7th Pay Commission Latest News Today: The salary, provident fund and gratuity of the Central government employees will be impacted if the Central government is implementing the New Wage Code Bill 2021 or new labour law from April 1, 2021. Once the New Wage Code Bill 2021 is introduced, then the changes which the Central Government employees will witness include changes in official working hours, gratuity and provident fund (PF) and take-home salary. As many Central government employees are waiting for the announcement of an increase in Dearness Allowance (DA), if New Wage Code Bill 2021 comes into effect, then employees will have a mixed experience as there will be both advantages and disadvantages. As per reports, the contribution to provident fund will rise while in-hand salary will come down. Also Read - 7th Pay Commission Latest News: Centre Extends Time Limit For Submission of Claims For Travel Allowance
Moreover, the New Wage Code Bill 2021 proposed by the government has the provision to have the basic salary of the employees at 50 per cent of one’s net monthly Cost to Company (CTC) and hence the changes would affect the basic pay structure of an employee. Subsequently, it will also affect PF, Gratuity, Dearness Allowance, Travel Allowance and House Rent Allowance. Also Read - Man Claims In-Laws Locked Him In A Room Demanding to Know How Much Money He Makes
In-hand salary to come down: After the New Wage Code Bill 2021 comes into force, it is said that the take-home salary of an employee will decrease. Also Read - 7th Pay Commission Latest News: Fitment Factor To Impact Monthly Salary of Central Govt Employees After DA Restoration | Here’s How
Change in gratuity rules According to the New Wage Code Bill 2021, employees will be entitled to gratuity even if they have been employed for just one year. However, right now, employees are getting gratuity after five years of continuous work in the same company. If the New Wage Code Bill 2021 is implemented, then it will be for the first time after independence that any changes have been made in the labour laws.
Contribution to PF will increase: As per current rules, 12 per cent of basic salary now goes to PF. When the basic salary becomes 50 per cent of the CTC, the contribution to the PF will automatically increase.
However, no official announcement has been made so far whether the wage code will be implemented from April 1, 2021, or not.