Companies in India are revising salary structures to comply with new labour codes, emphasizing allowances to maintain employees’ take-home pay. This includes offering tax-efficient benefits like meal vouchers and fuel reimbursements. Amid modest salary hikes and a challenging job market, firms aim to retain talent by expanding allowances and adjusting performance incentives. “Annual performance incentives are being positioned as a key balancing lever to offset any perceived reduction in monthly take-home pay under the new wage framework. Additionally, companies are also re-examining the frequency of variable-pay disbursements, with many moving away from traditional annual payouts towards quarterly or semi-annual cycles,” said Sonakshi Das, partner at JSA Advocates & Solicitors and part of the Labour and Employment Practice. Read more
This story also appeared Online.
