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Basic pay 40% vs 50% of CTC - Discuss
Hi,
I read the blog and from what it said, it seems that the employee does not have any say in the whole thing.
As an employee, you can only sit back and calculate what you will get now and on retirement. That is all what changed for you as an employee.
From the employer's point of view, they will have to contribute more towards pf and employees insurance (which are probably a percentage of basic pay) since the basic pay will go up. This will add to their salary costs and they may rejig your payment structure to save on their costs.
Big corporates will simply not bother and follow the law by the word but smaller ones may resort to some unhealthy shit to cover their increased salary bill.
About the twist - Government stands to gain on account of increased investment in provident funds and state insurance. So the real winner here is the government and to some extent the employee (in the long run).
That's what I think. I may be wrong and this is just my point of view.
Thanks!!
I read the blog and from what it said, it seems that the employee does not have any say in the whole thing.
As an employee, you can only sit back and calculate what you will get now and on retirement. That is all what changed for you as an employee.
From the employer's point of view, they will have to contribute more towards pf and employees insurance (which are probably a percentage of basic pay) since the basic pay will go up. This will add to their salary costs and they may rejig your payment structure to save on their costs.
Big corporates will simply not bother and follow the law by the word but smaller ones may resort to some unhealthy shit to cover their increased salary bill.
About the twist - Government stands to gain on account of increased investment in provident funds and state insurance. So the real winner here is the government and to some extent the employee (in the long run).
That's what I think. I may be wrong and this is just my point of view.
Thanks!!
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I have the option to choose for this FY but for new joiners, they have to go with 50%. After doing some calculations, I chose to go with 50%. For the long term, I believe employer contribution makes a big difference to a 1.2% cut on my take-home salary.