India's new labor code requires wages at least half CTC
Business
Heads up: India's new labor code says your wages must be at least half of your total CTC, which means companies will need to tweak salary structures.
Even if your basic pay doesn't change, you might see less money in hand each month as more of your salary goes into things like PF and gratuity.
Perks above 50% count as wages
If perks like house rent or travel allowance make up more than 50% of your CTC, the extra will now count as wages, so PF contributions may go up, and higher statutory contributions can reduce take-home pay.
For someone earning ₹15 lakh a year, that could mean about ₹52,000 less take-home pay annually.
Companies might adjust packages to balance costs, but expect higher long-term savings and a bit less in your monthly bank account.