New Labor Codes: Old PF Rules Complicate Salary Structure

• New labor codes implemented from November 21, bringing major reforms to social security and including gig workers.
• Fixed-term employees now qualify for gratuity after 1 year of service, a significant change from the previous 5-year requirement.
• Basic salary must now constitute at least 50% of the Cost-to-Company (CTC), altering salary structures and PF deductions.
• The EPF Act, 1952 and its old PF rules remain in effect, creating confusion for employers adapting to the new labor codes.

Why It Matters: New labor codes clash with old PF rules, creating confusion for employee benefits and salaries.