Learn how India’s 2025 labour code changes and the 50% wage rule will impact salaries, PF and take-home pay in 2026.

Fears of reduced take-home salaries have surged since the new labour codes were notified, but a closer look at the PF calculation shows the impact may not be what many employees expect.

New labour codes, particularly the Code on Social Security, aim to transform Provident Fund into a social insurance system, ...

The Ministry of Labour stated that the new Labour Codes will not decrease take-home pay as PF deductions are based on a ₹15,000 ceiling.

The Labour Ministry has confirmed that employees whose PF is calculated on the Rs 15,000 statutory wage ceiling will see no reduction in take-home pay. Any PF contribution beyond this limit remains ...