The new labour code is set to change how your salary is structured, and while you might see a temporary dip in your monthly take-home pay, it's a massive win for your long-term financial security.

Here's a simple breakdown of what's changing and why the new labour codes are important for your future.

Your basic salary is getting a mandatory boost

The main provision of the new labour code ensures that your Basic Salary must be at least 50% of your total Cost-to-Company (CTC).

Why this matters: Earlier, many companies kept the basic salary low and inflated allowances. Since key social security benefits like Provident Fund (PF) and Gratuity are calculated on your basic pay, a low basic salary meant lower contributions and lower liability for the employer.

The new rule puts an end to this

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