Ever since the new labour codes were notified in November, a lot of employees have been thinking that their take-home salary will reduce once the basic salary increases to 50% of CTC and allowances are trimmed. However, going by a recent update from labour ministry there may not be any salary reduction due to higher EPF deduction for most of the employees.

The Labour Ministry on Wednesday came up with a clarification, saying that the take-home salary will not reduce for employees whose PF deduction is on the statutory wage ceiling of Rs 15,000. The ministry is referring to employees whose monthly PF contribution is Rs 1,800 (12% of Rs 15,000). Income Tax Guide Income Tax Slabs FY 2025-26 Income Tax Calculator 2025 New Income Tax Bill 2025

What does Labour Ministry say a

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