New Wage Code Ready
When will the New Wage Code i.e. new labour laws come into force?
October 1, 2022, hopefully, the central government can implement it and make it a reality instead of paper.
This is very important for you, me and millions of employees.
What is going to happen in your life with the new wage code?
Salary will change, holidays will increase, shift time will be more and much more. The main focus is on salary.
What are the benefits you will get in New Wage Code?
Your Provident Fund share will be higher after the implementation of the New Wage Code. Meaning more money will be deposited in it.
If there is more investment, then the tax savings will also be more.
However, if you deposit more than Rs 2.50 lakh in the Provident Fund in a financial year, the interest earned on the amount above that will be taxable.
Impact On Bank Loan
Very few people know that while applying for a loan, the bank does not see your in-hand salary but your basic salary.
In such a situation, by increasing the basic salary, your chances of getting a loan will also increase.
The higher the basic salary, the more chances of getting a loan in easy instalments.
What happens when you change jobs
People often ask your CTC after leaving the job. But, whenever the HR of the new company talks about your salary, he also prepares the complete structure on the basis of basic salary.
If the focus of the new company goes to your basic salary, then you will get a new hike on the increased basic salary.
Provident Fund (EPF)
Provident Fund (EPF) is deducted from the salary, its calculation is done on the basic salary. 12% of the basic salary goes to EPF.
The same part is also deposited on behalf of the company. By increasing the basic in the new salary structure, the contribution of you and the company will also increase.
Gratuity
Gratuity is a long-term benefit plan. An employee who works continuously for 5 years in a company gets it.
Its calculation is also done on Basic Salary. With the implementation of the new Wage Code, the employer will have to spend more money on this as well.
The employee will get more amount as gratuity.
Who will be affected if the new wage code is implemented?
With the implementation of the New Wage Code, changes in the salary structure will also have an impact on the companies, they will have to fill more EPF.
Gratuity will also have to be paid more. At the same time, the government will get more money in the form of tax. This will benefit him.
Your CTC may increase if the company changes the salary structure. To keep the take-home salary the same, the company will not change it.
Read – How to save money while your salary is low?
