Old Labour Laws Vs New Labour Code (Social Security Code 2020) Impact
GOI introduced the Social Security code 2020 and the rules are drafting stage, As per latest news SSC’2020 will get into implemented from 1-04-2021.
Small analysis made on old
Labour Laws Vs New Labour code (SSC 2020).
Please find the below analysis for your reference.
Impact:
For employers : Additional cost
on account of PF contribution on basic salary which is 50% of monthly salary.
For Employees: Take home salary
will be reduced.
|
|
Particulars |
Old Labour Laws |
New Labour Code – (SSC 2020) |
Remarks |
|
1 |
Gross
Monthly salary/Monthly CTC |
1,00,000 |
1,00,000 |
(a+b+c),
Assume 1 Lakh salary |
|
a |
Basic
salary |
15,000 |
50,000 |
Since
Basic should be 50 % of monthly salary under SSC 2020 (a*50%) |
|
b |
Employer
PF contribution@12% |
1,800 |
6,000 |
a*12% |
|
c |
Other
allowances |
83,200 |
44,000 |
|
|
d |
Employee
PF contribution@12% |
1,800 |
6,000 |
a*12% |
|
e |
In
Hand salary (Take Home salary) |
96,400 |
88,000 |
1-b-d |
|
f |
Salary
for Tax purpose |
98,200 |
94,000 |
e+b |
|
g |
Annual
salary for Tax purpose |
11,78,400 |
11,28,000 |
f*12 |
|
h |
Deduction
under chapter VIA |
1,50,000 |
1,50,000 |
Assume
1.5L savings |
|
i |
Standard
Deduction |
50,000 |
50,000 |
section
16(ia) |
|
j |
Taxable
Salary |
9,78,400 |
9,28,000 |
g-h-i |
|
k |
Tax
payable |
1,12,507 |
1,02,024 |
As
per slab rates including cess |
Comments
Post a Comment