New Delhi: The Central Government’s introduction of four new Labour Codes, replacing the existing labour laws, had triggered speculation that employees’ take-home salaries might reduce. Responding to these concerns, the Union Labour Ministry has clarified that the new framework will not impact take-home pay.
According to the Ministry, even though the basic component under CTC may increase to 50 per cent as mandated by the new codes, the adjustment will primarily affect allowances, not the net salary received by employees. It reiterated that the statutory wage ceiling for Provident Fund (EPF) contributions remains unchanged at ₹15,000, ensuring that take-home salaries will not be altered.
The Ministry added that contributions beyond the ₹15,000 EPF limit are entirely voluntary and not compulsory. It also provided an example to explain how the revised norms will continue to keep employees’ in-hand salaries unaffected under the new Labour Codes.
