According to the new draft rule, the basic pay will be 50% or more of the total salary. This will also change the salary structure of most employees, as the non-perks part of the salary will be less than 50 per cent of the total salary. Similarly, other allowances in the total salary will also change, i.e. it will be more.
The increase in basic salary will further increase the PF which is based on basic pay. An increase in the basic pay will increase the PF, which means that there will be a cut in the take-home or hand-to-hand pay.
With the increase in contribution to gratuity and PF, the amount received after retirement will increase. The highest-paid officers will see the most change in their pay structure and will be affected the most. With the increase in PF and gratuity, the cost of companies will also increase. And now the companies will also have to contribute more to the PF for the employees.
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