Those with basic salary of 25 thousand rupees will get Rs 1,16,62,366, know what is the government’s plan
New Wage Code: With the introduction of the new code, the monthly salary of the people will be reduced but more funds will be ready in EPF. This will give you more money on retirement.
New Wage Code New Wage Code is expected to be implemented in the country soon. After the implementation of the new wage code of the government, the take home salary, PF and gratuity of private job seekers will be completely changed. Let us tell you that 90 percent of the states have prepared draft rules regarding this new code. There is a lot of discussion in the country about the Cost to Company (CTC) in the new wage code. Experts say that with the introduction of the new code, the monthly salary of the people will be reduced but more funds will be ready in EPF. This will give you more money on retirement.
According to sources, if the basic salary of people in the New Wage Code is 25 thousand rupees per month, then according to the annual increment of 5 percent, the amount of EPF on retirement will be Rs 1,16,62,366. This will increase the EPF fund even more. On the other hand, if someone’s monthly salary is Rs 50 thousand and his basic pay is 15 thousand, then the amount of PF on retirement will be Rs 69,97,411.
Actually, the expenditure incurred by a company on its employee is CTC, and this is the entire package of that employee. This includes monthly basic pay, allowances, reimbursement. On the other hand, products like Gratuity, Annual Variable Pay, Annual Bonus are included on yearly basis. Let us tell you that the amount of CTC is never equal to the employee’s take home salary. Take home salary is less than this. There are many components in CTC â€“ CTC = Gross Salary + PF + Gratuity
Basic salary is the base income of an employee and without deducting tax, the salary which is made by adding basic pay and allowances is called gross salary. This includes bonus, overtime pay, holiday pay and other itemized allowances, but it is not take home salary. Gross Salary = Basic Salary + HRA + Other Allowances
take home salary
The salary that is made after deducting tax is called net income. Like â€“ Net Salary = Basic Salary + HRA + Allowances â€“ Income Tax â€“ EPF â€“ Professional Tax
These allowances are included
- HRA: House Rent Allowance is given to the employee in lieu of the house on rent.
- LTA: LTA is the cost of domestic travel to the employee. This does not include food, hotel fare.
- Dearness Allowance: DA is a living allowance. It is given in lieu of inflation. It keeps increasing from time to time.
- Includes special allowance, medical allowance and incentive or incentive.
According to experts, in many companies there is a provision to reimburse the employee for treatment, phone expenses, newspaper bills. This amount is available separately from the salary.