Important updates on New Wage Code, now 25 thousand basic people will get 1.16 crores, will reduce ...
Newz Fast, New Delhi: Till now the new wage code is likely to be implemented. So far 90 percent of the states have prepared the draft rules.
With the implementation of the new wage code, there has been a big change in the Take Home Salary, PF and Gratuity of the private jobseekers.
According to experts, after the implementation of the new wage code, the monthly salary will decrease, but more funds will be ready in EPF, that is, now you will get more money on retirement.
New Wage Code Calculation
According to our partner website Zee Business, if the basic salary in the New Wage Code is Rs 25 thousand per month, then the EPF amount on retirement will be Rs 1,16,62,366 at the rate of 5% annual increment. This will increase the EPF fund further.
New Wage code PF Benefits
If someone's monthly salary is 50 thousand rupees and his basic pay is 15 thousand then the amount of PF on retirement will be Rs 69,97,411.
New Wage code: Cost to company
Actually, the expenditure incurred by a company on its employee is CTC, and this is the entire package of that employee. This includes monthly basic pay, allowances, reimbursement.
At the same time, products like gratuity, annual variable pay, annual bonus are included on an annual basis.
Let us tell you that the amount of CTC is never equal to the employee's take home salary. Take home salary is less than this. There are many components in CTC – CTC = Gross Salary + PF + Gratuity
Basic salary
EPF Calculator New Wage Code: Basic salary is the base income of an employee.
Gross salary
PF Calculator New Wage Code: The salary which is made by adding basic pay and allowances without deducting tax is called gross salary. This includes bonus, overtime pay, holiday pay and other itemized allowances. But it is not take home salary.
Gross Salary = Basic Salary + HRA + Other Allowances
Take Home salary
It is worth noting that the salary that is made after deducting the tax is called net income. Think like this-
Net Salary = Basic Salary + HRA + Allowances - Income Tax - EPF - Professional Tax
These allowances are included
1. HRA: House Rent Allowance is given to the employee in lieu of the house on rent.
2. LTA: LTA is the cost of domestic travel to the employee. This does not include food, hotel fare.
3. Dearness Allowance: DA is a living allowance. It is given in lieu of inflation. It keeps increasing from time to time.
4. Includes special allowance, medical allowance and incentive or incentive.
These allowances are also included
New Wage Code: According to experts, in many companies there is a provision to reimburse the employee for treatment, phone expenses, newspaper bill. This amount is available separately from the salary.