Chennai: Aparajitha Corporate Services Private Limited, the country’s no.1 company for Compliance, today organized a ’60 Minutes Compliance’ webinar on Decrypting Salary under the guidelines of the new definition of the Wage Code 2019.
The webinar was aimed at explaining numerous aspects of salary and how it is different under various labor legislations. The session also gave a detailed description of the inclusive and non-inclusive portions which make up the two halves of fair pay and how there is no ratio prescribed between the two portions and an insight into the new realignment of remuneration under the new proposed labor codes.
Speaking on the occasion, Mr. Nagaraj Krishnan, Managing Director, Aparajitha Corporate Service Private Limited said, “We have different definitions for the term ‘Salary’, however, under the new codes that were passed by the Parliament last year, the definition is going to be common, except, may be for a small change for the purposes of payment of wages and equal remuneration alone. More importantly, a ceiling ( 50% ) is fixed for the ‘non-inclusive portion’ of the monthly wages, which otherwise stated, at least 50% of the monthly compensation shall be necessarily considered as wages for any purpose, subject, of course, to the restriction, if any, notified. The salary structures which have the wage portion working out to less than 50% may have to be revisited. This significant change could have an impact on other areas like PF, ESI, Bonus, Gratuity, etc which people might be unaware of. The webinar intends to take a deep-dive into it and explain to people about its functioning in detail.”
The webinar covered and answered the following aspects…
How much percent of gross remuneration should form the basis to calculate benefits like provident fund, gratuity, compensations under the new wage definition.
How the new wage definition is a move to simplify various regulations related to wages and ensure easier implementations.
On how wage thresholds for laws related to Bonus, Gratuity, Employees State Insurance, and Provident Fund have not been decided yet.
The webinar, which saw participation by it’ 600 attendees individuals comprising of HR professionals and mid & senior level personnel across various industry sectors, was moderated and addressed by Mr. K. Varadan, Chief Consultation Officer, Aparajitha Corporate Services Private Limited.