India’s New Labour Codes Impact on Employee Pay: What You Need to Know

India’s new labour codes, effective from November 21, 2025, are redefining employee salary structures and benefits. These regulations mandate changes designed to modernize employment standards, focusing on increased retirement savings. With the requirement that at least 50% of an employee’s Cost to Company (CTC) must be the basic salary, the implications are significant. We see potential reductions in take-home pay but improved financial security through greater provident fund and gratuity provisions. Let’s explore these impacts in detail.