New Wage Rule May Reduce Take-Home Pay Despite Stable Salaries

Brief By Hindustan Times / 4:00 PM on 10 Apr 2026

A new wage rule effective April 1, 2026 mandates that basic pay constitute at least 50% of total salary, prompting a restructuring of pay components. While overall earnings remain unchanged, higher basic pay increases deductions like provident fund, leading to lower in-hand salaries. The shift balances immediate income with long-term savings for employees.