7th Pay Commission Latest News Today: The Central government is planning to implement New Wage Code Bill from April 1 this year. According to a report on Zee Business, if the New Wage Code Bill is implemented, then the minimum basic salary of a government employee will become at least 50 per cent of the net CTC. Hence, the New Wage Code Bill will largely impact one government employee’s allowances like Dearness Allowance (DA), Travel Allowance (TA), House Rent Allowance (HRA).Also Read - Himachal Pradesh Statehood Day: CM Jai Ram Thakur Announces Benefits for Employees, Pensioners; 31 Per Cent DA

Giving more details on how the New Wage Code Bill will change the monthly allowances like DA, TA, HRA of the government employees, SEBI registered tax and investment expert Jitendra Solanki told Zee Business that the New Wage Code Bill caps the allowance head at 50 per cent of the net monthly CTC, which means one’s monthly allowance can’t be more than 50 per cent of its net CTC. Also Read - 7th Pay Commission: Central Govt. Employees Likely To Get Higher DA, HRA | Complete Details Here

Will it also affect the Provident Fund (PF) and Gratuity? Giving details, Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said that once the New Wage Code Bill gets implemented, one’s monthly PF and Gratuity will get changed too as the monthly PF and Gratuity contribution is calculated on monthly basic plus DA. Once the DA and basic salary will change, one’s PF and Gratuity contribution will automatically change after the New Wage Act 2021 implementation. Also Read - 7th Pay Commission: House Rent Allowance Likely To Increase by 3% For Govt Employees Soon, But Here’s The Catch