New Wage Code Bill 2021

  India's new labor codes, which includes a revised definition of the wages, are to kick starting from 1 April. The new definition is expected to shrink your cash-in-hand salary at the end of the month but boast the long-term benefits like gratuity and leave encashment. As the Government plans to implement New wage code Bill 2021, salary may see huge overhauling. What's there in New Wage Code Bill, 2021 Revised Salary Structure: - According to the New Wage code, if implemented, the share of basic salary in your CTC( Cost-to-company) should be 50 percent or more. If the basic salary is less than 50 percent in your Salary details, then it is going to change soon. Your CTC may also increases with your basic salary when the rules will be implemented. Allowance to employees, like leave travel, house rent, overtime and conveyance Lowrance, will have to be crapped to the remaining 50 percent of CTC.   Increase in PF Contribution: -   Presently 12 percent of your basic Salary now goe

Price hike in oil prices: why and how

The fuel Price in India hit the record high three figures for the first time in the history of India. On Wednesday the retail price of regular petrol hiked by 26 paise in Rajasthan’s Sri Ganganagar and reached Rs. 100.13. While the Diesel rested at Rs. 92.13 after a hike of 27 paise. The fuel prices in India vary from state to state, City to City. It is determined after implementing state and central government taxes. So why are the prices rising like never before? 
After effects of the infamous Pandemic: 

Due to the then on-going Pandemic, the demand of Crude Oil (pre refined petroleum) showed a significant drop in April 2020. Which then turned to a collapse in prices of crude oil. 
        
After Pandemic, Saudi Arabia a key oil producing country voluntarily cut its supply by about one million barrels to 8.125 million barrels of crude oil to boost the prices hence to cover the loss due to Pandemic. Resulting in Price of Crude Oil hiked by about 50%. Compared to $40/Barrel (approx. Rs.2900) in October 2020, the price of Crude oil Jumped to $63.7/Barrel (approx Rs.4620) in January 2021.While in other Countries it is reaching back to normal price, in India it has hit record high. What is the reason?

The Central And State Taxes :

Both the Central and State Government have the excise duty taxes on Petrol and Diesel respectively. For instance in Delhi, The Central and state excise tax amounts to around 180% on base price of petrol and around 141% on base price of diesel. 

Effect on Consumer :

While the current inflation in petroleum is being offset by the food inflation and farmer protest but the Transportation Industry and Travel Heavy Sectors have started feeling the effect of hike in fuel industry. 

The FM Nirmal Sitharaman said that the rise in fuel price is a Dharmasankat and needs to be resolved through cooperation from both states and the centre. She also said that the rise in prices are determined by the OMC ( Oil Marketing Companies) and the Centre has no control in it. She also remarked that due to the constant rise in Brent prices and the prediction of production cuts by OPEC countries which could further cause rise in prices in the future.

On the question on whether the prices of oil could be brought under GST regime so that there will be more control on the prices, the FM said that this could be decided after a thorough meeting of the GST Council. 

Bright Side : May be the Inflation in petroleum can result in shift to more eco-friendly and sustainable Electricity with the Introduction of EV vehicles in the upcoming future of this Country. 

- Rahul Manshani

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