Dear All, As per the new wage code 2019, which have became a low and applicable from 1st April 2021, Need clarification on some of the points.
1- Basic should be 50% as per law, is this a capping? Can an employer give more than 50% like 60-70%?
2- Gratuity is applicable to consultants on a pro-rata basis, is there any minimum time period for the gratuity calculation, and is this amendment is for employees also?
3- DA is a mandatory part of basic salary? private organizations do not give DA at present.
4- then in the case of exempt employees i.e whose Basic is above Rs 15000 (threshold limit of EPF) the EPF deduction will be on what amount?
Scenario (1) at Minimum Wage
Scenario (2) at Rs 15000 threshold limit
Scenario (3) at 12% of the entire Basic
5- Need Clarification on Bonus payable (as per Sec 26) and Gratuity impact (Section 4(2) of the Payment of Gratuity Act).
1- Basic should be 50% as per law, is this a capping? Can an employer give more than 50% like 60-70%?
2- Gratuity is applicable to consultants on a pro-rata basis, is there any minimum time period for the gratuity calculation, and is this amendment is for employees also?
3- DA is a mandatory part of basic salary? private organizations do not give DA at present.
4- then in the case of exempt employees i.e whose Basic is above Rs 15000 (threshold limit of EPF) the EPF deduction will be on what amount?
Scenario (1) at Minimum Wage
Scenario (2) at Rs 15000 threshold limit
Scenario (3) at 12% of the entire Basic
5- Need Clarification on Bonus payable (as per Sec 26) and Gratuity impact (Section 4(2) of the Payment of Gratuity Act).