New Salary Structure: After the implementation of this law, the salary (take home) in the hands of the employees will decrease, while the provident fund (PF) liability of the companies will increase.
New Salary Structure: If you do a job then there is very important news for you. Your salary structure is going to change in the coming few months. The government is going to implement all the four labor laws. After this you will have to change in Take Home Salary (New Salary Structure 2021) and PF (Provident Fund). According to the news of PTI, your take home salary will decrease, while provident fund ie PF will increase.
Provident fund liability of companies will increase
According to the news, in the coming few months, the government will implement four labor laws. The central government is preparing to move forward to implement these laws. After the implementation of this law, the salary (take home) in the hands of the employees will decrease, while at the same time the liability of the provident fund (PF) of the companies will increase. After the implementation of the wage law, there will be a big change in the way of calculation of basic salary and provident fund of employees.
which four labor laws
The Labor Ministry wanted to implement these four labor laws – Industrial Relations, Wages, Social Security, Occupational and Health Protection and Working Conditions – from April 1, 2021. 44 Central labor laws will be harmonized with these four labor laws. The ministry had also finalized the rules under these four laws. But these could not be implemented because many states were not in a position to notify these rules under their own laws. Labor is a concurrent subject under the Constitution of India. In such a situation, both the Center and the states will have to notify these rules under these four codes, only then these laws will come into existence in the respective states.
Many major states have not finalized the rules
A source said that several major states have not finalized the rules under these four laws. Some states are in the process of finalizing the rules for the implementation of these laws. The central government cannot always wait for the states to finalize these rules. In such a situation, the government plans to implement these laws in a month or two because companies and establishments will have to give some time to adjust with the new laws.
What will change in salary calculation
The source said that some states have already released the draft rules. These states include Uttar Pradesh, Bihar, Madhya Pradesh, Haryana, Odisha, Punjab, Gujarat, Karnataka and Uttarakhand. Under the new wage law, the allowances will be capped at 50 percent. This means that 50 percent of the total salary of the employees (New salary structure 2021) will be the basic salary. Provident fund is calculated on the basis of percentage of basic salary. This includes basic pay and dearness allowance. At present, employers divide the salary into several types of allowances. Due to this the basic salary remains low, due to which the contribution to provident fund and income tax also remains low. In the new wage code, the provident fund contribution will be fixed at the rate of 50 percent of the total salary.