New Labour Code Explained: How Salary Structure Changes Will Impact Your Take-Home
Edited By WION Video Desk
Published: Apr 20, 2026, 19:00 IST | Updated: Apr 20, 2026, 19:00 IST
India’s new labour code could quietly reshape how your salary is structured. Under the revised rules, wages must make up at least 50% of your total cost-to-company (CTC). If allowances exceed this limit, the extra portion will be added to wages—potentially increasing PF contributions while reducing take-home pay. While this may impact monthly income, it could boost long-term savings and retirement benefits.
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