Govt Clarifies: New Labour Codes Won't Cut Take-Home Pay

• India's labour ministry clarified that new labour codes will not reduce employees' take-home salaries.
• Provident Fund (PF) contributions will continue to be calculated on the existing statutory wage ceiling of ₹15,000.
• Mandatory deductions will not apply to full salary, even if allowances are a larger share of compensation.
• Contributions above the statutory threshold are optional and require mutual consent, with no legal requirement to deduct PF on wages exceeding the ceiling.
• The clarification addresses concerns about the four labour codes, enacted in 2020, which consolidate 29 existing labour laws.

Why It Matters: This clarifies new labour codes won't reduce your take-home salary.