India's new labor codes could change your salary (and take-home pay)
Heads up—India's new labor codes are about to change how your salary is put together.
Now, basic pay has to be at least 50% of your total CTC (cost to company).
Until now, companies kept basic pay low and boosted allowances to help you take home more each month by cutting down on things like PF and gratuity deductions.
What does this mean for you?
With a higher basic pay, you'll see bigger deductions for PF and gratuity, which might shrink your take-home pay—even if your CTC stays the same.
The labor ministry says most folks with capped PF contributions won't notice much difference in their monthly paycheck.
On the bright side, those extra deductions could boost your long-term savings.
Still, both employers and employees are figuring out how these changes will affect salary talks and company costs going forward.