7th Pay Commission latest news today: Central government employees alert! Check how your 7th CPC salary will change if this happens

Center is mulling to introduce New Wage Code Bill 2021 from 1st April 2021. Finance Minister Nirmala Sitharaman has already made an announcement in this regard while presenting the Union Budget 2021 in the parliament. If the New Wage Code Bill gets implemented, a central government servants' allowances like Dearness Allowance (DA), House Rent Allowance (HRA), Travel Allowance (TA), etc. won't be more than 50 per cent of their net CTC. Photo: Reuters

If the New Wage Code Bill 2021 is implemented from 1st April, one's monthly PF contribution will get changed as one's PF contribution is calculated from the basic salary plus Dearness Allowance (DA). As noth variables of the PF contributions will get changed, the PF contribution and the PF passbook balance is bound to change if the New Wage Code Bill 2021 is implemented from 1 st April. Photo: Reuters

Like PF contribution, one's Gratuity contribution is also expected to change as it is also calculated from one's basic salary and DA. Photo: Reuters

On how the New Wage Code will lead to change in the monthly allowances like DA, TA, HRA, etc. SEBI registered tax and investment expert Jitendra Solanki said, "The New Wage Code 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. Since DA, TA, HRA, etc. fall under the allowance heads. They are bound to get affected once the New Wage Act 2021 gets implemented." Photo: Reuters

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. Photo: Reuters