The Bad PlaceTimes of India | New labour codes boost gratuity but trim take-home pay
AI generated summary, Read the full article for complete information.
In Bengaluru, many employees are seeing a modest decline in net take‑home pay after their latest payslips because the new labour codes have enlarged the definition of “wages” used for statutory contributions. The reforms require at least 50 % of total remuneration to be treated as wages, which raises the base for both employee provident‑fund (PF) contributions (now 12 % of a higher basic salary) and gratuity accruals. Consequently, some employers have increased the basic salary to meet the 50 % threshold while cutting other components, leading to lower immediate take‑home amounts even when overall cost‑to‑company rises. Firms such as SAP India are mitigating the impact by retrospectively applying revised gratuity calculations, providing one‑time compensation uplifts, and introducing uncapped gratuity benefits to offset the higher statutory outlays. Experts note that under the previous regime gratuity was calculated on basic plus dearness allowance, whereas the new code ties it to the broader wage base, potentially increasing future exit payouts. (With inputs from Supriya Roy)
New Labour Codes Impact On Salaries: New labour codes boost gratuity but trim take-home pay - The Times of India
India Business News: BENGALURU: With many employees seeing a moderate dip in net take-home salaries in their latest payslips, companies are issuing explainers to help them.
enthrivetech
Tycoon World
Patrikai.com