How Much Will Your
Salary Change?
Basic pay must now be ≥ 50% of your CTC under the New Labour Codes. Your PF deduction increases, and your take-home may reduce by ₹1,500 – ₹8,000/month. But your retirement corpus grows faster.
What Changed Under the New Labour Codes?
Basic Pay Rule
Basic Pay + DA must now be at least 50% of your CTC (Code on Wages, 2019 Section 2(88)). If your current Basic is lower, it must be restructured.
EPF / PF Impact
Your EPF (Provident Fund) deduction increases because EPF is 12% of Basic. Higher Basic = higher PF = lower monthly take-home, but bigger retirement corpus.
Gratuity Eligibility
Fixed-term contract employees are now entitled to pro-rata gratuity upon contract completion — the 5-year minimum is waived for them (Code on Social Security, 2020 Section 53(1) second proviso). Permanent employees still require 5 years of continuous service (≈ 4 yrs 240 days in practice) before becoming eligible.
Full & Final Settlement
Your employer must settle all dues (F&F) within 2 working days of your last day, under the Industrial Relations Code, 2020 Section 77.
Regulatory Reference
| Code | Key Provision | Impact |
|---|---|---|
| Code on Wages, 2019 Section 2(y) | Basic+DA ≥ 50% of total remuneration | Core restructuring trigger |
| Code on Social Security, 2020 Section 53 | EPF basis = Basic+DA at 12%; FTE gratuity on contract end (5-yr waived); permanent employees: 5 yrs | EPF delta + gratuity output |
| Code on Social Security, 2020 — ESI | ESI ceiling ₹21,000 gross/month | ESI branch in calculation |
| Industrial Relations Code, 2020 Section 77 | F&F settlement within 2 working days | Displayed as benefit |
All four codes are in force from 21 November 2025 per MoLE notification (PIB Release ID: 2192463).
This calculator is for informational purposes only and does not constitute legal or financial advice. Consult your HR / payroll team for company-specific salary restructuring. Calculations use central rules; state-specific variations may apply.