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Latest insights on Human Resource and Workforce related topics in India and articles from HR thought leaders at Aon.

New wage rule may raise India Inc's costs from April

8 Dec 2020 by  The Economic Times

Come April 2021, salary slips, provident fund (PF) and gratuity components, take-home pay and even balance sheets of India Inc will be impacted, thanks to the government’s new compensation rules, which are part of the Code on Wages passed by Parliament last year.

To be effective from next financial year, the new definition of wages (that includes salaries of executives in the private sector) caps allowances at 50% of total compensation. That means basic pay (in government jobs, basic pay plus dearness allowance) will have to be 50% or more of total pay from April.

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The Economic Times