Hey Techies, get ready for a shakeup in your salary structure! The new labour codes are set to roll out on November 21, 2025, and they’re bringing some significant changes to how your paycheck is calculated.
The biggest change? Your basic salary will now be mandated at a minimum of 50% of your Cost to Company (CTC). While this might sound good on the surface, it means your take-home pay could potentially decrease. Why? Because with a higher basic salary, your Provident Fund (PF) and gratuity contributions will also increase.
These unified labour laws aim to simplify compliance for companies and provide stronger safeguards for workers. Expect to see a boost in your long-term retirement security through higher PF and gratuity payouts. However, this also means less disposable income in your immediate earnings.
**What does this mean for you?**
* **Lower Take-Home Pay (Potentially):** Increased deductions for PF and gratuity.
* **Higher Retirement Savings:** A more robust retirement fund for your future.
* **Simplified Compliance for Companies:** Streamlined processes for HR departments.
Navigating these changes can be tricky. If you’re a company looking to communicate these changes effectively to your employees, Pikrit Designs can help! We offer graphic design and podcast editing services to create engaging content that simplifies complex information. Reach out to us at pikritdesigns@gmail.com to learn more.
Stay tuned for more updates as we decode these new labour codes!
Source: Labour Law Reporter
Link: [https://labourlawreporter.com/new-labour-codes-2025-effective-date-impact-salary/](https://labourlawreporter.com/new-labour-codes-2025-effective-date-impact-salary/)