Read More: <\/strong>Customers of SBI, take note! Less amount in the account will be costly; if an ATM transaction fails, a penalty will be levied; prevent this situation<\/strong><\/a><\/p>