For a salaried employee, the most important number on the salary slip is not the CTC. It is the amount that lands in the bank account every month. That number could come under pressure as the new Labour Codes change how wages are calculated for statutory benefits such as provident fund (PF) and gratuity. But […]
For a salaried employee, the most important number on the salary slip is not the CTC. It is the amount that lands in the bank account every month.
That number could come under pressure as the new Labour Codes change how wages are calculated for statutory benefits such as provident fund (PF) and gratuity.
But there is a possible counterweight. Salary restructuring could help companies protect employees’ take-home pay without increasing their overall CTC.
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Under the Code on Wages, basic pay, dearness allowance and retaining allowance are required to account for at least 50 per cent of total remuneration for the purpose of the wage definition. Where specified allowances and excluded components exceed the 50 per cent threshold, the excess is added back to wages for statutory calculations
