Labour codes won't impact take-home salaries, confirms government
Worried about your paycheck changing with the new labor codes? The government says you can relax—your take-home salary isn't going anywhere.
Even after November 21, provident fund (PF) contributions will still be calculated using the current ₹15,000 wage ceiling, unless you and your employer both agree to raise it.
This update focuses on consolidating existing labor laws and maintaining social security benefits.
Why does it matter?
There's been a lot of talk that these new rules might mean more money gets deducted from your salary each month.
But by keeping the PF wage ceiling as it is, the government wants to make sure your net pay doesn't shrink during this legal shift.
For example, if you earn ₹60,000 a month (with ₹20k as basic pay and ₹40k as allowances), your take-home amount won't drop just because of these changes.
The idea is to protect what you earn while giving companies and workers some flexibility moving forward.