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How will take-home salary change from April under new labour codes?
short by Daisy Mowke / on Saturday, 11 April, 2026
New labour codes redefine wages, mandating basic pay, DA, retaining allowance be at least 50% of remuneration. If excluded components like HRA or bonuses exceed 50%, excess is added back to wages. This can raise EPF contributions, slightly reducing monthly take-home pay. For ₹20 lakh CTC, in-hand salary may drop by ₹1,900/month. However, higher EPF can boost long-term retirement savings.
read more at NDTV Profit