New Labour Code Salary Structure: The 50% Basic Pay Rule and Its Impact on PF and Monthly Income

India's New Labour Codes (Nov 2025) mandate Basic Salary must be 50%+ of CTC. This reduces take-home pay but increases PF and ...
The Financial Express

50% wage rule in Labour Codes explained: Smaller in-hand salary, bigger PF and gratuity — Here’s what’s changing

India's new Labour Codes have introduced a uniform definition of wages, ensuring that basic pay, dearness allowance and retaining allowance together make up at least 50% of an employee's total pay.

How Labour Code 2025 can shrink your salary, if basic pay is below 50% CTC

Today, most organisations keep basic salary on the lower side, usually around 25 to 40% of the total CTC. The new Labour Codes are set to change how organisations calculate PF and gratuity for its ...

Why Your Next Paycheck May Drop: The Wage Code’s 50% Basic Rule Explained

India's implementation of the Code on Wages marks a significant shift in salary structures, mandating that basic salary constitute at least 50% of total CTC. res., Economy, Times Now ...