New Delhi: 7th Pay Commission latest update –As opposed to previous reports that your take home pay will take a hit from April 1 owing to the implementation of the new wage code, a financial daily has reported that the latter has been now deferred.
Economic Times, quoting a senior official said that the decision to implement the new wage code has been deferred, meaning which, employees salary structure will have a status-quo.
It was previously reported in the media that the government’s notification on Code on Wages 2019 may reduce the take-home pay of employees next financial year ie, April 2021 while components like PF and Gratuity might rise. This is based on the grounds that the new wage code mentions provision entailing that the employee’s basic salary will be at least 50 percent of his/her net monthly CTC. Hence, if this provision comes into effect, it will mean that employees will not be able to get more than 50 percent of his/her net monthly salary in form of allowance.
This ministry was also purportedly in works to bring into force the four Codes, viz., Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions (OSH) and Social Security Codes.
The labour ministry had envisaged implementing the four labour codes from April 1 this year in one go. The ministry was reportedly in final leg of amalgamating 44 central labour laws into four broad codes on wages, industrial relations, social security and OSH because it wanted to implement all four codes in one go.