New Delhi: The central government has introduced new labor laws. Which is expected to be implemented from 1 April 2021. These laws have been passed in Parliament. Now there is a delay in implementation. The government is considering implementing the new laws from next month. If this happens, employees will have both benefits and disadvantages. In the new wage code, the basic pay will be in Coast to Company (CTC) should not be less than 50 percent, the remaining 50 percent will include DA, along with other allowances.

In such a situation, due to 50 percent of the basic salary of employees, the share of contribution in PF will increase. However, the employee will suffer from this, as the salary in hand will come down. For example, if your salary is 50 thousand rupees. According to the new labor law, it will have a basic pay of 50 percent, which means 25 thousand salaries to a person. According to the rule, 12 percent company and 12 percent employee share will be deposited in the EPFO ​​account. This means that about 6 thousand rupees will be deducted from the salary and go to the PF account. In such a situation, in-hand salary will come down. But more money will be deposited in provident fund account, which will be useful in future.

Explain that the government fixes the interest rate of EPFO ​​every year. At present, the interest rate on EPF is fixed at 8.5 percent. The government pays interest on the amount deposited in the PF account. The principal is also added next year. In such a situation, the account holder also gets the benefit of compound interest.

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