The Ministry of Labour & Employment has calmed the worries of employees to see a reduction in take-home salary following the implementation of the new Labour codes in a fresh clarification. The Ministry underlined that the new Labour Codes will not reduce take-home pay if PF deduction is on the statutory wage ceiling.

Any PF contribution above Rs 15,000 is optional, not compulsory, the Ministry added.

It means an employee’s company can’t force him/her for extra PF cuts beyond the legal limit unless they choose to contribute more.

Earlier, the government notified the labour codes on November 21, 2025, marking one of the biggest reforms in India’s work environment in decades.

One of the major changes is the new uniform definition of ‘wages’. Under the codes, statutory social security ben

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