April 2026 new wage code may cut take-home, boost savings
Business
Big changes have arrived in your salary slip from April 2026.
The New Wage Code will make sure that at least half of your total pay is counted as Basic Pay, Dearness Allowance, and Retaining Allowance.
This means you might see a smaller take-home salary each month, but your long-term savings are set to grow.
EPF contributions and gratuity payouts rise
With more of your salary counted as Basic Pay, both you and your employer will contribute more to your Employee Provident Fund (EPF).
For example, if you earn ₹1 lakh a month, EPF deductions could jump from ₹3,600 to ₹6,000.
Gratuity payouts will also get a boost since they're calculated on a higher wage base, so while you'll take home a bit less now, you'll be building up stronger retirement savings for later.