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Why basic pay may not rise to 50% of CTC under new labour code?
short by Jessica Rajan / on Wednesday, 22 April, 2026
Under the new labour code, at least 50% of CTC must be wages, prompting companies to restructure salaries instead of raising basic pay, Moneycontrol reported. Raising basic salary directly could increase provident fund (PF) and gratuity payouts, pushing up employer costs and lowering take-home pay. Employees should look beyond CTC and look at PF and gratuity when assessing salaries.
read more at Moneycontrol