HOW WILL 4 NEW LABOUR CODES IMPACT YOUR TAKE HOME SALARY
PAYDAY
CTC to be at least 50% of basic salary
Basic Salary = Basic Pay Dearness Allowance Retaining Pay (if any)
Higher basic salary= Higher NPS, PF, Gratuity, lower take-home salary
Gratuity eligibility remains at 5 years for permanent employees, down to 1 yr for fixed term employees
Impact on PF, NPS, Gratuity on CTC ₹10,00,000
Particulars
Before Nov 21 (In ₹)
After Nov 21 (In )
Basic Salary
40% of CTC = 4,00,000
50% of CTC = 5,00,000
PF (24% of Basic - Employer Employee)
96,000
1,20,000
Gratuity (4.81% of basic salary)
19,240
24,050
NPS (new regime)
@14% of basic salary
56,000
70,000
In-hand
8,28,760
7,85,950
Other changes
Annual health checkup for employees aged over 40
PF, ESIC coverage for gig workers as well
Fixed Term Contract Workers can get gratuity after 1 year
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