7th Pay Commission: 𝗖𝗮𝗻 𝗖𝗚 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝗲𝘅𝗽𝗲𝗰𝘁 𝗺𝗼𝗿𝗲 𝘀𝗮𝗹𝗮𝗿𝘆 𝗳𝗿𝗼𝗺 𝗔 | Code on Wages

7th Pay Commission: 𝗖𝗮𝗻 𝗖𝗚 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝗲𝘅𝗽𝗲𝗰𝘁 𝗺𝗼𝗿𝗲 𝘀𝗮𝗹𝗮𝗿𝘆 𝗳𝗿𝗼𝗺 𝗔𝗽𝗿𝗶𝗹 𝟭 𝟮𝟬𝟮𝟭?

While Central Government Employees await some news on the 7th Pay Commission, there is news relating to the wage code.
The new wage code will come into effect from April 1 2021 and this would mean that the salary of the CG employees is likely to rise.
The monthly provident fund and gratuity contribution may change from April 1. This is because the new wage code proposed by the Centre has the provision to have the employees' basic salary at 50 per cent of one's net monthly CTC. This means from April 1 2021, you will not get more than 50 per cent of your net monthly salary in the form of advance and this would eventually affect the pay structure that includes the take home salary, PF and Gratuity.

While the government is yet to announce any deadline on the implementation of the wage code, it is likely that the same may be implemented from April 1 2021. Finance Minister Nirmala Sitharaman in her budget speech had said that the LTC has been kept in tax exemption due to COVID-19. The government hopes that this scheme will also bring in more money into the pockets of government employees, which would lead to increased spending.