Since the New Labour Codes were notified last month, many employees feared a drop in in-hand salary. Now, the Labour Ministry has clarified that the new Labour Codes do not reduce take-home pay, so long as provident fund (PF) deductions continue to be calculated on the statutory wage ceiling of Rs 15,000.

In a tweet, the ministry wrote, "The new Labour Codes do not reduce take-home pay if PF deduction is on statutory wage ceiling. PF deductions remain based on the wage ceiling of Rs 15,000 and contributions beyond this limit are voluntary, not mandatory." In case the employee and employer agree, they can voluntarily contribute on wages more than the statutory limit of Rs 15000. There is no legal requirement for the same, the ministry added.

Why confusion over in-hand salary under new lab

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