New Delhi. New wage code 2022 : Now the employees will be benefited because the new batch code is going to be implemented soon. Yes, now the new wage code can be implemented.
After its implementation, from the salary of the employees to the pension, the effect is going to be read. Many such provisions have been made in this which is very important for you to know. So let us tell you about it in detail.
Actually it is being claimed in many places. That the new wage code will be applicable from July 1, but till now no official confirmation has been made by the government. And the biggest thing is whenever a policy is implemented, its notification is issued at least 15 days in advance, so there is no question of its implementation from 1st July. But it is also being said that it can be implemented soon. It may be operational at any time, but before its implementation, let us tell you about the advantages and disadvantages of it.
What’s in the new wage code
If we talk about the Batch Court Act 2019, then the basic salary of an employee cannot be less than 50% of the cost of the company. At present, many companies pay more by filling the basic salary by paying very less tax. So that the watch company on the company, let us know about its provisions.
Change in salary structure
With the implementation of the Wage Code Act 2019, the salary structure of the employees will change completely, the salary of the employees will decrease. Because due to increase in basic pay, the PF of the employees will be deducted more. That means their future will be more secure. Along with BF, the contribution in graduation will also increase. That is, the take home salary will definitely decrease, but the employee will get more amount on retirement, which will benefit him a lot in the future.
Worry of high salary people will increase
The impact of the cut in take-home pay will be minimal for low- and middle-income earners. But high income earners may get a big setback. If the PF contribution of high earners will increase more, then their take home salary will also be sufficient, because the basic salary of the employees whose salary will be higher will also be more, hence the PF contribution will also be cut more. Gratuity will also be deducted more for such employees. Basic salary is taxable, so tax will be deducted more if the salary is higher.
