Highlights
Basic salary has to be at least 50 per cent of total salary
PF, gratuity components may increase
New Delhi: Employees can expect a major change in their salary structures if the government notifies the new wage code. The rules are likely to kick in from April 1.
The government s notification on Code on Wages 2019 may reduce the take-home pay of employees.
Under the new rules, allowances would be a maximum of 50 per cent of the total salary. This will result in mandatory changes in an employee s salary structure.
Employees whose basic salary is already 50 per cent or more will not be affected. But those with basic salary less than 50 per cent will see a change in their take-home salary.
Highlights
Salary structure of employees is also likely to change
New rules for overtime may kick in
New Delhi: The maximum working hours in offices could be increased to 12 hours. The new rule could kick in from April 1. The central government is bringing a slew of new rules which would affect the working population.
It is all part of the changes introduced in the Wages Code Bill which was passed in Parliament last year.
According to the new law, 15-30 minutes of extra work done would qualify as overtime. Currently, less than 30 minutes of extra work is not considered for overtime.