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As per Wage code it will be required to restructure the existing CTC as follows:- One example-
Existing CTC :-
Basic , HRA, Some other allowances , monthly gross, Employer's portion of PF, ESI, Statutory Bonus, Mediclaim & Group LIC Premium, LTA, Gratuity, Leave encashment.& CTC.
CTC as per Wage code:-
Existing CTC minus Employer's portion of ESI, Mediclaim and Group LIC Premium ( not payable to employee), Gratuity (not to be considered as it appears in exclusion list point no. (j) as per definition ).
After obtaining the Wage Code CTC - 50% of the same will be Basic and rest 50% will be divided in to HRA, Some other allowances, Employer's portion of PF, Bonus, LTA, & Leave encashment .
The above example is based on one employee's CTC structure in a specific Organization. This will vary with the Oganizations and individual CTC structure. After implementation of Wage Code, there will be two sets of CTC - one as per Wage code and another actual CTC.
Thanks & Regards,
S K Bandyopadhyay ( West Bengal, Howrah)
CEO-USD HR Solutions
From India, New Delhi