New Labour Code May Reshape Salaries, But Basic Pay Hike Not Guaranteed

Brief By Moneycontrol / 11:09 AM on 23 Apr 2026

Under the new labour code, companies must allocate at least 50% of CTC as wages, but this may not significantly raise basic pay. Firms could restructure salary components instead. Increasing basic pay raises PF and gratuity liabilities, impacting costs and take-home pay. Experts advise employees to assess overall benefits, not just CTC, when evaluating compensation packages.