7th Pay Commission: Central government employees must not miss this latest news
7th Pay Commission latest news today: New Wage Code is one of the most buzzing words among the central government employees' minds these days.
7th Pay Commission latest news today: New Wage Code is one of the most buzzing words among the central government employees' minds these days. The Finance Minister has already made it clear that the New Wage Act 2021 will be a reality soon and the Labour Secretary also indicated about the levels of seriousness of the center in this regard. According to the New Wage Code provisions, both central government servants and private sector employees will be affected by the new wage code as it will put a cap on the allowances like Dearness Allowance (DA), House Rent Allowance (HRA), Travel Allowance (TA) and others.
7th CPC salary
Once implemented, both central and private sector employees' basic salary will become at least 50 per cent of their net CTC means the basic salary of an employee can't be less than 50 per cent of the net salary. In other words, net allowance of an employee (both central, state and private sector employees).
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Change in monthly Gratuity contribution
Speaking on the New Wage Code impact on central government employees; Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "Since, monthly PF contribution and Gratuity of a central government servant is calculated by the basic salary and DA of a central government employee. After the implementation of the New Wage Code, monthly Gratuity contribution is expected to change." However, Jhaveri maintained that currently, central government employees are drawing their monthly salary under the seventh pay commission pay matrix, which is more or less near to the basic provisions of the New Wage Code. So, there won't be much change in the monthly Gratuity contribution but a change under this head of one's payslip can't be rejected.
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