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New labour codes to affect employees' in-hand salary, companies wage bill


New labour codes to affect employees in-hand salary, companies wage bill
While the new definition of wages will increase the social security component of compensation packages, it could also mean lesser take-home salary for employees
BusinessToday.In | February 15, 2021 | Updated 15:26 IST
Rules for new labour codes to be notified soon
The central government is set to notify the rules under new labour codes, which will have an impact on employees cost to company (CTC) as well as employers wage bills. Employers will have to modify the employee compensations once the extensive labour reforms come into play to accommodate the new definition of wages. Expected changes for employees include higher post-retirement benefits, while decline in take-home salaries. Employers are likely to see increased outgo towards provident fund (PF) and gratuity contributions. ....

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