New Labor Codes: In-Hand Salary Down, But Long-Term Benefits Up

• New labor codes mandate basic salary + DA to be at least 50% of CTC, increasing PF and gratuity contributions.
• In-hand salary may decrease due to higher PF deductions, but total CTC remains unchanged.
• Increased PF and gratuity act as long-term savings, providing greater financial security at retirement.
• Employees will see a significantly larger corpus at retirement due to higher PF contributions and increased gratuity.
• The impact on in-hand salary depends on company policy; employees already at the statutory PF wage ceiling may not see a decrease.