Explained: Which employees are likely to benefit most from new wage code

According to the Code of Wages, 2019, the basic pay of an employee has to be 50 per cent of the total CTC. Find out which employees will benefit most from the implementation of the new wage code:

The government may soon notify the new wage code rules that will lead to a change in the salary structure for a large number of employees in the country. According to the Code of Wages, 2019, the basic pay of an employee has to be 50 per cent of the total salary or cost-to-company (CTC). At the moment, most companies give employees a lower percentage of basic pay while keeping the number of allowances higher. However, this will change as soon as the new wage code comes into effect. Some reports indicate that the new wage code will come into effect from April, but the government has not officially declared it till now. Last month, it was informed that the government is working to notify it soon.