The Centre, working towards labour reforms in the country, is likely to implement all the four labour codes in the next few months. After the implementation of the wages code, there will be a significant change in the way basic salary and provident fund (PF) of employees is calculated. Here's how the labour codes will change the pay structure:Under the new wage code, the allowances will be capped at 50 percent. Provident Fund (PF) is calculated on the basis of percentage of basic salary. This keeps the basic salary low, thereby reducing the contribution to provident fund and income tax.

Source: dna June 06, 2021 15:33 UTC