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Industry asks govt to pause proposed changes to definition of wages
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India Inc has asked the government to put on hold a key proposal in the new wages code that limits employee allowances to 50% of total salary, arguing that it will raise costs for employers while reducing take-home pay.
Agencies
New Delhi: India Inc has asked the government to put on hold a key proposal in the new wages code that limits employee allowances to 50% of total salary, arguing that it will raise costs for employers while reducing take-home pay. The code goes into effect on April 1. Lobby groups such as the Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (Ficci) and the Hotel Association of India (HAI) have asked for changes to the wage structure prescribed in the code. The industry says this will impose additional costs as it copes with the downturn caused by the pandemic.