7th Pay Commission latest update: Your PF, gratuity contribution may change from April 2021! Check Central government's wage code provisions
7th Pay Commission latest news: The Central Government employees may get their monthly PF and gratuity contribution changed from 1st April 2021. This change in Provident Fund (PF) may also impact private sector employees' EPF passbook balance as the new wage code that is likely to get implemented from 1st April 2021.
7th Pay Commission latest news: The Central Government employees may get their monthly PF and gratuity contribution changed from 1st April 2021. This change in Provident Fund (PF) may also impact private sector employees' EPF passbook balance as the new wage code that is likely to get implemented from 1st April 2021. This new wage code has the provision to have one's basic salary at least 50 per cent of one's net monthly CTC. Means, if the new wage code gets implemented from 1st April 2021, then no one will be able to get more than 50 per cent of one's net monthly salary in form of allowance i.e. monthly allowance can't be more than 50 per cent if the new wge code gets implemented.
Elaborating upon the budgetary allocations and provisions, Secretary Labour & Employment Apurva Chandra said on Monday that the rule making process is already underway for four labour codes which includes a new wage code.
"This Ministry would soon be in a position to bring into force the four Codes, viz., Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions and Social Security Codes," said Apurva Chandra, Secretary, Labour & Employment. He said that all stakeholders are also consulted in framing of rules.
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How wge code will impact your PF, Gratuity
As one's monthly PF contribution and Gratuity is a part of one's monthly basic salary. After the implementation of the new wage code will lead to change in one's monthly PF and Gratuity contribution. However, it is yet to be seen whether the wage code gets implemented from 1st April 2021 or not as the centre is yet to make any deadline for implementation of the new wage code.
Finance Minister Nirmala Sitharaman had announced the new wage code in her Union Budget 2019 and after that the central government is yet to implement it. But, some media reports are claiming for implementation of the new wage code after the recent announcement by the Secretary Labour & Employment in this regard.
Since, the central government is in the process of finalising the wage code, it is not clear whether the monthly salary of a government or a private employee (having EPF account) will go up or down due to new monthly contribution of the PF, EPF and Gratuity, but it's for sure that one's PF, EPF and Gratuity contribution will change.
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