New wage code: After implementation of four codes, an employee's basic salary would become at least 50 per cent of its CTC
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New wage code 2022: After Union Labour Minister Bhupender Yadav exuding confidence about the four labour codes to soon become a reality, new wage code on wages, social security, industrial relations and occupation safety, health and working conditions is in new again. Once the wage code becomes a reality, an employee's basic salary would become at least 50 per cent of its CTC (cost to company), leading to rise in monthly contribution of PF (Provident Fund) and gratuity. This is expected to fuel basic retirement fund of an employee as average basic salary of an employee is around 20-25 per cent of the net CTC.