Employees' salary structure likely to change from April 1, tho | Code on Wages

Employees' salary structure likely to change from April 1, those with high allowance may see pay cut.

Employees can expect a major change in their salary structures if the government notifies the new wage code. The rules are likely to kick in from April 1.

The government's notification on Code on Wages 2019 may reduce the take-home pay of employees. 
Under the new rules, allowances would be a maximum of 50 per cent of the total salary. This will result in mandatory changes in an employee's salary structure.
 
Employees whose basic salary is already 50 per cent or more will not be affected. But those with basic salary less than 50 per cent will see a change in their take-home salary.
In addition to this, there may be significant changes in the provident fund (PF) and gratuity.

Due to the increase in basic salary, the share towards PF will also increase, since it is calculated on the basis of basic salary.

𝗧𝗵𝗲 𝗻𝗲𝘄 𝗿𝘂𝗹𝗲𝘀 𝘄𝗶𝗹𝗹 𝗹𝗶𝗸𝗲𝗹𝘆 𝗮𝗳𝗳𝗲𝗰𝘁 𝘁𝗵𝗲 𝘀𝗮𝗹𝗮𝗿𝘆 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗼𝗳 𝗵𝗶𝗴𝗵-𝗽𝗮𝗶𝗱 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝘄𝗶𝘁𝗵 𝗮 𝗵𝗶𝗴𝗵 𝗮𝗹𝗹𝗼𝘄𝗮𝗻𝗰𝗲 𝗰𝗼𝗺𝗽𝗼𝗻𝗲𝗻𝘁. Increasing PF and gratuity could also increase the cost of companies as their contribution towards these would increase proportionately.

There could also be a change in working hours for employees. The maximum working hours in offices could be increased to 12 hours.