LatestCorporate Compliance 11 September 2026
India's New Labour Codes Slash Take‑Home Pay, Boost PF
India's four labour codes, effective 21 Nov 2025, cap take‑home pay at 50 % of gross, cutting many workers' net wages sharply. At the same time, they raise provident fund rates and broaden gratuity eligibility, increasing retirement and end‑of‑service benefits. Employers must update payroll systems to meet the new rules.
India's four labour codes took effect on 21 Nov 2025, introducing a 50 % cap on take‑home salary that can sharply reduce net pay. The original article details the calculations.
- Provident Fund contributions increase, boosting retirement savings.
- Gratuity eligibility expands, raising end‑of‑service payouts.
- Employers must revamp payroll systems to stay compliant.
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