New Labour Codes: Salary Slip Changes Expected in 2-3 Months

• India's new labour codes, effective Nov 21, mandate that at least 50% of an employee's CTC must be considered as wage (basic pay, DA, retaining allowance).
• This change will increase employer and employee contributions to EPF and gratuity, enhancing long-term financial security.
• A higher wage base may lead to a reduction in employees' take-home salary due to increased statutory payouts.
• Companies will need to rework salary structures to comply with the new 50% wage rule, potentially restructuring basic pay.
• The exact timeline for these changes to reflect in salary slips is uncertain, with experts estimating 2.5-3 months pending final government notification.

Why It Matters: New labor codes will soon change your salary, EPF, and gratuity, impacting your finances.