PF to be increased if the new salary structure implemented and take home salary to be reduced
Wednesday - November 27, 2019 1:43 pm ,
Category : WTN SPECIAL
Changes in the salary structure soon to be implemented
So your take-home salary goes to decrease!
NOV 27 (WTN) - If you are employed, then the structure of your salary is going to change soon and if it changes then it will affect your salary too. If there is a change then it may be that the change in salary structure may reduce your take-home salary. If this happens, then you will have to suffer less take-home salary. But with reduced take-home salary, your PF may increase. You may be wondering what the whole matter is. So for your information, let us know that soon in your basic salary, allowances may also include and if this happens then it may reduce your take-home salary.
According to the information, received from the media, the industry is ready to include allowances in the basic salary with the condition that the government should set a clear category of allowances. Actually, how much the contribution will be given in basic salary, how much will be added to it, which allowances will be part of basic salary, which allowances will be excluded from them. These are all matters which have been under discussion for a long time. In this case, the Supreme Court also in its instruction had asked to ensure that the matter of basic salary and allowances should be clarified as soon as possible.
In the tripartite meeting with the private sector, the industry has agreed in principle that the allowances will be included in the basic salary, whatever it will be decided by the government. This will mean that your basic salary will increase and the increase in basic salary will increase the contribution of PF, but due to this, there may be some decrease in your take-home salary.
The industry agrees with the government, but the industry has placed two conditions before the government for this. The first condition of the industry is that the government should clearly decide which allowances will be clubbed with basic salary and which allowances will not be clubbed with a basic salary. Apart from this, one condition of the industry is that it should not be applied equally to the entire sector, and certain sectors should be fixed for this. According to the information, now the government and industry will consult with each other and determine the sectors to which this rule should apply.
But it is difficult to say how long the basic salary and allowances matter will be decided. But the government has released the draft code for the minimum wage and has started the process of enacting a law on it. With the process of law-making, the basic salary can include allowances.
For your information, let us know that according to the information received from the media, the new amendment proposes to keep HRA out of the basics. At the same time, 50 percent of the remaining allowances will be included in the basic. According to the information, PLI i.e. Performance Linked Incentive will not be considered as an allowance. At the same time, the basic salary cannot be less than the minimum wage.
This means that the new rule may reduce the take-home salary of employed people, but this will be offset by an increase in their PF contribution. But it has to be seen that what is the opinion of the employed people on this decision of the government? Due to low take-home salary, people may feel that their salary has reduced, but while their take-home salary will be less, the basic salary will increase with adding the allowances so the contribution to PF will increase which will benefit them in the long run. Now it has to be seen whether the people employed to accept the decision to be taken by the government and industry.
NOV 27 (WTN) - If you are employed, then the structure of your salary is going to change soon and if it changes then it will affect your salary too. If there is a change then it may be that the change in salary structure may reduce your take-home salary. If this happens, then you will have to suffer less take-home salary. But with reduced take-home salary, your PF may increase. You may be wondering what the whole matter is. So for your information, let us know that soon in your basic salary, allowances may also include and if this happens then it may reduce your take-home salary.
According to the information, received from the media, the industry is ready to include allowances in the basic salary with the condition that the government should set a clear category of allowances. Actually, how much the contribution will be given in basic salary, how much will be added to it, which allowances will be part of basic salary, which allowances will be excluded from them. These are all matters which have been under discussion for a long time. In this case, the Supreme Court also in its instruction had asked to ensure that the matter of basic salary and allowances should be clarified as soon as possible.
In the tripartite meeting with the private sector, the industry has agreed in principle that the allowances will be included in the basic salary, whatever it will be decided by the government. This will mean that your basic salary will increase and the increase in basic salary will increase the contribution of PF, but due to this, there may be some decrease in your take-home salary.
The industry agrees with the government, but the industry has placed two conditions before the government for this. The first condition of the industry is that the government should clearly decide which allowances will be clubbed with basic salary and which allowances will not be clubbed with a basic salary. Apart from this, one condition of the industry is that it should not be applied equally to the entire sector, and certain sectors should be fixed for this. According to the information, now the government and industry will consult with each other and determine the sectors to which this rule should apply.
But it is difficult to say how long the basic salary and allowances matter will be decided. But the government has released the draft code for the minimum wage and has started the process of enacting a law on it. With the process of law-making, the basic salary can include allowances.
For your information, let us know that according to the information received from the media, the new amendment proposes to keep HRA out of the basics. At the same time, 50 percent of the remaining allowances will be included in the basic. According to the information, PLI i.e. Performance Linked Incentive will not be considered as an allowance. At the same time, the basic salary cannot be less than the minimum wage.
This means that the new rule may reduce the take-home salary of employed people, but this will be offset by an increase in their PF contribution. But it has to be seen that what is the opinion of the employed people on this decision of the government? Due to low take-home salary, people may feel that their salary has reduced, but while their take-home salary will be less, the basic salary will increase with adding the allowances so the contribution to PF will increase which will benefit them in the long run. Now it has to be seen whether the people employed to accept the decision to be taken by the government and industry.
