New Labour Codes may reduce take-home pay for some employees: Here’s why

 India’s new Labour Codes are estimated to directly affect employees’ take-home pay, with a revised definition of wages likely to increase statutory deductions and reduce monthly in-hand salaries for many. According to Preetha S, Partner at JSA Advocates & Solicitors, the new wage definition will directly influence PF and gratuity calculations and will require employers to proactively review existing salary structures. She notes that any revisions may also involve consent or notification requirements before implementation. While the Codes have been notified, she emphasises that their granular application depends on accompanying rules that are yet to be issued, placing employers in a “wait-and-watch” phase while they prepare internal policies for eventual compliance. Read more