7th Pay Commission: Bad news, new labour codes not coming into effect today, salary to remain same
New Delhi, Apr 01: In news related to the 7th Pay Commission, the government is yet to notify the rules relating to the four labour codes.
The new wage code was to come into effect from April 1 2021 and this would have meant that the salary of the CG employees would have gone up.
The monthly provident fund and gratuity contribution would have changed starting today, but the rules are yet to be notified. The new codes would have had the provision to have the employees' basic salary at 50 per cent of one's net monthly CTC. This would have meant that from April 1 2021, employees would not get more than 50 per cent of their net monthly salary in the form of advance and this would eventually affect the pay structure that includes the take home salary, PF and Gratuity.
Apurva Chandra, Secretary Labour and Employment had said on February 8 that the ministry would soon be in a position to bring into force the four Codes- Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions and Social Security Codes. He also said that the Centre has consulted all stakeholders while framing the rules.
Finance Minister Nirmala Sitharaman in her budget speech had said that the LTC has been kept in tax exemption due to COVID-19. The government hopes that this scheme will also bring in more money into the pockets of government employees, which would lead to increased spending.