New salary rules for India are not coming into force from tomorrow. A senior labour ministry official told a leading business daily that the new wage code that may overhaul the salary structure for most working staff has been put on hold for now.
So, along with the new wage code rules, 3 other codes including social security code, the code on industrial relations and the code on occupational safety, health and working conditions won't be implemented from the new fiscal year beginning tomorrow.
The deferment will provide companies with more time to rework employee salary structure. Further as per expert in the domain Aon, most companies are still seeking clarity with respect to components to be included or excluded in the basic pay.
And as and when the centre notifies it, the new wage code shall bring about changes to the salary structure of most of India Inc. So, with it for the employees there shall be change in take home pay, gratuity, PF etc. And for India Inc, there shall be an impact on their balance sheet.