Now the financial year is coming to an end in just a few days. So many rules will change from April 1st. One of which is linked to your celery. Let us know.
○ After 7 days your take home celery may increase
○ You will be able to benefit from the new wage rule
○ The government will implement the new wage law i.e. the new wage code from April 1
In fact the new pay law i.e. the new pay code will be implemented by the government from 1st April. After this rule you can increase your tech home salary by reducing your taxes. Let us know what the new wage law is and how you can avail it.
What is the old rule
Suppose your total annual income i.e. CTC is Rs. 18 lakhs. Under the current rule, the basic salary is 32% of CTC. In this way, the share of basic salary in your monthly CTC should be Rs 48,000. While 50 per cent i.e. HRA of Rs 24000 and after this 10 per cent i.e. Rs 4800 NPS, 12 per cent will be Rs 5760 in Provident Fund. Thus, in a CTC of Rs 1.50 lakh, your monthly salary becomes Rs 82,560 and the remaining Rs 67,440 goes to other things.
This will benefit from the new structure
Now that the new pay code has been implemented from April 1, you can change the structure of your salary. Under the new law, salary will be adjusted in PF, graduation, inflation allowance, travel allowance and house rent allowance. Basic CTC being 50 per cent means that the allowances will not exceed 50 per cent, similarly changes in PF and other allowances will also reduce the tax burden. The effect of which will be seen on your take home celery.
51 Decision to exclude allowances
In fact every aspect was examined before the new wage code was implemented in the cabinet. In particular, after examining all the 196 allowances, the Cabinet has decided to retain 37 per cent and exclude 51 of them so as to reduce the burden on the employed and give them more benefits. Graduation is available only after working for 5 consecutive years in a company but under the new law, employees will be entitled to gratuity only after working for 1 year.
