How New Wage Code Impacts Your Take-Home Salary And How It Can Be Restructured

The new Wage Code which is in effect from April 1, shall have an effect on salary structures in the organised sector. As per these rules, wages should be at least 50% of the employee's total remuneration. That includes basic salary, dearness allowance and retaining allowance. If these exceed 50% of the total income, the amount above 50% will be treated as part of the wages, according to ET.

No official announcement has been made yet though.

NDTV

Announcement soon?

¡°This ministry would soon be in a position to bring into force the four Codes, viz., Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions (OSH) and Social Security Codes,¡± said Labour Secretary Chandra while talking to the media as per India Today.

Employees are expected to higher post-retirement benefits and a decline in take-home salaries each month. However, one can restructure one's salary to be friendly under the new wage codes.

Business Today

There shall be more social benefits for the employees.

Gratuity shall be calculated on the basis of a larger base, including basic pay as well as other allowances such as travel, special allowance and more.

All in all, things are going to change but it is not all bad.