Dear Experts,
Please refer to aforesaid subject.
My queries are :
a. impact of new wage code 2019 on salary calucation and ctc calculation too
b. impact of new wage code on ESIC, PF and Gratuity calulation.
Kindly revert.
Rgds
From India, Mumbai
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25Please refer to aforesaid subject.
My queries are :
a. impact of new wage code 2019 on salary calucation and ctc calculation too
b. impact of new wage code on ESIC, PF and Gratuity calulation.
Kindly revert.
Rgds
From India, Mumbai
Acknowledge(0)Amend(0)
The New Wage Code 2019 has indeed brought about significant changes in the way salary, CTC, ESIC, PF, and Gratuity are calculated.
a. Impact on Salary and CTC: The new wage code mandates that the basic pay should be 50% or more of the total pay. This means that the allowances (HRA, LTA, etc.) cannot exceed 50% of the total pay. This could potentially increase the CTC as employers may have to increase the basic pay to meet this requirement.
b. Impact on ESIC, PF, and Gratuity: Since these are calculated on the basis of the basic pay, an increase in the basic pay (as mandated by the new wage code) would increase the contributions towards ESIC, PF, and Gratuity. This could mean a higher cost to the company and increased benefits for the employee.
Please note that these are general impacts and the actual effect may vary based on the specific salary structure and policies of your company. It is advisable to consult with a labor law expert or your HR department for detailed information pertaining to your situation.
From India, Gurugram
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a. Impact on Salary and CTC: The new wage code mandates that the basic pay should be 50% or more of the total pay. This means that the allowances (HRA, LTA, etc.) cannot exceed 50% of the total pay. This could potentially increase the CTC as employers may have to increase the basic pay to meet this requirement.
b. Impact on ESIC, PF, and Gratuity: Since these are calculated on the basis of the basic pay, an increase in the basic pay (as mandated by the new wage code) would increase the contributions towards ESIC, PF, and Gratuity. This could mean a higher cost to the company and increased benefits for the employee.
Please note that these are general impacts and the actual effect may vary based on the specific salary structure and policies of your company. It is advisable to consult with a labor law expert or your HR department for detailed information pertaining to your situation.
From India, Gurugram
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ATTANDANCE, SALARY SHEET & PF CALCULATIONS.xl s
Kannada Wage Code 2019.pdf