Basic salary of private employees will increase from Rs 15,000 to Rs 21,000! Many big changes will happen from October 1?

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New Wage Code: From October 1, the salary structure of employees working in private companies will change. Meanwhile, there is also news that his basic salary can be increased.


New Wage Code: After the implementation of the new wage code, there will be many big changes in the life of the salaried employees. The biggest impact is likely to be on their salary. It is being estimated that after the implementation of the new wage code, the take home salary of the employees will decrease. But there is also talk that the basic minimum salary of the employees can be increased.

What will change for employees from October 1?

In fact, according to the new Wage Code rules, the basic salary of the employees should be 50% of the total salary or the Cost to Company (CTC), cannot be less than this. At present, most companies keep the basic salary of the employees low and the number of allowances remains high. But as soon as the new wage code is implemented, the existing system will change completely. Companies will have to keep the basic salary of the employees 50% or more of the CTC. In the remaining 50 percent, all the allowances being received by the employees will come.

Demand to increase basic salary to Rs 21,000

In such a situation, the contribution of employees in PF and gratuity will increase but take home salary will decrease. The labor unions were demanding that the minimum basic salary of the employees should be increased from Rs 15000 to Rs 21000 regarding the rules of the Labor Code. If this happens, then the salary of the salaried class working in private companies will increase. According to the existing rules, PF is not mandatory for employees earning more than Rs 15,000 per month. If the salary is more than Rs 15,000, then the contribution of PF on the actual salary is voluntary on the part of the employer and the employee. Meaning they contribute if they want and don’t if they want.


The new wage code was set to be implemented from April 1 this year, but it was postponed. Some states are not yet ready to implement it. But now it can be implemented in October. When the new Wage Code is implemented, there will be a big change in the salary structure of the employees. Parliament on August 2019 changed the rules related to three labor codes, industrial relations, safety of work, health and working conditions and social security. These rules were passed on September 2020.

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