After losing jobs and cutting wages during the epidemic, now is the time to raise wages. After the stabilization of the Covid-19 situation – the withdrawal of pay cuts and the improvement in the job market – companies are re-evaluating their employees.
As job restoration and full pay leave employees with losses, the assessment will provide much-needed incentives and some extra money in tackling the high rate of inflation.
However, in addition to removing some of the additional costs and barriers to spending from the increased portion of wages, savings and investments should be made from it for future unpleasant situations and to increase spending due to inflation.
“One of the best moments of a salaried employee’s life is when his salary increases. Usually, the younger generation likes to celebrate the occasion with their friends. There is nothing wrong with getting momentary satisfaction for a year of hard work, but it is always wise to restructure your investment portfolio with each increase, “said Vijay Singania, Chairman, Tradesmart.
In addition to making provision for unforeseen circumstances and tackling inflation, it is also important to invest in meeting future life goals.
“Growing money should be allocated immediately to multiply your assets. It can be either to reduce your liability or to invest in instruments like stocks, exchange traded funds (ETFs), or public provident funds (PPFs) that help you achieve an important goal in life, ”said Singania.
Although the assessment will provide additional cash in the hands of the staff, some of it will be eaten up by the tax, unless the tax-saving options are used properly.
“One needs to consider that with an increase comes high tax baggage. In such a situation, the individual has to plan his investment in a tax efficient way, “said Singania.