India labor codes require 50% wages, firms add tax-friendly perks
Thanks to new labor codes, companies in India are shaking up how they pay employees.
The rules now require that wages make up at least 50% of your total salary, which means bigger contributions to provident fund and gratuity, but smaller take-home pay.
To soften the blow, firms are adding tax-friendly perks like meal vouchers, fuel reimbursements, car leases, and support for kids' education.
Meal vouchers tax-exempt up to ₹200
With meal vouchers now tax-exempt up to ₹200 per meal, they're suddenly a hot favorite.
Companies are also offering allowances for professional development and reimbursing fuel or driver costs.
Depending on the industry, you might see uniform allowances in manufacturing or extra communication benefits in services—all aimed at keeping employees happy despite tighter salary hikes.