New salary rules will be applicable from this month, know your salary will be cut or increase

new Delhi. Changes can be made to the component or structure of employees’ in-hand or take-home salary from the beginning of next financial year i.e. April, 2021. After the government notified the draft rules under the new pay rules, employees’ salary allowances may start to decrease from next year as companies will need to restructure pay packages. The new rules, which are part of the Code on Pay 2019, are likely to take effect from the next financial year starting in April. The central government has made some changes in salary 2019. In which you can deduct the take home salary from the new fiscal year ie April 2021. The reason for this is that companies will have to change the salary structure of employees under the new wage rules.

Let us know that the next year i.e. the government is going to implement the new wage rule i.e. pay scale rules from the month of April in 2021. These rules are part of the wedge code passed by Parliament last year. A new definition of pay scale is set to begin next financial year. According to the new draft, the employee’s allowance should not exceed 50 percent of the total pay package. That is, the basic salary from the new fiscal year will not exceed 50 percent of the total salary. This means that employees’ gratuity and contribution to PF will increase. Therefore, if these hand salary is less to the employees then their gratuity and PF component may increase. However, the new salary rules may benefit after retirement. On the other hand, the current financial situation may be affected due to the cut in take home salary.

Reduction in these hand salaries means that your household expenses, loans, SIPs will have to be restructured. Usually 40 percent of the salary class people go to pay EMI. This includes EMIs like home loans, car loans. In such a situation, if there is a reduction in take home salary according to the new salary rules, then there may be difficulties in managing. After the new wage rules are implemented, there will be a big impact in your life.

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