The new Wage Code was going to be implemented for the employees from April 1, but now it has been postponed.
The new Wage Code was going to be implemented for the employees from April 1, but now it has been postponed. According to labor ministry officials, the new wedge code has been postponed for the time being. For the time being, the salary of salaried people will remain the same, there will be no change in it.
EPFO board member Vijay Upadhyay (Virjesh Upadhyay) has confirmed the postponement of the new wedge code. He said that the new wedge code is still being discussed further. A decision will be taken soon after reaching the conclusion.
Let us know that the new wedge code has been in the headlines in the media for the past several days. It was being claimed that the new wedge code would come into force from 1 April. However, nothing was said about it officially by the government. On the one hand, while some people were claiming that the new wedge code was being implemented, there were also many people who were saying that there are practical flaws in the said wedge code, so it cannot be implemented.
New Wage Code
According to the Wage Code Act, 2019, the basic salary of an employee cannot be less than 50 percent of the company’s cost (CTC). Now many companies reduce the basic salary significantly and give more allowances from above so that the burden on the company will be reduced.
New wage code will change salary structure
With the implementation of the Wage Code Act, 2019, people’s salary structure will be completely changed. Take home salary will reduce in the hands of employees, because the increase in basic pay will cut the PF of the employees. This will make their future more secure.
Along with PF, contribution to Monthly Gratuity will also increase. In this way the take home salary will decrease but the employee will get more amount on retirement.
And also the code will not apply
Along with the new wage code, social security code, code on industrial relations and code on occupational safety, health and working conditions (code on occupational safety, health and working conditions) from 1 April Will not be implemented.
Social security code
The Social Security Code provides that an employee’s contract in the company, irrespective of the time of day, will be entitled to gratuity. Till now gratuity is received only when the employee completes 5 years tenure in a company.