The new wage rules come into effect in April 2021. In this thread, we break down
•How this could impact you
•How a financial adviser can help
The government is seeking feedback on these rules and is yet to publish the final rules.
What: Basic component of #salary to be at least 50%
Impact for Individuals: Contribution to #PF increases, Take home reduces.
Impact for Corporates: Employee costs go up
Should you be worried that your take-home is less? No, because you’re not losing money. In Richard Thaler’s book Nudge,he highlights the importance of automatic contributions to #retirement accounts. You’ll end up saving more money towards retirement without any additional effort
No surprises in today's #RBIPolicy
✅Key rates unchanged
✅Accommodative stance continues
✅Inflation an area of concern
✅Growth: green shoots visible
✅Bond markets will see deeper participation
#Inflation outlook adverse relative to expectations
Food prices could remain elevated despite a good Kharif output
Q3: 6.8%
Q4: 5.4%
H1 (FY22): 4.6% -5.2%
FM Announcement #Atmanirbhar Rozgar Yojana
• EPFO registered companies incentivized to hire freshers or those who have lost their jobs from Mar-Sep
• CG to contribute EPF on behalf of employees for the next 2 years where wages <15,000.on behalf of employers if <1000 employees
Emergency Credit Limit Guarantee Scheme
• Extended to stressed sectors per KV Kamat report
• Outstanding debt 50-500 Crores, to any sized company as long as account was not NPA pre #covid
• 20% extra borrowing to be repaid over 5 years. 1 year #moratorium
Production linked incentive scheme
• 10 new champion sectors
• to boost exports, manufacturing, employment
• Rs. 1,45,000 Crores
Working with a competent investment adviser could help you find the right risk-reward. We see value in selective credit and medium term strategies: ithought.co.in/fixed-income-o…