7th Pay Commission Latest News: Your PF, gratuity contribution may change from April 2021! Centre mulling to introduce new Wage Code
7th Pay Commission latest news: The monthly Provident Fund (PF) contribution and Gratuity of the central government employees may change from 1st April 2021.
7th Pay Commission latest news: The monthly Provident Fund (PF) contribution and Gratuity of the central government employees may change from 1st April 2021. This might become possible because the central government is mulling to introduce a new wage code from the new financial year. Secretary Labour & Employment Apurva Chandra made an indication about the centre's move while elaborating upon the budgetary allocation and provisions on Monday in New Delhi.
7th CPC new wage code provision
The new wage code has the provision to have one's basic salary at least 50 per cent of one's net monthly CTC. Means, if the new wage code gets implemented from 1st April 2021, then no one will be able to get more than 50 per cent of one's net monthly salary in form of allowance i.e. monthly allowance can't be more than 50 per cent if the new wage code gets implemented. Photo: Reuters
Cue for wage code
"This (The) Ministry would soon be in a position to bring into force the four Codes, viz., Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions and Social Security Codes," said Apurva Chandra, Secretary, Labour & Employment. He said that all stakeholders are also consulted in the framing of rules. Photo: PTI
How wage code will impact your PF, Gratuity
As one's monthly PF contribution and Gratuity is a part of one's monthly basic salary. After the implementation of the new wage code will lead to change in one's monthly PF and Gratuity contribution. However, it is yet to be seen whether the wage code gets implemented from 1st April 2021 or not as the centre is yet to make any deadline for implementation of the new wage code. Photo: Reuters
Wage code entry
Finance Minister Nirmala Sitharaman had announced the new wage code in her Union Budget 2019 and after that, the central government is yet to implement it. But, some media reports are claiming for implementation of the new wage code after the recent announcement by the Secretary Labour & Employment in this regard. Photo: Reuters
Things yet to become clear
Since the central government is in the process of finalising the wage code, it is not clear whether the monthly salary of a government or a private employee (having EPF account) will go up or down due to new monthly contribution of the PF, EPF and Gratuity, but it's for sure that one's PF, EPF and Gratuity contribution will change. Photo: Reuters
New wage code to impact private sector employees too
This change in Provident Fund (PF) may also impact private sector employees' EPF passbook balance as the new wage code that is likely to get implemented from 1st April 2021. Photo: Reuters