What’s the Deal?
According to the new pay rules, allowances of an employee cannot exceed 50% of the total compensation. (The basic pay of the employee will be 50% or more)
What’s the Impact?
- The take-home salary of employees working in private companies will reduce.
However, Savings can rise in the longer run!
- Tax liability will be reduced, as the company will add its PF contribution to the employee to its CTC.
Is it Applicable to me?
Yep, it will apply to all levels of private Employees from 1st April 2021