When all things normal don a new look, why won’t the good-old systems of basic personal finance do the same?
With the unfolding of the new financial year, the very technical definition of ‘wages’ gets a new look and form in sync with the restructured labour laws. The new Wage Code Act comes into effect on April 1. Passed in Parliament in 2019, it aims to rationalise dozens of central labour laws and unify them into a single code.
The legislation will also directly impact the salary structure of private sector employees and their take-home pay. Before we go into how your salary may be affected, let’s find out what wages mean according to the new code.
The Code on Wages, 2019 says that wages would include all remuneration whether by way of salaries, allowances or otherwise, and basic pay, dearness allowance and retaining allowance. The code specifically excludes from the definition of wages components like bonus, housing allowance, pension and provident fund (PF) contributions by the employer, conveyance and travel allowance, overtime allowance, gratuity, retrenchment compensation and commissions.
Under the new code, it is mandatory that the wages make up at least 50 per cent of the employee’s cost to company (CTC). All other payments, apart from basic pay, dearness allowance and retaining allowance, cannot exceed half of the total renumeration that the employee receives. And if they do exceed 50 per cent of the CTC in aggregate, which is the case for a large section of private sector employees, the extra amount by which it exceeds the threshold would be added to the wages.
This story is from the April 2021 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 2021 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
THREE STOCKS MFs WENT BANANAS OVER
When you invest in mutual funds, you are indirectly investing in stocks. So, we decided to find out which are the stocks most mutual funds in the equitylinked savings scheme, flexi-cap, multi-cap and large-and-mid-cap categories invest in. We analysed 149 funds that have a broad mandate to invest in a wide array of stocks and came up with the three stocks that most mutual funds invest in
5 Tricky Travel Questions, And 1 Foolproof Travel Plan
Now that you have finally bid goodbye to your worklife, you have all the available time at your disposal to satiate your travel bug. But before you set sail on your wanderlust, here are a few things you should keep in mind
Save As Per The Corpus You Need
I am 29. I started investing in mutual funds (MFS) two years ago. I invest ₹2,000 each in three equity funds-multicap, focused equity and multi asset allocation-every month.
Short Selling
The capital markets regulator, the Securities and Exchange Board of India (Sebi), recently issued a new circular which said that while placing orders, institutional investors will have to inform in advance whether the transaction is short selling or not. The order also said that retail investors would be allowed to make similar disclosures till the end of trading hours on the day of the transaction.
Mind Exclusions Before Buying Policy
I am a 29-year-old software engineer. I got married a year and a half ago and currently reside with my parents.
HOW AVERAGES CAN RUIN THE MATH
Calculating a retirement corpus on the basis of average returns can have disastrous consequences as different sequence of returns can lead to different outcomes
Calls For Urgent Action As India Braces For Dementia Crisis
As the ageing population grows, the threat of Alzheimer's disease has also spiked, drawing attention to whether India is prepared to provide the medical support it calls for.
ANNUAL REPORT CARD
The Indian equity market is in an upbeat mood, and almost all the funds in the OLM 50 list are among the top five funds in their respective categories in terms of performance.
Don't Just Blindly Follow Maxims
The given investment maxims have proven relevant most of the time, but they are not carved in stone. Investment strategies should be tailored to individual situations
IS YOUR fund FARING WELL?
Outlook Money's India's Best Funds 2024 issue aims to empower you with valuable insights and analysis, to help you make informed decisions on the funds you already own or the ones you plan to invest in