change salary structure April 1 2021 - Latest News Update, Information, Photos & Videos on change salary structure April 1 2021 at Lokmat Times

India's new labour codes, which include a revised definition of wages, are supposed to kick in starting April 1.The new definition is expected to shrink your cash-in-hand salary at the end of the month but boost long term benefits like gratuity and leave encashment. As the government plan to implement New Wage Code Bill 2021 salary may see huge overhaulingRevised salary structure According to New Wage Code, if implemented, the share of basic salary in your CTC should be 50 percent or more. If the basic salary is less than 50 percent in your salary details, then it is going to change soon. Your CTC may also increase along with your basic salary when the new rules are implemented. Allowances to employees, like leave travel, house rent, overtime and conveyance, will have to be capped to the remaining 50 per cent of CTC Increase in PF ContributionPresently, 12 per cent of your basic salary now goes to PF. When the basic salary becomes 50 per cent of the CTC, the contribution to the PF will also increase. For example, for a person with a monthly CTC of Rs 20,000, Rs 10,000 will be the basic salary and Rs 1,200 will go to the PF account. New gratuity rule New rules of gratuity have been made in the new labor laws. Right now, employees are entitled to gratuity after 5 years of continuous work in the same company, but in the new law, employees will be entitled to gratuity even if they have been employed for just one year. Ease in LTC rules The Centre had declared relaxation in the Leave Travel concession (LTC) Scheme due to the COVID-19 outbreak in 2020. The relaxation allowed the central government employees to claim income tax benefits on expenses made between October 12, 2020 to March 31, 2021 on purchase of items that attract GST rate of 12 per cent or more instead of travel expenses. DA Hike Speculations are rife that the Centre would announce a hike of 4 per cent in DA. Speculations are rife that the Centre would also make an announcement regarding DA restoration while announcing the DA hike due since January 2021. If the Centre decides so, then the existing 17% DA of a central government employee will jump to 25 per cent (17 + 4 + 4). EPFO contribution From April 1, 2021, interest on employee contributions to provident fund above Rs 2.5 lakh per annum will be taxable. This is in line with the announcement made by the Union Finanace Minister in her budget speech.Income Tax rule for senior citizens Persons whose age is above 75 years and who has pension income and interest from fixed deposit comes in the same bank and who has only interest income, they need not file income tax return. Bank will deduct the income tax which he has to pay and deposit to the government.

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Change Salary Structure April 1 2021FOLLOW

Change salary structure april 1 2021, Latest News

National :Big change expected in employees' salary structure from April 1 2021

India's new labour codes, which include a revised definition of wages, are supposed to kick in starting April 1.The ... ...